Latin America Trade Desk in AsiaGlobal Connectivity, Local Expertise and the Most Innovative Solutions

Citi Transaction Services | Latin America and Mexico

Citi Transaction Services Latin America and Mexico | Latin America Trade Desk in Asia2

Introducing Latin American TradeWith more than a century of experience and presence in 21 countries in Latin America, you can feel confident that Citi fully understands you and the way you do business. Citi Trade Service offers local presence, processing expertise, and personalized service and support. Combined with Citi’s global platform and the state-of-the-art infrastructure of Citi Transaction Services, this globally recognized business model will enable your institution to speed up transactions, reduce costs and support your trade finance needs in Latin America.

Complementary EconomiesLatAm-Asia Trade FlowsOver the last five years, exports from the region to Asia-Pacific grew at an annual rate which tripled that of total exports (22% versus 7%). During the same period, imports from Asia-Pacific have also grown more quickly than total imports (annual rates of 15% versus 9%, respectively).

In the past 6 years, Latin America has become China's most dynamic trading partner, with an annual growth of 31% in its exports to the region between 2005 and 2010, compared with 16% to the rest of the world. In 2010, China imported $73BN worth of goods from Latin America, and exported $69BN.

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Citi Transaction Services Latin America and Mexico | Latin America Trade Desk in Asia 3

Source United Nations COMTRADE DatabaseNotes Report re�ects import and export trade flows for all goods and commodities traded between the two markets full year 2010

Citi Latin America-Asia Trade DeskCiti Latin America – Asia Trade Desk (LATD) o�ffers unrivalled global connectivity, local expertise and the most innovative trade structures and solutions to institutional clients striving to execute international trade in the most e�ffective and efficient way.

What is the Latin America - Asia Trade Desk?Based in Shanghai, China, Citi LATD will serve as our client’s link into the region on the other side of the world. Through this desk, Citi has tailored a full solution suite, that leverages from its wide spanning global network and local expertise to transform traditional trade services products into new and innovative solutions which addresses the specific needs of importers and exporters with trading partners in Latin America and Asia.

How does LATD bring value to you?Transforming Traditional Trade Services into sophisticated solutions that address the specific needs of trading with Latin America and Asia.

Latin America’s economic growth and development spark increasing demand for manufactured goods

Booming Asian population increase demand for Latin American exports of natural resources and commodities, Latin America’s growing imports of Asiamanufactured goods.

Diversified Trans-Pacific foreign direct investment flows, have evolved toward joint ventures and partnerships between LAC and Asian companies.

Flows are also increasingly two-way, with Latin American multinational firms seeking investment opportunities in Asia

COUNTRY IMPORT(USD MM)

EXPORT(USD MM)

IMPORT(USD MM)

EXPORT(USD MM)

25693 17,873 11,967 3,550 1,478 3,649

6322 6,875 25 6,368 1,152 6,699

HaitiHondurasMexicoPanamaParaguayPeruPuerto RicoUruguayVenezuela

COUNTRY

ArgentinaBrazilChileColombiaCosta RicaDominican RepublicEcuadorEl SalvadorGuatemala

6,116 24,461 17,935 3,819688 904 1,496 365 1,018

6,80438,0998,0252,1033,107131 507 8 36

Current Economic Trends

Citi Transaction Services Latin America and Mexico | Latin America Trade Desk in Asia4

Partnering with you to cross bordersLatin America• Presence in the region for 100+ years since 1884 with a staff base of over 70,000• 23 Countries (Citi Transaction Services)• 20 Currencies• 6,200 Total Citi TransactionServices Client Base• 14,400,000 Transaction Volumes• 1,872,000,000,000 Value oftransactions (USD)

Citi’s Global Trade NetworkCiti global trade network offers a full range of trade products throughout our local presence in 19 countries in Latin America and 16 countries in Asia with over 1,000 branches and network partners to facilitate trade services across the globe.

