Awards for Excellence 2002
Citigroup/Salomon Smith Barney
The combination of Citibank and Salomon Smith Barney has created a bank with deep links in all emerging-market countries – especially where it owns big local banks, such as Banamex in Mexico or Handlowy in Poland – and a local presence and product platform that no other firm can match.
In loans, in liability management, in external bond issues, in local-currency debt financings, for sovereign and corporate clients alike, Citi’s franchise is unrivalled – in Latin America, in central and eastern Europe, in the Middle East, in Africa and in Asia.
“We try to think very broadly about our customers’ liability needs rather than just coming in and pitching a bond issue,” says Mike Corbat, who co-heads the firm’s emerging-market capital markets business with Phil Bennett.
Bennett adds: “Before the merger we were the classic investment bank that just dropped in every once in a while. Now we have the ability to leverage our local base and our daily client coverage.”
In terms of international bond issuance, Citi has been prominent across the board over the past year. In Latin America, it has led landmark sovereign transactions and liability management exercises for Chile, Colombia, Mexico and Peru.
In eastern Europe, it has led benchmark sovereign deals for Hungary, Poland and Romania. It also jointly led Bulgaria’s exchange offer with JPMorgan and has featured strongly in the Russian corporate market with deals for Sibneft and Gazprom.
In Asia, it jointly led the blowout $2.4 billion offering for Petronas alongside Morgan Stanley. It has been closely involved with Turkey’s international financing strategy following the currency crisis last year. And, in South Africa, it is starting to emerge as an active lead manager of public and private sector international bond issues after a slow start.
Local currency financing is also a strong point, especially in Asia where Citi is prominent in the three main markets – Hong Kong dollars, Singapore dollars and New Taiwanese dollars – and will be involved in the opening up of new currency sectors soon.
In eastern Europe, Citi is active in the region’s domestic markets. It was selected by Poland to manage both the euro leg of its two-tranche financing, along with CSFB, and the dollar leg, alongside JP Morgan.
Nick Evans
