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MINING FORUM
BANKING SOLUTIONS FOR MINING
Citibank Cameroun S.A.
Yaoundé, May 27th-28th 2009
By Alain-Thierry MBONGUE,Resident Vice-President
Directeur Agence de Yaounde
Agenda
Mining companies requirements
Citi Banking Solutions
Recent credentials…
Citi at a glance…
Citi Today
4
Citi Institutional Clients Group At A GlanceMarket Leading Global Footprint with Local Presence and Expertise
Nearly 200 years of history
Local presence in more than 100 countriesDedicated Global Subsidiaries Group coverage for subsidiaries of multi national companies in approx. 80 countries.
GTS network linking 140+ countries
Local trading desks in more than 80 countries
75% of ICG employees work outside of U.S.
Connection with 400 clearing systems, creating one of the largest global financial infrastructures
Comprehensive global trading and distribution platform with preeminent execution capabilities
We provide top multi-nationals with local markets access and expertise in the 100+ countries
where we operate, and we provide top-tier local
corporates with access to our global network, services and
product expertise.
Mining Companies Requirements
Provide companies with a robust and integrated tool to make cross-border payments, transact FX manage liquidity and reporting tools;
Gain transaction and pricing transparency;
Streamline efficiencies by rationalizing the number of accounts;
Offer a range of low-cost payment options (such as ACH and online checking);
Simplify reconciliation while improving security and controls;
Structure Trade solutions & ECA backed financing
Seek financial advisory services and debt/equity arrangement role
Provide Hedging mechanisms
…
Citi Banking Solutions
1. Transactional Banking Solutions
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GTS SolutionsSystem
s &Technology
Procurement
Paym
ents
&
Col
lect
ions
Trea
sury
&In
vest
men
ts
CITISOLUTIONS
Liquidity Management• Notional Pooling **• Target Balancing **• OverdraftsInvestment Capabilities• High Interest Yield Account• Time Deposits
Multi-Channel Access• CitiDirect Online Banking• Multi Banking• Liquidity Desk
•International Payment Account (offshore)•Payables and ReceivablesOutsourcing
• WorldLink Payment Services• Multi-Banking• Direct Debits *• Teller Implants *• PaylLink Cheques
• CitiDirect Online Banking• Citi File Exchange (CFX)• Technology Integration –ERP System and Bank• Treasury System Integration• Treasury Solutions Group• TreasuryVision
• Receivables Discounting• Supplier Financing• Distributor Financing• Letters of Credit• Documentary collections• Commodity Financing• Enhanced Open Account• Guarantees
Systems &
TechnologyProcurem
entPa
ymen
ts &
C
olle
ctio
nsTr
easu
ry &
Inve
stm
ents
Citi delivers solutions that enhance strategic cost management, increase payments/ collections capacity, liquidity and straight through processing
* Where available
** Where local regulation allows
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WorldLink® – International Payments Solution
Available in 190 countries and 220,000 locations
Cash
16 currencies Onsite Cheques
137 currencies Funds Transfers
32 currencies
11 currencies across 21 countries
Remote Cheques
Cross-Border ACH
Payment Types
Payment status – The status of the payment is known throughout the payment cycle and available online
Reduced use of correspondent banks in the payment solution – No need to have local currency accounts to make payments in that currency
Single process for wires and cheques – System supports both paper-based and electronic payments
Reduced transaction fees
Aggregated foreign exchange requirements – Foreign exchange rates are based on the total WorldLink payment volume per currency not on individual transactions
Dedicated WorldLink Foreign Exchange (FX) desk
Features and functionalities
Over 25 year in Remittance and FX Experience
More than 12 million payments with value of $ 575 billion in annual disbursements
Over 4,000 clients across 150 countries
China Cameroon US Senegal
SINGLE EURO/USD PAYMENT
EUR Equivalent
FX RateFX Rate FX Rate FX Rate
CNY XAF USD XOF
Payment
Amount payable
EUR EUR EUR EUR
Destination
Conversion
WorldLink® is an electronic payments system that provides a single window for making payments in over 137 currencies across the globe.
