The Citi Foundation on Thursday announced a three-year US$11.2 million international grant program to advance the integration of microfinance into the mainstream economies of developing countries. The Citi Network Strengthening Program will increase the ability of 12 major microfinance networks and their members to develop products and services that meet the needs of their clients. In addition, the program aims to enhance the industry?s infrastructure, introduce higher standards of management and governance, and promote the vital role of microfinance in providing the poor with access to financial services.

In India, Sa-Dhan, a common platform representing multiple models and approaches for microfinance, has been selected for receiving this Citi Foundation support. Sa-Dhan will use the funding to develop and implement strategic business plans that focus on expanding ability to provide clients with the products and services they need, enhance their role as advocates for the microfinance industry, develop industry infrastructure that sets standards and promotes best practices to the field, and engage in peer learning that stimulates innovation throughout the sector

The microfinance sector in India is on a tremendous growth path that is witnessing increased transformation of services from both not for profit and for profit organisations. Further evolution of the sector will be defined by the microfinance Act and the ability of the organizations to suitably adapt to this act. Accordingly, Sa-Dhan will undertake initiatives to raise awareness of the implications of the act in the Indian microfinance sector. These include:

— Dissemination of Rules & Regulation and Management of Balance sheet under existing and future legislation

— Regulatory Compliance Assistance

— Developing Mechanism of Compliance of ?Code of Conduct? with Members

— Upgrading Audit, MIS Skills, Systems & Enhancing Reporting Disciplines

— Enhancing Membership Services

— Improving Sustainability of the Network.

Mathew Titus, Executive Director, Sa-Dhan said, ?We are pleased to have been successfully selected to participate under the Citi?s Network Strengthening program, in a global initiative involving 12 networks. We hope that mutual exchange and participation would result in enhancing participating networks? ability to engage effectively with all stakeholders towards strengthening and expanding the microfinance sector in each country. Sa-Dhan is committed to ensuring and enhancing participation from all members on a common platform to synthesize and synergize viewpoints of all relevant stakeholders and consistently working on the important themes of policy advocacy, standards and capacity building.?

This initiative from Citi Foundation further adds to a decade of support provided to NGO partners for their programmes and to help them enhance capacity. Citi India?s Community Support Program was launched in 1997 to focus on capacity building of Non-Government Organizations (NGOs) who were working to provide micro credit to empower under-privileged urban women through access to capital for income generation. Over the last decade (1997-2007), Citi India has provided funds in excess of $10 million to its NGO partners.

Mr. Sanjay Nayar, CEO, Citi India, said, ?We are pleased to expand our partnership with Sa-Dhan at what we believe is a critical juncture for the microfinance industry in India. Microfinance has won tremendous acclaim as a tool for poverty reduction in recent years, but still faces numerous challenges. This initiative will help the industry to achieve the strength and scale required to substantially expand the reach of microfinance and facilitate financial inclusion.?

Across Asia Pacific, this program is being run in partnership with the Banking With The Poor Network (BWTP), the Foundation for Development Cooperation (FDC), and the program?s global partner, the SEEP Network. It will expand Citi Foundation?s long-standing support of the microfinance industry in the region through grants for capital, training and technical assistance. Over the past ten years, the Citi Foundation has committed more than US$17 million in funding for microfinance-related programs in Asia.

The regions and countries participating in the Citi Network Strengthening Program are: China, India, Philippines; Central America, Ecuador, Mexico; Central and Eastern Europe and the Newly Independent States, Russia, Pakistan, and the Middle East.

The Citi Network Strengthening Program will include:

— A comprehensive assessment of the network?s capacity to meet the needs of its members;

— An in-depth report on the microfinance industry in the respective country or region;

— Strategic, business and implementation plans which may include embracing new technologies, advocating for interest rate liberalization, establishment of ratings agencies and credit bureaus, creating local debt and equity ratings funds that raise domestic capital, and developing links between the commercial finance and microfinance sectors.

To date, the Citi Foundation has contributed nearly US$60 million in funding to support 250 microfinance institutions, microfinance networks and microenterprise programs in 55 countries. Other key initiatives in Asia this year include the Asia Microfinance Forum to be held in Hanoi, Vietnam on August 26-29, 2008 in partnership with FDC and the Banking With The Poor Network.

