Over the last 12 months, Citi has tightened its grip on Central and Eastern Europe investment banking activity despite running a relatively lean platform.
A London-based core coordinates coverage of 20 countries, while local corporate bank franchises provide client access on the ground. “Each year, our dedicated investment banking team consistently achieves top rankings across products and sectors by covering 20 different markets across the region,” says Marzena Fick, head of Central European investment banking. “Our unique on-the-ground presence in many of these countries, often as the sole US bank, provides a distinct competitive advantage.”
The team’s flagship assignment last year was EP Corporate Group’s takeover of Royal Mail, a £3.6 deal in which Citi acted as joint financial adviser to EP on its recommended cash offer for Royal Mail’s parent company International Distribution Services.
Citi also advised Hungary’s state utility MVM on the purchase of a stake in Azerbaijan’s Southern Gas Corridor. The deal, executed across two jurisdictions under acute geopolitical scrutiny, will help Budapest diversify supply away from Russia. Citi’s success rested on joint sector knowledge and the “muscle memory” of long-standing Azerbaijan coverage delivered from its Turkish hub, according to the bank.
[Citi] reports zero voluntary attrition in the CE team over the review period. The unit’s multicultural make-up is credited for this
Turkey produced two of Citi’s headline transactions. In equity capital markets, the bank arranged a block trade for Pegasus Airlines on the tightest discount seen on a Turkish secondary sale in recent years, re-engaging international investors who had largely withdrawn from local equities. It also replaced a distressed shareholder in London-listed Global Ports Holding, the world’s largest cruise-port operator, coordinating UK public M&A specialists with Istanbul coverage to unlock the company’s next growth chapter.
“We’re celebrating our 50th year in Turkey, and we take great pride that this presence has been uninterrupted – through good and challenging times we’ve always been here to support our Turkish and international clients,” Marzena notes.
Internally, Citi has added junior bankers but, more tellingly, reports zero voluntary attrition in the CE team over the review period. The unit’s multicultural make-up is credited for this, with current members spanning several nationalities contributing to both retention and recruiting pull.
New coverage responsibilities have been extended to Kazakhstan and Uzbekistan, with a Tashkent office in the approval process, as execution technology upgrades roll out globally to support this expansion.
