Citi Export and Agency Finance

Treasury and Trade Solutions

As a market leader, Citi has partnered with over 60 Export Credit Agencies around the world in order to enhance its clients’ ability to expand their reach to higher risk markets and to deliver short-term trade finance designed to improve risk capacity for exporters.

What is Agency Financing? • EDC (Canada) Benefits at a Glance Agency Financing is a highly structured • Attractive Pricing: Agency • JBIC/Nexi (Japan) financing solution, in which international pricing is often lower and agencies can offer guarantees to cover • SACE (Italy) less volatile than market commercial banks’ credit and political risks, pricing and is typically • Coface (France) and also direct funding. withholding tax exempt • EKN (Sweden) • Investor-Base Specifically, Agency Financing enhances • SINOSURE (China) Diversification: Diversifies exporters’ risk capacity, enabling domestic financial partners that can companies to export goods and services In today’s current economic environment, support larger transactions to buyers around the world with a certain Export Credit Agencies are highly motivated, level of security. • Longer Tenors: Tenors and in some cases have been mandated by are typically longer both global and regional leaders to increase These enhancements can include: than without Agency their support of international trade flows • Export financing involvement with the export of goods and services from • Capital expenditures their countries. • Greater Visibility: Sovereign Agency (AAA) • Pre-export financing While the programs offered by the Export involvement gives a • Working capital financing Credit Agencies are referred to as short- positive endorsement term, the tenor is often flexible and can of counterparties • Letters of credit be determined on a case-by-case basis • Political Risk Mitigation: • Contract bonds depending on the structure of the Sovereign Agency underlying transaction. involvement can also What is an Export Credit Agency (ECA)? give deals increased An Export Credit Agency is a government Programs are generally designed to political clout agency which supports trade and investment, complement one another and, as a usually from the OECD countries to the result, several programs can be used from emerging markets. ECAs must adhere to one Export Credit Agency for the same an established set of guidelines called client, exporter and/or transaction at the OECD consensus. ECA is a “Tied” financing same time. structure, meaning it is directly linked to the procurement of goods. Pricing is market-based and varies by: • Country Top Citi ECA partners: • Tenor • U.S. Eximbank (U.S.) • Risk Counterparty • Hermes (Germany) Treasury and Trade Solutions

What is a Multilateral Agency (MLA)? Why Citi Transaction Services A Multilateral Agency (MLA) is an institution • 100+ years of local market expertise owned by more than one country that • Proprietary presence in over 21 markets supports economic and social progress in in Latin America their member countries. MLAs focus on financing developmental projects. Solutions • Access to over 3,000 correspondent bank include guarantees and insurance, relationships as well as direct lending. • six round-the-clock trade processing centers around the world Citi partners with all the major MLAs around the world, including: • World’s Best Trade Finance Provider, • EIB (European Investment Bank ) named by Global Finance 2009-2011

• ADB (Asia Development Bank) To learn more about this solution, • CAF(Corporación Andina de Fomento) contact your Citi representative or visit transactionservices.citi.com • IFC (International Finance Corporation) • IADB (Inter-American Development Bank)

What is a Development Finance Institution (DFI)? A Development Finance Institution (DFI) is a government agency that supports overseas investments into emerging markets. DFIs focus on financing of developmental projects related to their own government objectives. Solutions include rating enhancement, political guarantees, partial guarantees and direct loans.

Some of Citi’s main partners are: • OPIC (Overseas Private Investment Corporation) • FMO (Netherlands Development Finance Company) • Afreximbank (African Export-Import • ADB (Asian Development Bank)