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C O L O M B I A

C O L O M B I ACiti Transaction Services Latin America & Mexico

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COUNTRY OVERVIEW

BASIC DATACapital City:

Land Area:

Population:

Main Towns:

Climate:

Language:

Measures:

Currency:

Time:

Government:

Bogotá

1.039M sq km

46M

Population (.000; World Gazetteer estimate)Bogotá (7.5M) Medellín (2.4M) Cali (2.3M) Barranquilla (1.2M) Bucaramanga (525.213

Tropical on coast, temperate on plateau

Spanish (official); many indigenous languages

Metric System The following special weights and measures are also used:Libra = 0.5 kg, Carga = 125 kgArroba = 12.5 kg, Vara = 79.8 cmQuintal = 50 kg, Cuadra = 80 metresSaco = 62.5 kg, Fanegada = 0.64 ha

US$1 : 1,943 (As of Dec 30rd 2011)

GMT -5

Agriculture Juan Camilo RestrepoCulture Mariana Garcés CórdobaDefense Juan Carlos PinzónEducation María Fernanda CampoEnvironment Frank Joseph PearlHealth and Social Protection Beatriz Londoño SotoHousing Germán Vargas LlerasFinance Juan Carlos EcheverryForeign Affairs María Ángela HolguínCommerce, industry & tourism Sergio DíazgranadosInterior Federico Renjifo Justice Juan Carlos EsguerraLabor Rafael Pardo RuedaMines & Energy Mauricio Cárdenas Technology & Communications Diego Molano VegaTransport Miguel Esteban PeñalozaCentral Bank President José Darío Uribe

Source: The Economist Intelligence Unit as of February 2012

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B. POLITICAL STRUCTURE

Official Name Republic of Colombia

Form of Government Democratically elected representative system with a strong executive

Head of State The president, elected for a four-year term; (consecutive) re-election is possible for a second term.

The Executive The president heads the cabinet

National Legislature Bicameral Congress; the 102-member Senate (the upper house) and 166-member Chamber of Representatives (the lower house) are both directly elected for four-year terms

Legal System A national Supreme Court and a Constitutional Court; regional, municipal and district courts

National ElectionsPresidential run-off election helf on June 20th 2010; municipal and departmental elections set for October 2011; the next legislative election is due in March 2014 and the next presidential election is due in May 2014.

National Government Juan Manuel Santos, of the Partido Social de Unidad Nacional (Partido de la U) won the June presidential run-off election and began his term in office on August 7th 2010Mr. Santos has a healthy majority in Congress, backed by the Partido Conservador (PC), the Cambio Radical (CR) and the Partido Liberal (FL)

Main Political Organizations Following the March 2010 congressional election: The Partido de la U, PC, CR and FL vote with the government. The Partido de Integración Nacional (PIN) is on the far right, the Partido Verde (PV) is independent and the Polo Democrático Alternativo (Polo) represents the left. President Juan Manuel Santos Vice-President Angelino Garzón

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C. POLITICAL OUTLOOK 2012 – 2016

The president, Juan Manuel Santos, of the centre-right Partido Social de Unidad Nacional (Partido de la U), will continue to push forward with his ambitious reform agenda, bolstered by his “National Unity” coalition which also includes the centre-right Partido Conservador (PC), the centrist Cambio Radical (CR), the centre-left Partido Liberal (PL) and the centrist Partido Verde (PV). As well as emphasizing important structural reforms, Mr Santos is also focusing on reducing poverty and inequality and on strengthening institutions, which, if successful, will help to reinforce political stability. Nonetheless, the challenge will be to sustain recent economic progress in the face of a hostile global backdrop. A failure on this front could eventually undermine his administration’s popularity. Coalition unity could also be threatened by continuing tensions between Mr Santos and the former president, Álvaro Uribe (2002-10). Relations between the two reached a new low after the October 2011 municipal and regional elections, in which candidates backed by Mr Uribe fared poorly. Adding to the strains, there is growing speculation that Mr Santos could be tempted to sever his allegiance to the Partido de la U, re-joining a resurgent PL.to which he originally belonged. The PL has embarked on a “reunification” project, with the aim of enticing back those members who left the party during the previous decade. This threatens to leave the conservative wing of the Partido de la U which Mr Uribe represents isolated, prompting it to leave the coalition. Nonetheless, as the parties represented in Mr Santos’s government currently control over 90% of the seats in Congress (the legislature), the departure of right-wing elements would not necessarily be fatal to the maintenance of a strong coalition and could, in some respects, improve cohesion. In the meantime, Mr Santos continues to enjoy broad popular support, with an approval rating of 65% in December. In turn, this appears to place him in a strong position to win re-election in 2014, assuming that he decides to stand again.