In addition, Citi Microfinance Group, a business unit, supports the microfinance sector through commercial activities that build scale, lower costs and introduce new products. Citi Microfinance Group currently has business relationships with more than 70 microfinance institutions in over 35 countries in Asia, Latin America, Africa, Eastern Europe and the Middle East, as well as global microfinance networks, specialized fund managers, and investors.

About Citi

Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi’s major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at http://www.citigroup.com or http://www.citi.com.

About Citi Foundation

The Citi Foundation is committed to enhancing economic opportunities for underserved individuals and families in the communities where we work throughout the world. Globally, the Citi Foundation is focusing its giving on Microfinance and Microentrepreneurship, which helps individuals become economically self-sufficient; Small and Growing Businesses, leading to economic expansion and job creation; Education, which prepares young people for personal and professional success; Financial Education, which helps individuals make informed financial decisions; and the Environment with a focus on sustainable enterprises that generate jobs and stimulate economic growth while preserving the environment. Additional information can be found at http://www.citigroupfoundation.org.

About Sa-Dhan

Sa-Dhan?s mission is to build the field of community development finance in India to help its member and associate institutions to better serve low-income households, particularly women, in both rural and urban India, in their quest for establishing stable livelihoods and improving quality of life. Additional information can be found at http://www.sa-dhan.net.

About Foundation for Development Cooperation (FDC)

The Foundation for Development Cooperation is an independent, not-for-profit international development organization, based in Brisbane, Australia. It has extensive regional activities and its early work in microfinance led to the creation of the BWTP Network in 1997. In relation to microfinance, FDC has undertaken in-depth studies on policy, regulatory frameworks, the roles of central and commercial banks, and capacity building. With Citi Foundation sponsorship, FDC and BWTP organized the “Pan-Asia Forum on Capacity Building for Microfinance in Crisis Situations” in Colombo, Sri Lanka in June 2005, and the first Asia Microfinance Forum “Partnerships and Innovations: Increasing the impact of Microfinance in Asia” in Beijing, China in March 2006. Additional information may be found at http://www.fdc.org.au.

About Banking With The Poor (BWTP)

BWTP is an expanding network of some 30-plus national policy institutions, commercial banks and NGOs from 10 countries in Asia. Its objective is to support the development of the microfinance sector in the Asia region. BWTP members include ASA (Bangladesh), Credit Development Forum (Bangladesh), Janata Bank (Bangladesh), PKSF (Bangladesh), Shakti Foundation (Bangladesh), Sajida Foundation (Bangladesh), Swanirvar Bangladesh, PKSF (Bangladesh), Bandhan (India), BWDA (India), Canara Bank (India), Friends of Women’s World Banking (India), MYRADA (India), NABARD (India), Vysya Bank (India), Bank Rakyat Indonesia (Indonesia), Bina Swadaya (Indonesia), PPSW – Center for Women’s Resources Development (Indonesia), Dian Mandiri Foundation (Indonesia), Rural Microfinance Development Centre (Nepal), Swabalamban Bikas Bank (Nepal), First Microfinance Bank Ltd (Pakistan), ASKI (Philippines), KMBI (Philippines), TSPI Development Corporation (Philippines), Bangko Sentral ng Pilipinas (Philippines), Hatton National Bank (Sri Lanka), Lakjaya (Sri Lanka), SANASA Development Bank (Sri Lanka), SEEDS (Sri Lanka), and Small Enterprise Development Company (Thailand). Additional information may be found at http://www.bwtp.org

About SEEP Network

Since its inception in 1985, the SEEP Network has been a leader in the development of the international microfinance and enterprise development fields. SEEP?s 74 institutional members are committed to reducing poverty, working in over 140 countries and reaching more than 25 million microentrepreneurs (70% of whom are women). SEEP convenes key stakeholders to generate, document and share best practices through inclusive and productive dialogue among practitioners. SEEP is committed to connecting microenterprise practitioners in a global learning community. For more information, please visit us at http://www.seepnetwork.org.

To view the attachments, click the link below: http://businesswireindia.com/attachments/CNSP_background.pdf

http://businesswireindia.com/attachments/CitiIndia_Community_FactSheet_2008.doc

http://businesswireindia.com/attachments/Citi_AP_microfinance_factsheet(Mar08).pdf