NEW YORK--(BUSINESS WIRE)--Citi’s Issuer Services business, acting through Citibank N.A. in its capacity as a depositary bank, today announced that it launched a Global Depositary Note (GDN) program in connection with outstanding domestic sovereign bonds of the Republic of Kazakhstan. Citi now offers GDN depositary services for debt securities issued by 15 countries.
During the recent official visit of Kazakhstan President Nursultan Nazarbayev to the United Kingdom, the Ministry of Finance of Kazakhstan and Citi signed a Memorandum of Cooperation on the commercialization of the GDN program.
GDNs are a debt security version of the traditional equity-based depositary receipt (DR) structure, facilitating convenient cross-border access to local debt securities for broker-dealers and institutional investors, namely in the United States to qualified institutional buyers (within the meaning of Rule 144A) and outside the United States to non-U.S. persons (within the meaning of Regulation S). GDNs represent particular local debt securities, replicating the characteristics of the respective local bonds while trading in U.S. dollar terms and settling in Euroclear, Clearstream and the Depository Trust Company.
“Citi’s GDN product is conducive to our objective of further developing the national bond market,” said Minister of Finance of Kazakhstan Bakhyt Sultanov. “We are glad to support initiatives that promote increased diversification of the investor base for our domestic debt securities.”
“Citi is proud to offer GDN depositary bank capabilities in respect of Republic of Kazakhstan debt securities,” said Dirk Jones, Head of Global Issuer Services at Citi. “This program will provide international investors with an additional means of accessing Kazakhstan domestic sovereign bonds, contributing to greater liquidity and scalability of the local capital markets.”
“We are delighted that Kazakhstan is the first GDN program for Citi in the CIS region, demonstrating our dedication to delivering innovative solutions to the capital markets,” said Andrey Kurilin, Chief Country Officer of Citibank Kazakhstan.
Citi is a leading provider of depositary receipt services. With depositary receipt programs in 56 markets, spanning equity and fixed-income products, Citi leverages its global network to provide cross-border capital market access to issuers, intermediaries and investors.
For more information about Citi’s Depositary Receipt Services, please visit www.citi.com/dr.
Investors should inquire with their broker-dealers regarding GDN trading capabilities.
THE GDNs WILL NOT BE, AND HAVE NOT BEEN, REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (SECURITIES ACT), AND MAY NOT BE OFFERED OR SOLD IN THE U.S. ABSENT REGISTRATION UNDER THE SECURITIES ACT OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
NOT FOR DISTRIBUTION IN KAZAKHSTAN.
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
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