2018 - 2019 Edition of Citi Perspectives for the Public Sector

Citi Perspectives for the Public Sector |  2018-2019 21 Alibaba Group has invested in foreign payment solutions, ride-hailing apps and e-commerce companies, and Xiaomi, a Chinese smartphone manufacturer, recently opened its first retail outlet in Israel. Citi contributions to the Digital BRI include serving as the exclusive financial advisor to Norway’s Telenor in the negotiation of a strategic partnership with China’s Ant Financial in March 2018. Ant Financial, affiliated with the Alibaba Group, will invest $184.5 million for a 45% stake in Telenor Microfinance Bank (TMB), a subsidiary of Telenor Group, to further develop TMB’s mobile payment and digital financial services in Pakistan. Ant Financial views this transaction as a major step in its international expansion along the Belt and Road. Citi’s CitiDirect BE platform also underpins cross- border payment solutions for Alibaba’s Malaysia-based e-commerce fulfilment hub. The Digital BRI may yet also rocket into space. China’s National Development and Reform Commission said it intends to use communication, navigation and remote-sensing satellites to promote a Spatial Information Corridor and the Beidou satellite network. Beidou is Beijing’s answer to the U.S. Global Positioning System (GPS), and Chinese-made smartphones from Xiaomi and Huawei already support the system for geolocation data. In January 2018, China Great Wall Industry Corporation (CGWIC) signed a deal to launch a communications satellite on behalf of the Cambodian government. CGWIC has a similar agreement with the Belarussian State University. Citi: The right partner for taking advantage of the BRI As Belts and Roads proliferate in extent and scope, companies and governments globally should be prepared to take advantage of the evolving Initiative. Selecting the right partner to provide local insights, access and solutions is critical. Companies and governments also need a partner that understands China’s BRI players, the world’s most sophisticated multinationals and how the BRI interacts with global macroeconomic conditions. With operations in 160 countries, 58 of which participate in the BRI, Citi is strategically positioned to support the needs of corporations and public sector organizations investing, growing and expanding along the Belt and Road. Citi’s expertise spans capital markets, trade financing, foreign exchange, risk management, intermediation of fund flows and liquidity management. Citi leverages its extensive networks, deep capital reserves, broad product capabilities, and deep-rooted local relationships on behalf of our clients and welcomes conversations with any partners interested in learning more about its BRI- related expertise.