The document outlines Citi's corporate trust services for multilateral agencies in Latin America, highlighting its global presence and partnerships aimed at supporting infrastructure and capital needs across various sectors. Key discussions include the regulatory environment in Panama, the use of CKDes for infrastructure funding in Mexico, and market opportunities in Argentina, Peru, and Brazil. Citi's ability to collaborate with official agencies to facilitate investments and manage compliance with local regulations is emphasized throughout.

1. Corporate Trust Services for Multilateral Agencies in Latin America
Citibank Agency and Trust

2. Agenda
Opening Remarks
Rafael Cardenas
Citi’s partnerships with Multilateral Agencies
Alan Smith
Panel Discussion: Corporate Trust Services for Multilateral Agencies in Latin America
Ernesto Sarria
Profile of the Trustee in Panama
Use of ‘CKDES’ for Infrastructure Projects in Mexico
Business Sectors Driving Growth in Argentina
Mandatory Legal Reserve for Local Currency Deposits of Foreign Financial Institutions in Peru
Tax on FX for Non-Residents - IOF in Brazil
Foreign Exchange Regulations that apply to Offshore Accounts Opened by Fideicomisos (Trusts) in
Colombia
Cross Border Capabilities
Rafael Cardenas
Issuer Services Business Head for Latam
1

3. Citi’s partnerships with Multilateral Agencies
Alan Smith
Global Head of Issuer Services

4. Executive Summary
 Citi is a partner of choice for Agencies and clients
– Citi has a strong global presence across Asia, Latin America, Europe, North America,
Africa and the Middle East
– Our integrated corporate banking, capital markets, and transaction services capabilities
provide our clients and Agency partners with consistent solutions globally
 Continued need for Agency support in Latin American market
– Even as financial markets improve, Latin American companies are still looking to
Agencies to support their large scale capex and working capital needs
– There are numerous opportunities for investment in oil & gas, power,
telecommunications, financial institutions, mining and infrastructure sectors
 Collaboration opportunities between Official agencies and Citi
– Citi continues to work with Official Agencies to financings across Latin America for both
corporates, public sector clients and financial institutions
– Citi maintains a rich pipeline of infrastructure, energy and mining projects across the
region that could benefit from Agency support
1

5. Agency Partnerships
 Global presence across over 100 countries
 Unparalleled agency financing expertise developed
through long relationships with over 60 agencies
globally
 Leadership in the arrangement of multisource
financing with ECAs, MLAs and DFIs
 Broad industry experience:
Citi’s global franchise and agency finance expertise enables Official Agencies to reach an unmatched client
base worldwide, with a consistent working partnership approach
Collaboration with Citi:
 Its long and deep presence in Latin America
makes Citi an ideal partner for Official Agencies
 Official Agencies can leverage Citi’s relationships
with corporates, public sector clients and financial
institutions in Latin America to facilitate business
with key players in the region
 The need for large investment in infrastructure
continues to be a major focus for Latam
governments
 Official Agencies may provide support through
partial credit guarantees or buyer credit
guarantees to increase the credit quality of these
transactions in order to attract a broader set of
investors
*Industry chart represents 2008 transaction for EAF Latin America.
2

6. Recent Experience with Multilateral Agencies
Peru LNG
Onshore and Offshore
Collateral Agent
Itumbiara, Ituiutaba and
Campina Verde Projects
Collateral and Depositary
Agent
Asian Development Bank
Issuing and Paying Agent
The International Bank for
Reconstruction and
Development
Issuing and Paying Agent
4

7. Corporate Trust Services for Multilateral Agencies in Latin America
Citibank Agency and Trust

8. Agenda
Profile of the Trustee in Panama
Sheyla Soto
Use of ‘CKDES’ for Infrastructure Projects in Mexico
Manuel Paullada
Business Sectors Driving Growth in Argentina
Manuel Tristany
Mandatory Legal Reserve for Local Currency Deposits of Foreign Financial
Institutions in Peru Alejandro Espinel
Tax on FX for Non-Residents - IOF in Brazil
Andre Pina
Foreign Exchange Regulations that apply to Offshore Accounts Opened
by Fideicomisos (Trusts) in Colombia John Rojano
Cross Border Capabilities
Paul Burke
Ernesto Sarria
Moderator
1

