Water: The most valuable good as an investment proposition by Citibank.

Athens, May 21, 2007.

Citibank can distinguish prominent investment opportunities in every aspect of the socio-economic or environmental context and thus presents a new investment offering with return linked to the performance of companies who operate in the global sector of water management, as well as 100% capital protection at maturity. The new notes are the original Basket of Water Stocks Notes in EUR and USD, which invest on the increased water demand and the opportunities it creates. 

It is a fact that water is one of the most prominent goods, widely discussed nowadays, due to its increased demand as a result of the world’s population increase and the water pollution. In addition, it is estimated that there will be further development in the water sector, since it is reported that almost 1 in 5 of the world’s population still lacks access to safe drinking water, while at the same time only 3,8% of the continent’s water resources are developed.*

The payout of the new Basket of Water Stocks Notes is linked to the performance of a basket of stocks, consisting of the 6 stocks with the highest ranking in the S&P Global Water Index. These stocks are ranked by S&P based on their exposure in the water sector and their capitalization. In particular, the basket of stocks includes Veolia Environment, Suez SA, Mitsubishi Heavy Ind., Kubota Corp., United Utilities and ITT Corporation, which operate either directly (supply, infrastructure and water processing), or indirectly (distribution, transportation, packaging, logistics etc.) in the water sector.