As part of November 2012 strategic review of its Commercial Banking’s business, the Amsterdam-based company is offloading local custody services business in Bulgaria, the Czech Republic, Hungary, Romania, Russia, Slovakia and Ukraine portfolio, to concentrate on banking operations.
Addition of Bulgaria will expand Citi’s custody network coverage to more than 95 markets and its proprietary custody network will be expanded to 62 markets.
Citi securities and fund services EMEA head Sanjiv Sawhney said that the acquisition will strengthen its franchise in six important markets and positioned to serve local and global investors, intermediaries and issuers with better access and expertise in the region.
Leveraging its global banking network, the US company will be able to provide investors, intermediaries and issuers comprehensive securities services in the region.
The transaction will also offer the customers further processing efficiencies and enable consistency of service across multiple markets.
Subject to standard closing conditions and regulatory approvals, the transaction is likely to conclude during the second quarter of 2013, while full migration of the clients business may be finalized in the first quarter of 2014.
The current transaction will not affect the Dutch lender’s retail banking operations or insurance and investment management businesses in the Central and Eastern European region.
Citi securities and fund services business offers institutional issuers, intermediaries and investors across the globe with customized services delivered through proven global platforms.
Serving nearly 200 million customer accounts, Citi operates an array of businesses in more than 160 nations and jurisdictions and offers various kinds of financial products and services to consumers, corporations, governments and institutions.