9. Profile of the Trustee in Panama
 Panamanian trusts are regulated by Law #1 and Executive Decree #16 of 1984:
– Independent trust companies, insurance companies, banks, lawyers and other natural or
juridical persons may act as trustees.
 Only those trustees that conduct the trust business professionally and customarily (3 or
more p.a.) shall obtain a fiduciary license from the regulator, the Superintendence of Banks
of Panama (SBP).
– Licensed trustees shall maintain a guarantee in the amount of US$250,000 to assure the
compliance of obligations. Not less than 10% of the guarantee shall consist in restricted
deposits at any of the two Panamanian Public Banks.
– Corporate trustees shall have their stock shares issued nominally, and every transfer of
shares requires the prior approval of the SBP.
 There are more than 60 licensed trust companies, and the number is growing every year,
with a total of US$8.4 billion of assets under trust.
 Citi is present in Panama since 1904 and has been offering fiduciary services in this country
for more than 16 years.
Sheyla Soto
Citibank, N.A. Panama Branch
7

10. CKDES are securities recently developed by the Mexican Capital Markets oriented to:
• Enhance the infrastructure development in Mexico
• Capture part of the huge liquidity of domestic public pension funds (Afores) by offering new
asset classes in structured finance products
• Support other sectors such as Real Estate or more diversified via Private Equity investments
Use of ‘CKDES’ for Infrastructure Projects in Mexico
MAIN CHARACTERISTICS
 Trade publicly in Mexican Stock Exchange
 Returns linked to underlying asset/investment
 Does not require principal and interest payments
 Corporate Governance transparency
 Investments according to a specific calendar and policies
 Oriented to QIBs mainly Afores and to lesser extent Insurance
Companies and Private Pension Funds
 No ratings required
 Daily price valuations provided by price vendors
 Assets form part of a Trust Estate and Trustee issues the CKDs
MARKET REQUIREMENTS
 Attractive and sustainable Business Plan
 Manager/operator with successful track-record
 General Partner considerable co-investment
 Anchor investor participation
 Defined exit strategy
 Attractive risk – reward relation
Total Assets Under Management by
AFORES (oct 10’)
$111,544 billion
Allowable funds to be invested in CKDES,
and other Structured Financial Securities
$13 billion
** Source: Consar
Note: USD Figures with an Exchange Rate of MX $12.70
Manuel Paullada
Fiduciario Banamex
5

11. Nine Closed Transactions in Last 12 months – $1.9 billion
SPECIFIC PROJECTS INFRASTRUCTURE
RCO Macquarie Wamex Atlas Discovery Nexxus Capital Promecap AMB Prudential Artha Capital
ASSETS
Toll Roads Construction
contracts/
projects
Diversified Middle
Market
Service &
Consumer
High Growth
Financial, Health,
Education &
Consumer
Airports,
Distressed
Assets & Credit
Portfolios
Industrial &
Logistics
Industrial,
Residential &
Retail
Land Developers
for Housing,
Tourism &
Commerce
$516MKT VALUE (MM)
MATURITY 28 10+2+2 10 10+1 10+1+1 10 10 10+2 10
CO-INVESTMENT
*ICA & GSIP will
Invest $160
5%
2% of the SPV
Investments
2% of the SPV
Investments
2.5% of the SPV
Investments
10% Issued amount 20% 20% or up to MX $600 5%
** Source from Purchase or Underwriting Agreements
Note: USD Figures with an Exchange Rate of MX $12.70
PRIVATE EQUITY FUNDS REAL ESTATE
$269 $59 $91 $115 $197 $260 $244 $192
INFRASTRUCTURE
Navix
Energy project
(Pemex-CFE)
MBIA
Diversified
Marhnos
Residual
Water Plants
Infraestructura
Institucional
Roads, bridges,
ports, schools,
hospitals
Protego
Water, transport,
environmental,
communications
REAL ESTATE
Vertex
Housing
Alsis
Housing
IGS
Industrial, offices,
distribution
Grupo Lar
Public social services,
water,
communications
PRIVATE EQUITY FUNDS
EMX Capital I
Diversified -
Growth
Alta Growth Capital
Consumer, Financial
Education, Healthcare,
Entertainment
Pro Equity
Education, Energy,
Healthcare
Strong Pipeline more oriented to Infrastructure
Use of ‘CKDES’ for Infrastructure Projects in Mexico
Manuel Paullada
Fiduciario Banamex
6

