International Trade

Facilitating International Trade

To simplify the complexities of international trade transactions, your company will want a banking partner to provide a broad solution to all your trade needs and yet to be sensitive to the unique characteristics of each transaction. The banking partner you choose should provide an integrated, all-inclusive response, not only meeting your global requirements but also supporting your local needs. At Citi®, we specialize in both.

The Citi Advantage

As your partner, Citi works with you to help meet your global trade requirements for settlement, risk mitigation, trade finance and information services. As you would expect, our services are available in 100 countries and over 100 currencies. We strive to understand your business objectives and to help you manage your international trade transactions more efficiently.

A Clear Focus on Service and Efficiency

Citi is committed to enhancing existing systems continuously, and to investing in new technology to meet the needs of a changing market environment. Efficiency is a key imperative in any trade transaction. Our primary focus is to deliver the highest standards of customer service and processing. Citi's trade representative acts as your point of contact with Citi. This person is supported by a team of trade experts specializing in risk management, information technology and customer service. Together, this team is dedicated to understand and to meet your business objectives. Whatever your trade needs, from issuing a simple letter of credit to the more complex financing solutions, Citi is the ideal banking partner.

A. Risk Mitigation

Whether you deal with counterparties through open account or through documentary trade instruments, Citi can help structure your global approach to managing risk. Our trade solutions are tailored to meet your specific requirements for counterparty and/or country risk mitigation and include the use of our long-standing relationships with trade insurance specialists.

(i) Bid and Performance Standby Letters of Credit

Citi is a leading issuer of Standby Letters of Credit. Bid and performance standby letters of credit help mitigate the risk of a bidder's failure to perform on the bid, or a contract party's failure to fulfill the terms of the contract. These instruments, for example, may be used to guarantee a builder's obligation to complete construction of a project or to support a seller's promise to deliver goods. The instrument is issued by Citi and is payable to the beneficiary upon the beneficiary's presentation of conforming documents specified in the instrument.

There are many uses for Standby Letters of Credit. Please call your Citi trade specialist to see how a Standby Letter of Credit can work for you.

(ii) Citi Letter Of Credit Confirmations

Citi can help you arrange export letter of credit confirmations speedily and efficiently. Citi's global branch network in over 100 countries has the country risk knowledge you need to manage your risk exposure effectively.

Citi Letter of Credit Confirmations assures you of payment at the counters of the confirming Citi branch. This is of particular importance to you where you perceive the performance of the issuing bank or the stability of the issuing bank's country to be at risk. Citi's global branch network confirms letters of credit issued by banks around the world.

Confirmations Wherever Conditions Dictate

Working with Citi's trade experts, exporters can seek confirmations on a case-by- case basis throughout the world - wherever market conditions dictate. Where an exporter is able to give us a forward indication of anticipated export business, we may be able to structure a bundled confirmation facility. Our unique presence in markets worldwide, including Eastern Europe, Africa, Latin America and Asia Pacific, means that Citi is likely to satisfy your letter of credit confirmation needs in any region.

Gain Access to Effective Risk Coverage

The scale of Citi's operations worldwide creates a diverse appetite for country risk exposure. We often can take more favorable views of specific country and counterparty risks, derived from our in-depth local knowledge of each market.

Conclude Arrangements Quickly and Efficiently

Similarly, our reputation and standing in the marketplace, further enhances the availability of letter of credit confirmations. Our extensive working relationships with over 3000 financial institutions around the world allow confirmation arrangements to be concluded rapidly and efficiently, allowing you to ship goods in a timely manner.

(iii) Political Risk Insurance

Citi's trade specialists will work with you to provide a solution that addresses your risk mitigation requirements in other ways. For example, we maintain strong relationships with leading political risk insurers and can often develop an innovative solution that covers multi-shipments and/or multi-country arrangements, helping you to take an efficient and effective approach to managing trade risk.