2. Trade Solutions – Export & Agency Finance
Import LCs
Import Financing
Export Financing
Bills Discounted
Receivables Finance
Receivables Financing backed by ECA
Receivables Financing for Commodities
Export & Agency Finance
Trade Finance
Supplier Finance
Inventory/ Financing
Trade ServicesTrade
Services
Trade Finance
EAF Products
ECA Guaranteed Programs
Untied Agency Guaranteed Financings
Agency Direct Lending
Private Insurance Backed Programs
LC Programs backed by ECA’s
Trade Solutions – Export & Agency FinanceCiti structures financing solutions that incorporate some form of support from Official Agencies. While the tendency has traditionally focused on term financing for mining, we can also leverage Agency programs for short-term financings.
Export LC Import collections
LC Re-imbursements Export collections
Open Account Solutions
Financing Alternatives: Tied vs. UntiedEAF structures financing involving agency enhanced lending and / or direct agency lending to corporate clients projects globally.
Definition When to use Benefits for the client
“Tied”Financing
• Financing directly linked to procurement of goods
• Provided by Export Credit Agencies (“ECAs”), hence bound by OECD Consensus for terms of their guarantees
• Excellent option when goods are primarily sourced from one country
• Seeking longer tenors and attractive pricing for capex investments
• Optimize usage of client’s credit lines
▲ Lengthens tenors ▲ Typically exempt from
withholding tax▲ Diversifies funding sources, thus
preserving credit lines▲ Offers competitive pricing▲ Visibility to future lenders or
investors
“Untied” Financing
• Financing linked to development or promoting FDI
• NOT related to procurement of goods
• Provided by various Official Agencies called Development Finance Institutions (DFIs), more recently also by select ECAs
• Highly developmental projects of an industry or of the financial markets
• When goods are sourced from a multitude of countries
• Agencies are more flexible in the types of transactions they can participate in
• Focus is less on national production but national interest
▲ Pricing is generally at market terms and tenors can extend up to 20 years with generous grace periods (e.g. 36 months)
▲ General availability in LCY▲ Sometimes potential for
mezzanine positions ▲ Product breadth much wider
than that of tied financing ▲ Useful addition in large capex
strategies with multi-country sourcing
4. Recent credentials
Citi: Landmark Metals & Mining Transactions
Source: Wall Street Journal and Thomson Financial. Wednesday, January 2, 2008.
THE WALL STREET JOURNAL.
YEAR-END REVIEW OF MARKETS & FINANCE
R10 WEDNESDAY, JANUARY 2, 2008
Acquirer (Country) Target (Country)Deal Value
($ in billions)BHP Billiton (Australia) Rio Tinto (U.K.)* 145.3
Group of European Cos.+ ABN-AMRO Holding (Netherlands) 99.4
Rio Tinto (U.K.) Alcan (Canada) 37.6
Investor Group (Canada) BCE (Canada)* 35.3
Investor Group (U.S.) TXU (U.S.) 32.1
Unicredito Italiano (Italy) Capitalia (Italy) 29.5
Investor Group (Italy) Endesa (Spain) 26.4
Kohlberg Kravis Roberts (U.S.) First Data (U.S.) 25.7
Atlantis Holdings (U.S.) Alltel (U.S.) 25.1
Bank of America (U.S.) ABN AMRO North America (U.S.) 21.0
Biggest World-Wide DealsRanked by deal value when announced; excludes net debt of target companies
Largest MiningDeal Ever
Note: Excludes spinoffs, withdrawn deals and open-market purchases.* Pending transactions+ Royal Bank of Scotland, Fortis & Banco Santander.
