Citi to Provide the European Investment Bank with Derivatives Collateral Management Solution

London - June 27, 2011 – Citigroup is to provide the European Investment Bank (EIB) with a comprehensive solution for its derivatives collateral management. The EIB, the financing institution of the European Union, has appointed Citi as its collateral management and collateral custody agent responsible for the EIB’s derivatives collateral management functions.

Citi confirmed that it would act as collateral agent to the EIB and that Citi's OpenCollateral service would take responsibility for marking derivatives collateral to market, carrying out margin calls and settlement responsibilities. The EIB will continue to value its own derivatives transactions to preserve confidentiality with counterparties. Citi will also act as Global Custodian for the securities collateral.

"Citi has been selected by the EIB as a supplier that can combine collateral management services with global custody and provide all the services associated with the maintenance of a large collateral portfolio necessary for derivatives trading," said Rajen Shah, Global Head of Collateral Management, Global Transaction Services, Citi.

"EIB has decided to continue the outsourcing of its derivatives collateral as this has been proven to be a cost effective and flexible solution, which can be efficiently combined with internal valuation of the derivatives transactions," added Anneli Peshkoff, Director of EIB’s Treasury Department. "The automatic scalability of the outsourced functions to the size of the collateral portfolio has been an important consideration in the decision."

Citi is increasingly involved in supplying third-party services as an integral component of its derivatives servicing capabilities.This enables buy-side players to delegate certain functions, generally back office and derivatives clearing services, which improves customer efficiencies across a number of collateral management-related business areas. Through its Collateral Management Unit, Citi offers clients the full breadth of collateral services including exposure monitoring, margin calling, collateral optimization and rehypothecation.


About Citi
Citi, a leading global financial services company, 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.

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About Global Transaction Services
Global Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 100 countries, Citigroup’s Global Transaction Services supports over 65,000 clients. As of the first quarter of 2011, it held on average $355 billion in liability balances and over $13 trillion in assets under custody.

Through its Securities and Fund Services business, Citi’s industry-focused experts provide investors worldwide with tailored solutions delivered through proven global platforms that feature modular, open architecture. With over $13 trillion of assets under custody and the industry’s largest proprietary network, clients can leverage Citi’s local market expertise and global reach to extract value across the entire investment value chain.