Institutional Businesses

Citi's Institutional Clients Group (ICG) enables economic progress, growth and sustainability for our clients and for the world through our unparalleled global network.

The Institutional Clients Group includes five main business lines: Banking, Capital Markets and Advisory, Commercial Banking, Markets and Securities Services, Private Banking, and Treasury and Trade Solutions (TTS). Working together, we provide innovative solutions to meet the complex needs of corporations, financial institutions, public sector entities, investment managers and ultra-high-net-worth clients.

With a physical presence in 96 countries, local trading desks in 77 markets and a custody network in 63 markets, we facilitate approximately $4 trillion in financial flows daily. We support 90% of Global Fortune 500 companies in their daily operations and help them to hire, grow and succeed.

Our network-driven strategy allows us to offer an integrated suite of wholesale banking products and services to clients who value our unmatched country presence and who require a financial services partner that can help them grow in any country where they do business. This includes multinationals that are expanding globally, particularly in the emerging markets, and emerging markets companies that are growing beyond their home market/region.

We are uniquely positioned to take advantage of important, evolving global trends, including mobility, fintech, wellness and sustainability; deliver responsible, objective advice; and provide stellar execution to lead transformation for our clients.

BANKING, CAPITAL MARKETS AND ADVISORY

Citi's Banking, Capital Markets and Advisory

Banking, Capital Markets and Advisory listens, collaborates and problem solves, working tirelessly on behalf of our corporate, financial institution, public sector and sponsor clients to deliver a range of strategic corporate finance and advisory solutions that meet their needs, no matter how complex. Dedicating ourselves to these relationships and ensuring our client experience stands above all else, we leverage the breadth of our unmatched global network to provide debt capital raising, merger and acquisition (M&A), and equity-related strategic financing solutions, as well as issuer services. By serving these companies, we help them grow, creating jobs and economic value at home and in communities worldwide.

Citi executed several landmark underwriting and advisory transactions for clients in 2019. Citi acted as financial advisor and lead provider of committed financing to Occidental Petroleum Corporation on its acquisition of Anadarko Petroleum Corporation, a transaction valued at $57 billion that was the third largest energy acquisition globally and the largest in North America in the last 20 years. Its $21.8 billion bridge loan facility is the second largest in energy globally and the largest in North America. Citi served as Celgene Corporation's financial advisor on its announced merger with Bristol-Myers Squibb Company, creating a premier innovative biopharma company in the largest healthcare M&A transaction in history. Citi is serving as lead financial advisor to Raytheon on its all-stock merger with United Technologies' aerospace business. The transaction, which has a combined enterprise value greater than $155 billion, represents the largest aerospace and defense transaction in history. Citi is also serving as lead financial advisor to LVMH Moët Hennessy Louis Vuitton SE and is providing committed financing for its definitive agreement to acquire Tiffany & Co. in a $16.9 billion transaction, the largest luxury acquisition in history. This transaction is expected to close in mid-2020.

Citi was a joint global coordinator and joint bookrunner on Alibaba Group's $12.9 billion Hong Kong secondary listing, which was the largest global technology follow-on in history and the largest ever follow-on by a Chinese issuer. Citi acted as global coordinator, as well as sole financial advisor, debt structuring agent, hedging coordinator, documentation agent and facility agent on a €10.4 billion bridge facility package for CK Hutchison Group Telecom Holdings Limited (CKHGT) to support the creation of a new telecom holding company. Additionally, Citi acted as global coordinator and bookrunner on a €4.2 billion and £800 million bond offering for CKHGT. Citi also acted as global coordinator, bookrunner, mandated lead arranger and facility agent on the €4.2 billion dual-maturity term loan facilities and €360 million three-year revolving credit facility for CKHGT. Proceeds of the bond offering and term loan were used for repayment of the bridge facility.