Joint Advisor on Acquisition of
US$189.0 bn
Unconsummated
1
Metals & Mining Experience: 2006 – 2009
Joint Bookrunner onConvertible Notes Offering
US$500 mm
March 2009
Joint Bookrunner on Senior Notes Offering
US$750 mm
March 2009
Sole Advisor on Acquisition of
A$572 mm
Pending
Sole Advisor on Sale of Conditional 51% Stake to
US$1.5 bn
Pending
Sole Advisor on Acquisition of Jacobs Ranch
Mine from
US$761 million
Pending
Joint Bookrunner on High Yield Notes Offering
US$4.2 bn
May 2009
Co-Manager on Common Equity Offering
US$692 mm
April 2009
Joint Bookrunner on Common Equity Offering
US$788 mm
March 2009
Joint Bookrunner on Senior Notes Offering
US$700 mm
March 2009
Co-Manager onConvertible Notes Offering
US$863 mm
April 2009
Co-Bookrunner onConvertible Notes Offering
US$700 mm
May 2009
Co-Bookrunner on Common Equity Offering
US$3.5 bn
May 2009
10
Joint Bookrunner onSenior Notes Offering
US$2.2 bn
May 2009
Joint Bookrunner on Common Equity Offering
US$457 mm
May 2009
Sole Financial Advisor on Acquisition of
US$2.0 bn
Pending
Metals & Mining Experience: 2006 – 2009 (Cont’d)
Joint Bookrunner on Follow-On Equity Offering
US$12.2 bn
July 2008
Joint Bookrunner on Bond Offering
US$1.3 bn
July 2008
Joint Advisor on Sale to
US$1.1 bn
August 2008
Sole Dealer Manager on Tender Offer and Consent Solicitations
US$420 mm
August 2008
Joint Bookrunner on Eurobond Offering
US$1.5 bn
August 2008
Joint Bookrunner on Exchangeable Bond Offering
US$483 mm
August 2008
Joint Advisor on Acquisition of
US$1.3 bn
August 2008
Joint Advisor on Successful Defense from
US$11.0 bn
November 2008
Joint Bookrunner on Rights Offering
US$1.0 bn
October 2008
Joint Advisor on Acquisition of
US$189.0 bn
Unconsummated
Joint Bookrunner onConvertible Notes Offering
US$518 mm
January 2009
Sole Financial Advisor on Sale to
US$9.4 bn
Unconsummated
11
Joint Bookrunner on Common Equity Offering
US$1.3 bn
January 2009
Sole Sponsor and Joint Bookrunner on Initial Public
Offering
US$132 mm
February 2009
Joint Bookrunner on Senior Notes Offering
US$3.3 bn
March 2009
Metals & Mining Experience: 2006 – 2009 (Cont’d)
Joint Bookrunner on Follow-On Equity Offering
US$2.0 bn
May 2008
Joint Lead Manager on Initial Public Offering
US$2.0 bn
May 2008
Joint Bookrunner on Senior Notes Offering
US$500 mm
May 2008
Joint Bookrunner on Convertible Senior Notes Offering
US$200 mm
May 2008
Joint Bookrunner on Senior Notes Offering
US$289 mm
May 2008
Solicitation Agent for Series Z First Mortgage Bonds
US$423 mm
May 2008
Sole Bookrunner on Senior Notes Offering
US$480 mm
May 2008
Joint Bookrunner on Initial Public Offering
US$332 mm
June 2008
Joint Bookrunner on Senior Notes Offering
US$1.0 bn
June 2008
Joint Advisor on Sale to
A$6.1 bn
June 2008
Joint Lead Arranger and Bookrunner on Asset Based
Revolving Credit Facility
US$450 mm
June 2008
Sparrows Point
Joint Lead Placement Agent on Debt Private Placement
US$350 mm
July 2008
12
Joint Advisor on Acquisition of
US$331 mm
July 2008
Sole Advisor on Sale to
US$1.5 bn
July 2008
Joint Bookrunner on Senior Notes Offering
US$1.5 bn
July 2008
THANK YOU!!!
