Citi’s Issuer Services business, acting through Citibank N.A. in its
capacity as a depositary bank, today announced that it launched a Global
Depositary Note (GDN) program in connection with outstanding domestic
sovereign bonds of the Republic of Kazakhstan. Citi now offers GDN
depositary services for debt securities issued by 15 countries.
During the recent official visit of Kazakhstan President Nursultan
Nazarbayev to the United Kingdom, the Ministry of Finance of Kazakhstan
and Citi signed a Memorandum of Cooperation on the commercialization of
the GDN program.
GDNs are a debt security version of the traditional equity-based
depositary receipt (DR) structure, facilitating convenient cross-border
access to local debt securities for broker-dealers and institutional
investors, namely in the United States to qualified institutional buyers
(within the meaning of Rule 144A) and outside the United States to
non-U.S. persons (within the meaning of Regulation S). GDNs represent
particular local debt securities, replicating the characteristics of the
respective local bonds while trading in U.S. dollar terms and settling
in Euroclear, Clearstream and the Depository Trust Company.
“Citi’s GDN product is conducive to our objective of further developing
the national bond market,” said Minister of Finance of Kazakhstan Bakhyt
Sultanov. “We are glad to support initiatives that promote increased
diversification of the investor base for our domestic debt securities.”
“Citi is proud to offer GDN depositary bank capabilities in respect of
Republic of Kazakhstan debt securities,” said Dirk Jones, Head of Global
Issuer Services at Citi. “This program will provide international
investors with an additional means of accessing Kazakhstan domestic
sovereign bonds, contributing to greater liquidity and scalability of
the local capital markets.”
“We are delighted that Kazakhstan is the first GDN program for Citi in
the CIS region, demonstrating our dedication to delivering innovative
solutions to the capital markets,” said Andrey Kurilin, Chief Country
Officer of Citibank Kazakhstan.
Citi is a leading provider of depositary receipt services. With
depositary receipt programs in 56 markets, spanning equity and
fixed-income products, Citi leverages its global network to provide
cross-border capital market access to issuers, intermediaries and
investors.
For more information about Citi’s Depositary Receipt Services, please
visit www.citi.com/dr.
Investors should inquire with their broker-dealers regarding GDN
trading capabilities.
THE GDNs WILL NOT BE, AND HAVE NOT BEEN, REGISTERED WITH THE U.S.
SECURITIES AND EXCHANGE COMMISSION UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE
U.S. ABSENT REGISTRATION UNDER THE SECURITIES ACT OR AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
NOT FOR DISTRIBUTION IN KAZAKHSTAN.
Citi
Citi, the leading global bank, has approximately 200 million customer
accounts and does business in more than 160 countries and jurisdictions.
Citi provides 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, transaction services, and wealth management.
Additional information may be found at www.citigroup.com
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