Download 13-October: Citigroup and OPIC Announce the Launch of a $70

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Citigroup Inc. (NYSE symbol: C)
October 13, 2006
CITIGROUP AND OPIC ANNOUNCE THE LAUNCH OF A $70 MILLION
STRUCTURED FACILITY TO SUPPORT TRADE BANK OF IRAQ
New York – Citigroup’s Corporate and Investment Banking division, in cooperation with
Overseas Private Investment Corporation (OPIC), has announced the launch of a $70
million structured credit facility that will enable the Trade Bank of Iraq (TBI) to issue Letters
of Credit which would be confirmed by leading financial institutions, facilitating the provision
of goods and services vital to Iraq’s reconstruction after decades of international isolation.
Specifically, the trust will only guaranty reimbursement obligations on TBI letters of credit
that are not, or not entirely, supported by export credit agency cover. The facility represents
the first time commercial lenders such as Citigroup and others have been able to extend
letters of credit in Iraq that are not fully cash collateralized. Consequently, the project is
designed to increase the availability of financing for Iraqi trade transactions and to enable
Iraq to increase its funding capacity and allow it to re-enter the global financial community.
The structured facility was arranged, structured and coordinated by Citigroup’s Export and
Agency Finance group.
“Provision of trade finance for companies seeking to contribute to Iraq’s reintegration into
the global economy will be key to Iraq’s reconstruction. By supporting the new Trade Bank
of Iraq, which was created for precisely that purpose, OPIC’s financing will accelerate Iraq’s
reconstruction and involve an increasing number of international companies in the
process,” said OPIC President and CEO Robert Mosbacher, Jr.
Mohammed Al-Shroogi, Corporate and Investment Banking Head for the Middle East at
Citigroup, said: “We are determined to be part of reconstruction efforts in Iraq and we are
delighted to contribute toward promoting trade under the leadership of TBI. OPIC has been
our strategic partner in arranging this and other vital facilities for Iraq.”
The Trade Bank of Iraq is an independent Iraqi government entity created to facilitate the
reconstruction of Iraq by providing trade finance services that Iraqi financial institutions are
currently unable to offer.
The new facility comes at the heels of several other landmark transactions that
Citigroup has lead in Iraq including the recent commercial debt restructuring on behalf
of the Republic of Iraq, the launch of a $130 million OPIC partial guaranteed loan to
support small and medium term enterprises in the Iraqi private sector, and the Prepaid
L/C facility for TBI.
"This project is designed to increase the availability of financing for Iraqi trade
transactions and to enable Iraq to increase its funding capacity,” said Eli Hassine, global
head of Export & Agency Finance at Citigroup. “Agency supported deal-structures are a
crucial first step for Iraq to re-enter the global financial community."
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OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest
overseas, fosters economic development in new and emerging markets, complements the private sector
in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because
OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to
taxpayers. OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more
than 150 emerging markets and developing nations worldwide. Over the agency’s 32-year history, OPIC
has supported $164 billion worth of investments that have helped developing countries to generate more
than 732,000 host-country jobs and $13 billion in host-government revenues. OPIC projects have also
generated $69 billion in U.S. exports and created more than 264,000 American jobs. For more
information, kindly visit: www.opic.gov
Citigroup (NYSE: C), 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.
Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica,
Smith Barney and Banamex. Additional information may be found at www.citigroup.com
Media Contacts:
OPIC – Timothy Harwood
Citigroup – Danielle Romero-Apsilos
Citigroup – Karim Seifeddine
202 336 8690
212 816 2264 (US)
97 14 311 4392 (UAE)