Citi has announced a new sustainable time deposit (TD) solution to support US institutional clients in investing surplus cash apart from addressing their sustainability objectives.

The new solution is expected to offer competitive returns and assist projects identified under Citi’s green and social bond frameworks. The US launch expands the programme launched by the banking group in Europe, the Middle East, and Asia in 2022.

Citi stated that funds deposited into the sustainable TDs are assigned for funding or refinancing assets in a portfolio of qualified green and possibly social finance projects.

The funds will be allocated on the basis of criteria defined in the Citi Green Bond Framework, Social Bond for Affordable Housing Frameworks, and Social Finance Bond Framework.

The portfolio includes projects for energy efficiency, renewable energy, water quality, conservation, and social projects that extend financial inclusion for women and conventionally under-represented communities.

Besides, the funds in sustainable TDs can be allowed for financing or refinancing housing projects in the US.

The funding can be allowed for restoration, construction or preservation of housing for low and moderate-income people who are often confined to 60% or below of area median income tenants.

Citi liquidity management services, treasury and trade solutions global head Stephen Randall said: “Finance and treasury teams are playing an increasingly strategic role in helping their firms to support their sustainability and environmental, social and governance (ESG) goals.

“Our new Sustainable Time Deposit solution reflects Citi’s commitment to providing tools that help our clients reach their goals with their own organizations and their communities.”

The sustainable time deposit solution is presently availed in the US, UK, Ireland, Abu Dhabi, Hong Kong, and Singapore.

The financial services provider also expects to extend its capability to additional countries.

Recently, Citi Securities Services, another Citigroup unit, launched the Citi Securities Lending Access platform in Sweden to bring new opportunities for lending to the country.