Citi advised on a $20 billion three-part strategic liability management transaction for Petróleos Mexicanos (Pemex). Citi acted as a joint lead manager and joint bookrunner on a $7.5 billion offering of senior unsecured bonds to refinance short-term debt, joint dealer manager on Pemex's $7.2 billion dual Exchange Offers, and joint dealer manager on Pemex's $5 billion cash tender offer. Citi also structured a convertible equity portfolio financing solution for NextEra Energy Partners (NEP) and KKR to fund a renewables portfolio, a unique structure that met the strategic, corporate finance and return objectives of both clients. Under the agreement, KKR will acquire an equity interest in structured partnership with NEP that owns a geographically diverse portfolio of 10 utility-scale wind and solar projects across the United States, collectively consisting of approximately 1,192 megawatts.

COMMERCIAL BANKING

Citi Commercial Banking provides global banking capabilities and services to mid-sized, trade-oriented companies within Citi’s footprint. As many of these clients expand internationally, Citi is in a unique position to support their growth by providing access to Citi’s full range of wholesale banking solutions.

In 2019, Citi Commercial Bank experienced sustained revenue and profit growth while continuing to implement several digital solutions to transform the client experience.

MARKETS AND SECURITIES SERVICES

Markets and Securities Services

Markets and Securities Services relies on global breadth and product depth to provide an enhanced client experience. Our sales and trading, distribution and research capabilities span a broad range of asset classes, providing customized solutions that support the diverse investment and transaction strategies of investors and intermediaries worldwide.

We further streamlined our Markets operating model to drive better client service in 2019, combining FXLM and G10 Rates to create a single Rates and Currencies business line. As our clients continued to evolve and require a broad range of services, we also announced the formation of Equities and Securities Services, an integrated offering supporting the pre-trade, execution and post-trade requirements of our clients. This includes broad trading and execution capabilities for electronic and complex structured products, financing and hedging solutions, and clearing, custody and funds services.

Our digital channel, Citi VelocitySM, gives unprecedented access to capital markets intelligence and execution. More than 87,000 client users in 160 countries count on our #1 ranked platform to help them navigate markets and make trading decisions. Through our web, mobile and trading applications, clients can find proprietary data and analytics, Citi research and market commentary, access to fast, seamless and stable execution for foreign exchange (FX) and rates trades, and a suite of sophisticated post-trade analysis tools. Citi Velocity's API Marketplace gives clients unparalleled access to Citi's extensive proprietary data and content library.

Last year, we continued our support of the communities in which we live and work. Our annual e for Education campaign raised $8.15 million in 2019 to benefit education-focused nonprofits. Since its inception in 2013, the global philanthropic initiative has raised more than $37 million to help tackle childhood illiteracy and improve access to quality education. Throughout the nine-week campaign, our Foreign Exchange business donated $1 for every $1 million traded on its electronic platforms, including Citi Velocity, Citi's flagship trading platform for institutional clients, and CitiFX Pulse for corporate and custody clients. This year, Citi has expanded the campaign to include a broader range of electronically traded products, including local market bonds and futures and cash equities.

We retained our ranking as the world's largest fixed income dealer, according to Greenwich Associates' annual benchmark study, which marks the fourth year running that Citi has secured the top spot. We ranked #1 in sales quality and trading quality, as well as #1 in e-trading.

CITI PRIVATE BANK

Private Banking

The Private Bank is dedicated to helping the world's wealthiest individuals, families and law firms protect and responsibly grow their wealth. Our unique business model enables us to focus on fewer, larger and more sophisticated clients who have an average net worth above $100 million. Clients enjoy a highly customized experience, with access to a comprehensive range of products and services spanning investments, banking, lending, custody, wealth planning, real estate, art, aircraft finance and lending, and more.

In everything we do, we emphasize personalized advice, competitive pricing and efficient execution. As part of ICG, the Private Bank is able to connect clients' businesses to banking, capital markets and advisory services, as well as to Citi's other institutional resources.