12. Business Sectors driving of growth in Argentina
 Argentina has the sixth largest reserves of minerals in the world, behind China, Peru,
Philippines, Brazil and Chile):
– Today there are twelve mines that are currently operating, three under construction and
around 400 prospects at different stages of development
– In 2011 two projects will commence operations: Pascua-Lama (Barrick Gold) and Potasio
Rio Colorado (Vale), doubling GDP from around 2% in 2010 to around 4% by 2011
– Main exports are gold, copper, aluminum and silver, which represent around US$4.4
billion or 6.0% of total annual exports
– The key aspect why Argentina is expected to be a key player in mining is because of the
fiscal and other benefits granted to mining activities by the Mining Investments Law of
1994 and supplements
 Recuperation of the international market for Biodiesel due to the price increase
– Production of Biodiesel has grown 4-fold from 660M tons in 2007 to 2.4MM tons in 2010.
– New government regulation increased the use of Biodiesel in mix of gasoline
– Advantages of Argentina as a producer of Biodiesel
 Most advanced soy producer in the world (5.5% of global market)
 Record soy crop with 52.7 MM tons
Manuel Tristany
Citibank, N.A. Argentina Branch
2

13. Mandatory legal reserve for Soles deposits of foreign financial institutions in Peru
 Peru's Central Bank increased the mandatory legal reserve requirement for foreign banks
depositing local currency in the domestic banking system to 120% from 65% effective
September 1st:
– Central Bank has been managing the mandatory legal reserve levels as part of its
monetary policy
– Peruvian Nuevos Soles reached a two-year high in August vs. the US Dollar.
 The measure seeks to deter "short-term speculative funds" from entering the Peruvian
financial system and destabilizing the currency, affecting all capital inflow even in cases
when funds are not speculative in nature.
 With a strong economy based on mining, energy and fishing, and a managed budget, Peru
has become a renowned attraction for foreign investors.
 Citi local expertise provides an efficient solution to foreign investors managing local projects
with structures that require to raise capital in foreign markets.
 Citi Agency and Trust can structure solutions that would allow to Foreign Financial
Institutions to have Peruvian Soles as collateral for Project Finance or Collateralized
Lending transactions without having to worry about the mandatory legal reserve or its
associated cost.
Alejandro Espinel
Citibank del Perú S.A.
8

14. Brazil IOF – Tax over Financial Transaction
 IOF tax is applied over a range of different financial transactions
 Short Term Investments
– Tax rate decreases as the tenor of the investment increases.
– Tax doesn’t apply for investments over 30 days
– The tax applies over the earned interests
 FX (Regulations & Norms: Decree No 6.306/07)
– 4 different type of FX taxes apply depending on the activity:
 Export of goods and services
 Import of goods and services
 Inflow from financial-related deals
 Outflow from financial-related deals
– Currently, most foreign exchange transactions are taxed at the rate of 0.38%
 Companies which have dollars account in Brazil are waived of this fee
Andre Pina
Citibank Brasil S.A.
* This material should not be considered as a tax advice, as for the correct definition and calculation of taxes na indivudual analysis
of the transaction by customer is necessary. Banco Citibank S.A. is not authorized to perform tax advisory to its clients. Specific
cases should be evaluate by customers with their own tax specialists.
3

