Issuer Services

Issuer Services is a business line within Global Transaction Services at Citi, comprised of the powerful one-two combination of Agency and Trust and Depositary Receipt Services to meet and exceed client expectations in global capital markets. While the transactions we support may differ, Citi is a leading provider of processing services in both arenas.

Agency and Trust
Agency and Trust provides innovative banking solutions to financial institutions, corporate clients and public sector entities around the world. The business offers a full range of agency, fiduciary, tender and exchange, depository and escrow services in both developed and emerging markets, overseeing over US$3 trillion in fixed income and equity investments on behalf of 2,500 corporations worldwide as of July 2007.

Two of the core services offered by Agency and Trust are:

  1. Collateralized Debt Obligations (CDOs)
    Agency and Trust provides trustee and collateral administration services for issuers and arrangers of CDOs around the world that are looking to stay at the forefront of their industries. We tailor our CDO offerings to our clients' needs, using bond analytics and industry-leading technology. Specific CDO solutions we provide include:
    • Trustee
    • Paying Agent
    • Portfolio Administration
    • Custodian
    • Cash Manager
    • Account Bank
    • Calculation Agent
    • Listing Agent
  2. Structured Finance
    Agency and Trust can service virtually every type of asset-backed and mortgage-backed security, including the traditional examples below. We also have the infrastructure to anticipate and support complex Structured Finance needs that may arise in the future.
    • Car Loans and Leases
    • Commercial Loans
    • Student Loans
    • Credit Cards
    • Equipment Loans and Leases
    • Residential and Commercial Mortgages
    • Home Equity
    • Trade Receivables

Agency and Trust Case Study
In recent months, one of Citi's major competing providers of Corporate Trust services exited the business. Many of this competitor's corporate trust clients were left with "conversion anxiety" about its accounts. Citi's century-long commitment to this business and positive client sentiment highlighted our expertise in, focus on and commitment to the Corporate Trust market.

Depositary Receipt Services
Depositary Receipt Services is a leader in bringing quality non-US issuers to US and global capital markets and promoting Depositary Receipts (DRs) as an effective capital markets tool. Citi began offering DRs in 1928 and today is widely recognized for providing non-U.S. companies with a gateway to the resources of Citi and the means to diversify shareholder bases and increase liquidity.

DR Benefits to Issuers and Investors
DRs are a flexible instrument that can benefit issuers aiming to expand their reach to investors in multiple worldwide markets. Two popular DR structures are American Depositary Receipts (ADRs), which are DRs that are publicly available to investors in the U.S. specifically, and Global Depositary Receipts (GDRs), which are DRs issued simultaneously in two or more markets through a global offering - usually pursuant to Rule 144A and Regulation S under the U.S. Securities Act of 1933.

Among the benefits all types of DRs bring to issuers of are:

  • Access to capital outside the issuer's home market
  • Builds the company's visibility in the U.S. and internationally
  • Broadens and deepens shareholder base

Among the benefits all types of DRs bring to investors are:

  • Facilitates diversification of investment portfolio into Non-U.S. securities
  • Securities trade, clear and settle in accordance with practices of the investor's home market and payments are made in investor's home currency
  • Eliminates cross-border custody and safekeeping charges

Citi's success in the Depositary Receipt Services arena is endorsed by our clients, including some of the world's most demanding companies across industry sectors and regions. Examples include European brands such as Ericsson and Unilever; one of the most heavily traded stocks on the NYSE,TSMC; one of the most heavily traded GDRs in the world, Samsung, and Latin American issuers that have become global companies, such as CEMEX. This is to name only a few.

In the first half of 2007 alone, we have gained new clients from every region of the world, establishing new DR programs, restructuring existing DR programs and getting "Successor Depositary" DR appointments (meaning that a company has moved their program from a competitor to Citi). These new client issuers include Sterlite Industries,(India), BHP Billiton (UK and Australia), Spreadtrum (China), and Aracruz (Brazil).

Depositary Receipt Services Case Study
There is only one annual award for excellence in depositary receipt services globally, and that is The Asset Triple A Transaction Banking Awards. In February 2007, Citi won the "Best Depositary Receipt Bank" award for the third consecutive year. Among the deciding factors were:

  • Capital raising capability - Citi delivered the largest ever DR offering by an Asian issuer (Lotte Shopping - $3 billion) in 2006
  • Unique synergy between Citi's Issuer Services team and Citi's investment banking platform
  • Client testimonials - what we at Citi consider the highest authority always.