Although Colombia has traditionally enjoyed a high degree of constitutional stability in contrast to many of its neighbors in the region, the long-running internal conflict and drug-trafficking activities are sources of violence and instability. Mr Santos was minister of defence (2006-09) in the Uribe administration and has retained many of his predecessor’s security policies. The Economist Intelligence Unit expects continued progress over the medium term in the fight against the Fuerzas Armadas Revolucionarias de Colombia (FARC) guerrillas. The military scored a significant victory last November when it tracked down and killed the FARC leader, Alfonso Cano. However, an end to the armed conflict is not yet part of our baseline scenario. Although the new FARC leader, Rodrigo Londoño Echeverri (also known as Timoleón Jiménez, or Timochenko), has reportedly raised the possibility of peace talks, Mr Santos has made it clear that this could only happen if the guerrillas agree to the release of all hostages and also call a ceasefire. Meanwhile, many former combatants (both guerrilla and paramilitary) have been co-opted into violent criminal groups (known as the Bacrim)

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linked to the drug trade, resulting in a growing challenge for the security forces. Diversifying foreign relations and improving Colombia’s image abroad are two of the main goals of the Santos administration. In particular, the government is keen to foster stronger economic links with neighbors along the Pacific rim of South and Central America. An integrated stockmarket encompassing Colombia, Peru and Chile, which came into operation in May 2011, represents an important step in this direction, and is already resulting in increased crossborder investment. The same three countries, together with Mexico, have also launched a new trading bloc initiative, called the Pacific Alliance. Under Mr Santos, relations with Venezuela have improved. Nonetheless, bilateral trade flows have still not recovered fully from the embargo imposed by Venezuela in 2009. In addition, the allegedly friendly relations between Venezuela’s new minister of defence and the new head of the FARC represent a potential new source of diplomatic tensions. Military and financial assistance from the US under Plan Colombia (US legislation aimed at curbing drug smuggling) will gradually decline over the forecast period. Nonetheless, commercial relations with the US are set to intensify as the free-trade agreement (FTA) with the US enters into force in the second half of 2012 or early 2013. The FTA with Canada recently took effect, while an FTA with the EU is likely to come into operation in the second half of 2012. Colombia is also seeking to bolster its ties with Asian economies; it is currently negotiating an FTA with South Korea and is aiming to start formal negotiations with Japan on an FTA in 2012. Colombia is also on track to join the Asia-Pacific Economic Co-operation forum (APEC) as a full member. In addition, Colombia and China have signed a number of agreements, underscoring their interest in developing closer ties.

D. ECONOMIC PERFORMANCE

According to the Departamento Administrativo Nacional de Estadística (DANE, the national statistics office), GDP grew by an impressive 7.7% year on year during the third quarter of 2011. The increase, the highest since the final quarter of 2006, was all the more remarkable for having been achieved during a period of international uncertainty and slowing global growth. The supply-side figures reveal that the third quarter expansion was driven partly by mining (including oil). The mining sector grew by 18.4% year on year, led by a 19.3% expansion in the production of oil. However, of particular note was a sharp upturn in construction activity. Although private residential and office construction have been booming for some time, the same has not been true of public infrastructure projects (such as roads, bridges, highways and tunnels). However, reconstruction efforts after recent flood damage, as well as the sizeable investment that is now being allocated to a modernization of the transport and communications infrastructure, is finally starting to have an impact, reflected in a 20.9% year-on-year growth in public construction during the third quarter. Meanwhile, the demand-side breakdown reveals continuing strong momentum in terms of internal demand, helped by a reduction in unemployment and the increasing availability of

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credit. Personal consumption grew by 6.4% year on year, while fixed investment leapt by 18.7%. The strength of domestic demand was also reflected in a sharp rise in imports up by 18.8% in the third quarter. Moreover, a number of factors point to a continuing strong economic performance over the coming year, despite the headwinds created by sluggish global growth. In particular, the oil sector is set for further expansion, with production likely to surpass 1m barrels/day in 2012. Reconstruction efforts after the recent flood damage and a strong pipeline of construction licenses also bodes well for continued strong growth in the construction sector.

Inflation ended 2011 at 3.73%, a figure that falls within Banrep’s target range of 2- 4%, but that is 0.56 percentage points higher than December 2010 inflation. DANE also reported that food was the category that contributed the most to the price increase. The farming sector was heavily affected by the rains and floods that had an impact on the country during the second half of 2011, leading to a 5.3% increase in food prices. In overall terms, the inflation figures appear to vindicate Banrep’s monetary stance in 2011, which was characterized by a gradual tightening in policy. The fact that inflation finished the year higher than in 2010 can largely be ascribed to factors (in the form of adverse weather) outside the control of the central bank. Nonetheless, the continuing strength of internal demand, combined with rapid credit growth, suggests that Banrep will need to remain vigilant in monitoring inflationary pressures. Although the Economist Intelligence Unit is forecasting an extended pause in the monetary tightening cycle, further rate hikes cannot be ruled out if inflation surprises on the upside over the coming few months.