Because our clients are increasingly global in their presence and in their financial needs, our unrivaled Global Client Service enables them to have dedicated local bankers in as many regions of the world as they require. They are, therefore, able to enjoy seamless, cross-border service from a worldwide team working together as one.

A growing number of our clients seek to align their investments with their personal values. Investing with Purpose is our philosophy and methodology for sustainable and impactful investing. We help clients articulate their Investing with Purpose goals and objectives, provide them with comprehensive advice and offer in-house investment management that incorporates environmental, social and governance principals, as well as partner with asset managers to deliver relevant themes and strategies.

Our offering is continuously evolving in order to address and anticipate our clients' changing needs. Included among our latest evolutions is the Private Capital Group, serving 1,400 family-owned businesses, family offices and private capital firms in 75 countries. We have extensive experience with the challenges that families and their Family Office executives regularly face, and we address their needs by combining the personalized service of a private bank with sophisticated cross-border strategies that are typically reserved for major institutions.

We are committed to helping our clients preserve their wealth for themselves, for their families and for future generations. As well as working with their other advisors to create appropriate structures and strategies, we help prepare their heirs for future responsibilities as wealth owners and leaders of the family business.

TREASURY AND TRADE SOLUTIONS

Treasury and Trade Solutions

Treasury and Trade Solutions provides integrated cash management, working capital and trade finance solutions to multinational corporations, financial institutions and public sector organizations around the globe. With the industry's most comprehensive suite of digitally enabled platforms, tools and analytics, TTS leads the way in delivering innovative and tailored solutions to its clients. Specific offerings include payments and receivables, liquidity management and investment services, commercial card programs, and trade services and trade finance. Based on the belief that client experience is the driver of sustainable differentiation, TTS has focused its efforts on transforming its business to deliver a seamless, end-to-end client experience through the development of its capabilities, client advocacy, network management and service delivery across the entire organization.

TTS continues its pursuit of delivering the best possible experience to its clients, launching leading-edge solutions and leveraging co-creation sessions held in the Innovation Labs, which in 2019 celebrated its 10th anniversary. The team's success is based on the foundation of the industry's largest proprietary network, with banking licenses in 98 countries and globally integrated technology platforms. In 2019, Euromoney magazine named TTS the World's Best Bank for Transaction Services in its annual Awards for Excellence.

TTS continues to transform itself to be the financial platform for global commerce. Digital technology is driving change across the industry, and Citi is adapting by migrating our capabilities to a digital platform. In 2019, digital onboarding went live in 25 countries - covering 58% of our global volumes. And we took our advisory dialogue with clients to new levels to help them accelerate their transformational journey to a new digital decade. Since the inception of digital onboarding, we have led over 3,000 advisory sessions with clients across our Digital Advisory, Treasury Diagnostics and Innovation Lab practices to help them grow, improve risk controls and enhance financial returns.

CitiConnect®, our API connectivity platform, reached a new milestone with more than 157 million API calls processed by clients in 2019, compared with 18 million in 2018, representing a growth rate of 750%. Core to our drive to digital is implementing a strategy where we combine our proprietary solutions and partner with fintech companies like HighRadius and Cachematrix, and key industry players like PayPal, making the services available on our industry-leading global network.

In 2019, we launched many innovative services for our clients, including Citi®'s Payment Outlier Detection in 90 countries, with advanced analytics, artificial intelligence and machine learning to help proactively identify outlier payments; and Cross-Currency Sweeps, a liquidity management solution that aggregates foreign currency balances into a currency and account of choice. We provided clients with an enhanced Supplier Finance offering, now with WorldLink® Payment Services, giving our clients access to the combined strength of two powerful platforms. We also introduced Citi® Global Collect, a collaboration between our TTS and Foreign Exchange businesses -a new cross-border platform to help clients manage collecting cross-border business-to-business payments by digitizing the transaction process and embedding FX capabilities.