Citi’s Agency and Trust Appointed Trustee, Agent and Administrator for Korea Housing Finance Corporation’s USD 500 Million Covered Bond

Seoul, Hong Kong, Sydney, London and New York - August 1, 2011 – Citi’s Agency and Trust business, part of the Global Transaction Services division, has been appointed as bond trustee, principal paying agent, registrar, transfer agent, covered bond administrator and back-up servicer for the Korea Housing Finance Corporation’s (KHFC) USD 500 million covered bond.

Representing the second covered bond to be issued under the KHFC Act, this dual-recourse structure has opened an additional funding mechanism for KHFC to meet its goal of providing a stable source of housing finance to the Korean economy. Demonstrating a strong investor appetite for the issue as well as confidence in KHFC, the offer generated over USD1.5 billion in orders globally and achieved the lowest yield by a Korean issuer this year.

"The successful issuance of KHFC’s second off-shore covered bond demonstrates growing confidence in covered bonds as an alternative funding structure," said Seok-Hee Yuh, Chief Manager, Securitization Business Department, KHFC. "Citi’s strong global capabilities and support in both of KHFC’s off-shore covered bonds led to the smooth execution of the transactions."

Citi is serving in a number of roles on behalf of KHFC. As trustee and paying agent, Citi will facilitate the issuance and ongoing administration of the bond. As covered bond administrator and back up servicer, Citi will provide value-added services to manage and service the assets in the cover pool following an event of default.

"Citi congratulates the KHFC on this successful transaction, which demonstrates the continued development of the covered bond market in Asia Pacific," said David Russell, Managing Director, Regional Head, Asia Pacific, Securities and Funds Services, Citi. "Given Citi’s unmatched global footprint and our extensive experience executing similar complex transactions, we are an ideal partner to support KHFC and similar issuers as they look to access the growing covered bond markets."

Citi’s Agency and Trust provides innovative banking solutions to financial institutions, corporate clients and public sector entities. Spanning a network of over 100 countries, the business offers a full range of agency, fiduciary, tender and exchange, depository and escrow services, administering over US$4 trillion in fixed income and equity securities on behalf of 2,800 clients.

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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, Citi’s Global Transaction Services supports over 65,000 clients. As of the second quarter of 2011, it held on average $365 billion in liability balances and $13.5 trillion in assets under custody.