2026 Perspectives for the Public Sector

Leadership in Action: Pioneering Digital Issuance Citi Agency & Trust has been an active participant in the growth of digital issuance within the debt capital markets. This is exemplified by Citi’s involvement as the issuing and paying agent (IPA) in several ground-breaking Digitally Native Note (DNN) issuances. Citi has worked with platforms such as Euroclear’s D-FMI to support the transformation of capital markets. Notably, Citi acted as the IPA for the World Bank’s inaugural €100 million 3-year DNN in 2023. This foundational transaction established the technical feasibility of issuing digitally native debt in a live Eurobond market and confirmed the ability to settle on a T+0 basis, a significant advancement over traditional settlement times. Building on this, Citi has been involved in several significant transactions. Citi served as IPA for the Asian Infrastructure Investment Bank’s (AIIB) $300 million DNN issuance in August 2024, the first USD- denominated DNN and the first from an Asia-based issuer on the D-FMI. This expanded the D-FMI’s global applicability and technical versatility. Citi’s support for the subsequent $200 million tap issuance by AIIB in October 2024, increasing the total outstanding to $500 million, demonstrated the scalability of the digital issuance process. In 2025, Citi was involved in the $100 million DNN issuance by Türkiye İş Bankası (İşbank). This transaction, where Citi served as both sole dealer and issuing and paying agent, marked several significant firsts: the first DNN in Türkiye, the first digitally native Eurobond issuance by a private bank in Türkiye and developing markets, and an expansion of the issuer base beyond supranationals to include financial institutions. The İşbank DNN also settled on a T+0 basis, further solidifying the efficiency gains of digital issuances. Process Flow of Digital Bond Issuances on Euroclear’s D-FMI 2. DNNs Dealer 2. Digital Cash 3. DNNs Immobilized D-FMI Issuers Traditional Cash Traditional Cash 4. DNNs Re-Issued in Traditional FMI Euroclear ICSD Asset Servicing Traditional Secondary Market Wallet Wallet Wallet 1. Asset Record Created Citi Perspectives for the Public Sector 51