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 the Republic of El Salvador’s Letras del Tesoro (LETES). LETES are Treasury bills issued by the El Salvador Ministry of Finance.
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 for qualified institutional buyers (within the meaning of Rule 144A) and outside the United States for 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 or the Depository Trust Company.
“The Ministry of Finance welcomes Citi’s support to facilitate access to LETES for international investors through the GDN program,” said Carlos Cáceres, Minister of Finance of El Salvador. “The purpose of this program is consistent with the Ministry of Finance’s objective to further establish El Salvador as a destination for foreign investment capital.”
“We are proud to expand our GDN depositary bank capabilities to El Salvador,” said Dirk Jones, Head of Global Issuer Services at Citi. “This program will provide international investors with additional opportunities to access El Salvador domestic sovereign debt securities and help to create more liquidity in the local capital markets.”
Citi now offers GDN services for debt securities issued by 17 countries. Citi launched its GDN business in Peru in 2007.
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.