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Banking & Finance

Citi introduces Global Depositary Note program

Released at: 09:58, 22/10/2015

Citi introduces Global Depositary Note program

Vietnam the first Asia-Pacific country where Citi offers service.

by Doanh Doanh

Citi’s Issuer Services business, acting through Citibank N.A. in its capacity as a depositary bank, today announced that it has launched a Global Depositary Note (GDN) program in Vietnam for domestic sovereign bonds.

Vietnam is the first country in the Asia-Pacific region in which Citi provides GDN depositary services and the twelfth globally.

“Vietnam supports market development initiatives that encourage increased participation in the local capital marketplace by foreign investors,” said Mr. Vu Bang, Chairman of the State Securities Commission of Vietnam. “We believe that Citi’s GDN platform will help achieve this objective.”

“We are proud to expand our GDN depositary bank capabilities into Vietnam,” said Mr. Dirk Jones, Head of Global Issuer Services at Citi. “We look forward to facilitating enhanced connectivity between capital markets internationally and in Vietnam through our GDN program.”

“We are delighted that Vietnam is the first GDN program for Citi in the Asia Pacific region and the first of its kind to be launched in the market,” said Ms. Natasha Ansell, Citi Country Officer for Vietnam. “Through this product offering, additional international investors will have the opportunity to invest in domestic sovereign debt securities, which will facilitate greater liquidity and scalability of the market. Citi is committed to delivering innovation to our global and local clients and to contributing to the continued success and economic growth in Vietnam.”

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 international institutional investors and broker-dealers.

GDNs represent particular local debt securities, replicating the characteristics of the respective local bonds while trading in US dollar-terms and settling in Euroclear, Clearstream, and the Depository Trust Company. It is noted by Citi that this information is not for distribution in the United States or to U.S persons and investors should inquire with their broker-dealers regarding GDN trading capabilities.

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.

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