15. FX Regulations that apply to Offshore Accounts of Fideicomisos in Colombia
 In Colombia the Central Bank is responsible for Exchange Regulations and managing,
recording and authorizing changes in foreign investment
 The regulations allows Trusts (Fideicomisos) to open and administer offshore accounts (in
foreign currency) and register them as ‘Compensation’ accounts for collection of export
receivables and debt service payments
 The opening, managing and closing of ‘Compensation’ accounts are subject to the reporting
requirements of the Central Bank of Colombia and the Direction of National Taxes and
Customs (DIAN, for its acronym in Spanish)
 Citi has the ability to open DDA accounts in New York and register them as ‘Compensation’
accounts in order to be authorized to make payments to foreign suppliers and make
reserves and loan payments for a Project Finance transaction
 Citi has the ability to make the reports for the Colombian Central Bank according the
Foreign Exchange regulation. Few fiduciaries companies in Colombia have this capability
John Rojano
Cititrust Colombia S.A.
4

16. 16
Paul Burke
Citibank, N.A.
Cross Border Capabilities & Services
Activity Key Citi Agency & Trust Services
Eurobonds
Escrow
Escrow Agent, Account Administrator, Environmental
Escrow
M&A Services
Custodian, Tender Agent, Escrow Agent, Registrar,
Exchange Agent, Closing Agent
Project Finance
Security Trustee, Collateral Agent, Trustee, Escrow
Agent, Depository, Accounts Bank
Structured Finance
ALM / Debt Exchange
Exchange Agent, Trustee, Depositary, Registrar,
Calculation Agent
Global Loans Collateral Agent, Account Bank, Administrative Agent
Issuing and Paying Agent, Trustee, Depository,
Registrar, Calculation Agent, Fiscal Agent
Trustee, Paying Agent, Calculation Agent, Bond
Analytics, Investor Reporting, Tax Reporting
9

17. 17
Agency & Trust is No. 1 in Service Month after Month
Agency & Trust has consistently been a top performer in DTCC’s Industry Report Card
Legend: 1 = Best 6 = Worst Latest DTCC ranking: May 2010
Rates Open at COB
P/D - 1
Late Rates after 3:00
pm Cut-off on P/D
Amended
Announcements
Amended
Announcements 30
Days + after P/D
Bank of America 4 1 6 6
Bank of New
York Mellon
6 6 4 4
Citibank 1 1 1 1
Deutsche Bank 2 4 5 5
US Bank 2 1 1 3
Wells Fargo 5 5 3 2
Current DTCC Agent Report Card
 Rankings based on a percentage of an agent’s total rates
– Best three in each category highlighted in blue
10

18. Lima Airport Partners
Trustee and
Collateral Agent
Uirapuru
Collateral Agent and
Depositary Bank
Peru LNG
Onshore and Offshore
Collateral Agent
Select Latin America Transactions
ATE Project Finance
Collateral Agent
Itumbiara, Ituiutaba and
Campina Verde Projects
Collateral and Depositary
Agent
Transportadora de Gas del
Peru
Collateral Agent and
Trustee
IIRSA Norte, IIRSA Sur
Tranches 2 and 3
Trustee, Indenture Trustee,
Issuing and Paying Agent,
Registrar, Comparison
Agent
Survial
Trustee and
Verification Agent
Petrobras Revap / Refap
Collateral Agent and
Depositary Bank
Terminal de Contenedores
de Buenaventura
Collateral Agent and
Trustee
Panama Canal Railway Co.
Collateral Agent, Trustee,
Registrar and Paying Agent
Tenedora Nemak
Collateral Agent
Sociedad Minera Cerro
Verde
Onshore and Offshore
Collateral Agent
Votorantim purchase of
equipment from Sinoma
Escrow Agent
Indiana Toll Road
Trustee
1811

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In January 2007, Citi released a Climate Change Position Statement, the first US financial institution to do so. As a sustainability leader in the financial sector, Citi has taken concrete steps to address this important
issue of climate change by: (a) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of alternative energy, clean technology, and other carbon-
emission reduction activities; (b) committing to reduce GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (c) purchasing more than 52,000 MWh of green (carbon neutral) power
for our operations in 2006; (d) creating Sustainable Development Investments (SDI) that makes private equity investments in renewable energy and clean technologies; (e) providing lending and investing services to
clients for renewable energy development and projects; (f) producing equity research related to climate issues that helps to inform investors on risks and opportunities associated with the issue; and (g) engaging with a
broad range of stakeholders on the issue of climate change to help advance understanding and solutions.
Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.