Asia• Presence in Asia for 100+ yearssince 1902 with a staff base of over 20,000• 18 Countries (Citi TransactionServices)• 18 Currencies• 6,200 Total Citi TransactionServices Client Base• 266,000, 000 Transaction Volumes• 1,221,000,000,000 Value oftransactions (USD)

Trade Services Solutions• Streamlined International trade management systems & settlement processes• Extend your payment terms• Mitigated risk associated with International Trade Flows• Optimize cash conversion cycle• Expand into new markets and new supply chain relationships

Importer (Buyer) Exporter (Seller)

• Import LC Issuance & Processing

• Direct (Documentary) Collections

• SBLCs/Guarantees

• Open Account Solutions

• CitiDirect for Trade (Importers)

• Exporter LC Services:

- Advising/Confirmation

- Export bill discounting

• SBLCs/Guarantees

• Direct (Documentary) Collections

• CitiDirect for Trade (Exporters)LatA

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• Corporate Relay

• Asia Trade Hub Singapore (ATHS)

Importer Solutions

• Off-shore RMB Trade Settlement

• Direct Presentation

• Asia Trade Hub Singapore (ATHS)

Exporter Solutions

• Off-shore RMB Trade Settlement

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Solutions

“Citi’s global trade network offers a full range of trade products throughout 32+ countries in Latin America and Asia; with over 1,000 branches and over 3,000 correspondent bank network partners to facilitate trade services across the globe. “

Citi Transaction Services Latin America and Mexico | Latin America Trade Desk in Asia 5

Six regional processing centers supporting around-the-clock operations

Why Citi• 100+ years of local market expertise• Proprietary presence in over 32 markets in Latin America and Asia• Access to over 3,000 correspondent bank relationships• 6 round-the clock trade processing centers around the worlde payment schedule.

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World’s Best Supply Chain Finance Providers

World’s Best Trade Finance Providers

Best Corporate/Institutional Internet Banks

Best Trade Finance Services (Banamex)

Best Information Security Initiatives

Regional Winner - Latin America

Country Winner - Argentina, Mexico

Country Winners - Argentina, Brazil, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Haiti, Honduras, Jamaica, Mexico (Banamex), Panama, Paraguay, Peru, Trinidad & Tobago, Uruguay and Venezuela.

Regional Winner - Latin America

Regional Winner - Latin America

Regional Winner - Latin America

Best International Trade Bankin Argentinain Colombia

Highly CommendedBest International Trade Bank in Peru

Best USD BankLatin America

Trade Finance Poll

Overall and Regional Rankings: • #1 - Latin America • # 1 - North American and Central America • Colombia

Awards

Citi Transaction Services Latin America and Mexico | Latin America Trade Desk in Asia6

Illustrating what we can do togetherDiscounting LCs through Citi Asia Trade Hub in Singapore (ATHS)

CompanyTop-tiered Brazilian company in the Industrials sectorBrazilian petrochemical company ranking top as one of the world’s largest by production capacity exporting to Asia over 30% of their total goods.

The NeedClient was anticipating a major sale to a Singaporean buyer. The commercial terms included the issuance of a term letter of credit to support the transaction. Given the large value of the transaction, the company wanted to receive export proceeds earlier to optimize their working capital at year-end. The client required a funding solution that was competitive while allowing their client to work with a preferred local Singaporean bank for the issuance of the letter of credit.

The SolutionCiti proposed a financing solution that allowed Client to receive export proceeds quicker by discounting the term letter of credit. This Latin America-Asia Trade solution is made unique through the leveraging of Citi’s Asia Trade Hub in Singapore which provided: - Access to off-shore liquidity and competitive discounting rates; - One single window access to Citi’s vast correspondent bank network allowing for multiple channels & options to ensure financing workability and balance sheet access for this large value transaction - Transaction processing through one single SWIFT routing address - End-to End support: One point of contact in the local market through Citi Brazil to facilitate the transaction and provide advisory services; end-to-end through Citi’s networks in both regions

The Result• Reduced Accelerated collections from Asian buyers• Reduced funding costs • Optimized working capital • Operational efficiencies - Optimized transaction processing and faster turnaround times - Single window access to over 3,000 correspondent banks

Corporate Relay

CompanyTop-tiered Latin American company in the retail sectorRetailer with wide-spanning presence in 4 countries in Latin America: Peru, Chile, Argentina, and Colombia

The NeedAs a major retailer and buyer of consumer goods, Client Company has vast supplier relationships throughout Asia includ-ing China, Taiwan, Hong Kong, Singapore, Vietnam, Malaysia, Indonesia, and the Philippines. Their high volume procure-ment activity was spread-out across multiple suppliers including small and medium size enterprises. The company needed to support their procurement activity in a cost e�ective and e�cient manner; maintain good vendor relations, adhere to compliance and risk-mitigation requirements while executing payment for goods. Additionally, the company wanted to ensure the receipt and quality of the imports goods, eliminating delivery risk, and structure a favorable payment schedule.

