Citi's Securities Finance Program for the Public Sector - Citibank

Citi’s Securities Finance Program for the Public SectorRevenue generation in a structured programPublic-sector organizations are under constant and increasing pressure to do more with less. To rise to thechallenge, they need a service provider that not only understands these often-conflicting demands, but also canrespond creatively and on a global scale. Citi can assist your efforts with a lending program that enables you tofocus on risk mitigation while enhancing your portfolio yields. For nearly a quarter of a century, Citi’s SecuritiesFinance has been developing and delivering customized programs to do just that. We offer clients around the worlda range of Securities Finance capabilities few organizations can match.Strong focus on risk mitigationWhile optimizing yield is important toCiti and our public-sector clients, thisgoal is secondary to preserving lenderprincipal and maintaining liquidity.Our credit-risk area first reviews anyborrower introduced into our program,and works only with borrowers whohave an existing business relationshipwith Citi. We know that reinvestmentrisk is a primary concern for you andyour business. Therefore the degreeof investment guideline customizationoffered to you as a lender in ourprogram allows you to mitigaterisks and minimize them to anacceptable level.Protections of SecuritiesLending:Borrower Risk• Fully collateralized• Eligible-borrower credit analysis• Permitted borrowers selected andchanged by the lender at any time• Citi indemnificationCash Reinvestment Risk• Investment guidelines consistentwith risk profile provided by lender• Guidelines addressingconcentration, credit quality,liquidity and other applicable risksprovided by lender• Compliance with investmentguidelines monitored systemically ina pre- and post-trade environmentData IntegrityReal-time control of client lendingprogramCiti’s proprietary Securities LendingSystem (SLS) is a real-time and fullyintegrated platform. SLS provides theentire spectrum of functionality tosupport a securities lending program,as well as a high degree of control andflexibility to implement and sustainyour lending program.Our systems include specialized featuresadded for superior delivery, including:• Global centralized inventory• Extensive risk-monitoring toolsand controls• Borrower approval/limits• Flexibility for individualcollateral requirements• Third-party custodial linkages• Dynamic web-enabled reportingplatform with automatic deliveryoptionsBenefits at a Glance• Strong compliance controls• Borrower indemnification• Flexible customized productoffering• Experienced personnel• Operational excellence• Strong relationshipmanagement• Technological support• Online real-time reporting• Seamless third-party lending• 24-hour trading in 36markets around the world

Customized solutions by:• Designing the best programstructure — principal or agent —according to revenue potentialand your specific needs• Tailoring programs to collateral,investments, counterparts andlimits• Optimizing inherent tradingvalue through our borrowerrelationships and globalpresence• Optimizing internationalprograms with Citi’s globalexpertise and breadth ofresourcesDetermining your needsand meeting themWhen it comes to developinginnovative solutions to meet yoursecurities lending needs, nobodybeats Citi. From segregatedinvestment accounts to client-specificprogram parameters, we study yourunique requirements and work withthem to create the most suitablesolution.Unparalleled global reachand expertiseUsing a coordinated global approach,we can promote the availability ofyour securities. Citi’s SecuritiesFinance desks are strategically locatedto pass the book 24 hours a day in fivefinancial centers: Melbourne, HongKong, London, Toronto and New York.We currently fulfill the borrowingrequirements of over 100 topinvestment banks, broker–dealers,banks and other financial institutionsworldwide. Clients can leverage Citi’sglobal reach to gain direct benefits inthe servicing of their international anddomestic portfolios.For example, clients can optimize thevalue of their portfolio by lending in36 markets, and can benefit from24-hour coverage to expand theirportfolio’s use. Citi is looking toexpand for our clients into newlending markets in Greece, India,Poland, Malaysia and Russia to meetour clients’ expanding needs.Citi’s on-the-ground presence in eachcountry where it lends securities isextensive, providing the added valueof firsthand knowledge of the latestregulatory, tax and market changes.For more information about howCiti’s Securities Finance can helpyou attain your goals, contact:Kevin WrennDirector, Public SectorMid West and West Coast Team312-876-3296 kevin.wrenn@citi.comJoAnne JacksonDirector, Public SectorSouth and East Coast Team203-750-0686 joanne.jackson@citi.comMel DeaneDirectorSecurities Lending Product Specialist212-657-3071 mel.deane@citi.comOr visit our website atwww.transactionservices.citi.com.Global Transaction Serviceswww.transactionservices.citi.com© 2008 Citibank, N.A. All rights reserved. Citi and Arc Design, Citibank and CitiDirect aretrademarks and service marks of Citigroup Inc. or its affiliates, used and registered throughoutthe world.442467 GTS25127 12/08