The SolutionCiti Latin America proposed a Letter of Credit solution whereby the retailer would issue LCs through Citi under its Corporate Relay program. The Corporate Relay program leverages Citi’s processing center in China and Hong Kong to allow the exporter in Asia to present documents directly in their time zone instead of forwarding documentation to Latin America. Under the program, Citi in Asia handles import documents processing including scrutinizing, settle-ment, reimbursement and negotiation of the LCs.

The ResultPartnering end to end with Citi mitigates commercial risk associated with cross-border purchases while providing direct operational and commercial benefits.

• Improves company procurement activity allowing it to receive goods faster• Improve documentary processes with a reduction in processing days of LCs• Reduction in processing costs

Through this LC relay structure the retailer improves turnaround time of their LC processing by leveraging from Citi’s global network to gain operational e�ciencies. Instead of waiting for documents to physically travel from Asia to Latin America for review, Corporate relay allows LC processing to take place in Asia’s time zone under Asian market prac-tices; not only benefiting the importer but the Asian exporter as well.

Usance Payable At Sight (“UPAS”) LCs

CompanyTop tiered Mexican company in the chemicals sectorClient company with suppliers in China; procurement activity was seasonal and consisted of high value invoices.

The NeedClient required a solution that would enable them extend their payables payment period without adding signi�cant costs to their key suppliers.

The SolutionCiti proposed that Client company issued a UPAS LC through its Asia Trade Hub in Singapore for its high-valued imports from China. By issuing a UPAS at-sight LC, their buyers would be able to receive prompt payment directly from Citi ATHS. Citi ATHS through Citi in Mexico would finance the importer through the LC at competitive off-shore market rates. Through this solution, Client Company can leverage from Citi’s proprietary network via Citi’s Asia Trade Hub in Singapore to:

• Access alternative source of USD funding• Extend payment terms no impact to your supliers• Citi ATHS will act as the �nancing bank and the bank (Citi or non-Citi) in the beneficiary country is nominated asnegotiating bank

The Result• Optimize working capital and free cash �ows by obtaining sheet financing through the LC issuance with Citi• Purchase goods from Asian suppliers in a cost e�ective and e�cient manner; maintain good vendor relations, adhere to compliance and risk-mitigation requirements; execute payment for goods

Citi Transaction Services Latin America and Mexico | Latin America Trade Desk in Asia 7

Citi Transaction Services Latin America and Mexico | Latin America Trade Desk in Asia8

Export Document Preparation Services

CompanyMultinational commodities exporter headquartered in Brazil

The NeedClient Company, a major exporter to China and the rest of Asia, has historically managed in-house the preparation ofexport related documentation for Letters of Credit issued by buyers. Client Company needed look for cost-effectivealternatives to manage documentation processing as their export volumes grew.

• Maintain visibility and control of document preparation; while• Improving operational e�ciencies and reduce processing turnaround times with trading partners on the other side of the world• Reduce operational risk associated with manual and paper-based components in their export LC processes

The SolutionA comprehensive multi-faceted document preparation and handling solution that allowed Client Company to leveragefrom Citi’s state of the art technology, physical proprietary presence in Latin America and Asia, around-the-clock processing centers both time zones, balance sheet strength, and wide network of correspondent bank relationships throughout Asia.

Citi’s comprehensive Trade Document Outsourcing service includes:• Electronic notification of LCs advised• Review of LCs against the LC export checklist that you completein consultation with our experts• Preparation of first-party documents• Liaising with third parties as necessary• Overseeing document flowsIn addition to document review, Client Company can also obtainfinancing, confirmation, bill discounting and other Trade services asrequired through this Citi relationship.

The Result• Faster conversion of trade receivables to cash and reduction in days sales outstanding• Minimize the risk of discrepancies and improve customer satisfaction while ensuring compliancy of documents• Significant cost reductions through improved operational and processing effi�ciencies• Streamline operational processes and enhance information management by maintaining online access to view reports and document images

Using Citi as a full outsourcing center, the need to manage the flow of documents as they travel back and forth between your forwarder, various divisions within your company, your third parties and the Issuing Bank is eliminated.

Solution components• Citi Trade Processing Centers in Asia• Direct Presentation for Online Document Presentation• CitiDirect Trade for Exporters for information management• Dedicated Trade Services professionals and experts to review and ensure that documenta-tion is in order• Offshore financing options through Asia Trade Hub in Singapore or other Citi branches

Citi Transaction Serviceswww.transactionservices.citi.com

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