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E. ECONOMIC FORECAST

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Economic Growth

After estimated GDP growth of 5.5% in 2011, the pace of expansion will slow slightly to 4.4% in 2012 reflecting the impact of slower global growth. Nonetheless, Colombia stands to benefit from the gradual but ongoing recovery in the US economy. Over two-fifths of the country’s exports go to the US, making it a much more important market for Colombian exporters than Europe. Domestic demand growth will also moderate, although private consumption growth will still receive support from declining unemployment and low real interest rates. As the global economy starts to improve, from 2013 onwards, the drag on Colombian growth from a negative foreign balance will diminish slightly, raising average GDP growth in 2013-16 to 4.8%.

Robust investment with an associated heavy demand for imports.will remain a feature of the entire forecast period. Gross fixed investment will expand by an average of 10.7% per year in 2012-16, as investors continue to plough money into the hydrocarbons and mining sectors. The implementation of the FTA with the US will provide a further impulse to investment. After slackening in 2012, there will be a renewed acceleration in export growth in 2013-16, driven by expanding oil and mining exports. The FTAs with the US, Canada, the EU and a number of Asian countries will also play an important role in boosting nontraditional exports.

On the supply side, the gains from improved security will continue to benefit the hydrocarbons sector. Production has risen sharply over the last two years, reflecting rising incremental production from existing fields. We expect further increases over the forecast period, with output breaching the 1m barrels/day mark in 2012 and rising to over 1.3m b/d

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COUNTRY OVERVIEW

by 2016.helped by substantial foreign direct investment (FDI). Once the expansion of a refinery in the northern coastal city of Cartagena is completed in 2013, oil exports will drop by around 70,000 b/d, but this will be offset by a fall in imports of refined oil products. Rising domestic demand and increased purchasing power will foster further development of the retail sector. This will also support manufacturing, although some sectors, notably textiles and clothing, will struggle as they face fierce global competition. Construction will be underpinned by large-scale infrastructure projects, expansion in mining and energy production, and strong pent-up demand in the housing market. A gradual recovery in coffee output from 2013 onwards will provide a boost to the agricultural sector assuming some relief from the heavy rainfall that has affected the last two growing seasons. The Santos administration will also focus on boosting agricultural production in the medium term, but lingering security weaknesses in rural areas and poor infrastructure will remain barriers to more rapid expansion.

Inflation

Inflation ended last year at 3.7%.within the central bank’s target range of 2-4%. and would have been much lower, had it not been for the impact of rising food prices. With meteorologists predicting a continuation of the rainy season into the first quarter of 2012, there is a threat of further upward pressure on food prices in the near term, as a result of flood damage to crops and transport infrastructure. However, with international commodity prices expected to fall in 2012, productive capacity rising (reflecting the continuing surge in investment) and domestic demand set to moderate (after very rapid growth in 2011), we expect inflation to decline to an average of 3.2% in 2012. The recent sharp recovery in the peso will also help to dampen inflationary pressures. Assuming no major supply side or exchange rate shocks, we expect inflation to average just over 3.2% per year from 2013-16, close to the mid-point of the target range, underpinned by further monetary tightening from 2013 onwards.

Exchange Rates

Following a wave of global risk aversion triggered by the deepening debt crisis in the euro zone, the peso fell sharply against the “safe-haven” US dollar in the latter stages of 2011. However, since the start of 2012, the peso has rebounded strongly, buoyed by some scaling back in global risk aversion but also a flow of positive domestic news, including the announcement that FDI inflows reached a record US$14.8bn last year. With interest rates in Colombia above those in developed economies coupled with continuing strong FDI inflows, we expect the strong underpinning of the peso to continue. The authorities are already starting to come under renewed pressure from exporters to tackle the problem of what they deem to be excessive peso strength. At the end of September last year, Banrep abandoned its programme of daily dollar purchases amounting to US$20m each day in favor of irregular auctions. However, if the appreciation continues, we believe that Banrep may re-instate the programme of daily dollar purchases. Against this backdrop,


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we expect the peso to average Ps1,841:US$1 in 2012 and Ps1,825:US$1 in 2013. As the Federal Reserve (the Fed, the US central bank) finally begins to raise interest rates later in the forecast period, the peso will then weaken slightly against the US dollar in 2014-16.

External Sector

With exports of oil accounting for around 40% of merchandise earnings, lower global oil prices will curb the growth of merchandise export earnings in 2012. The current-account deficit will consequently widen to 3% of GDP, from an estimated 2.7% of GDP in 2011. We forecast a modest recovery in oil prices from 2013 onwards, which together with a rise in oil export volumes and faster growth in non-traditional exports will contribute to a narrowing of the current account deficit, to 2.5% of GDP in 2016. The services and income accounts will remain in deficit throughout the forecast period. The deficit on the services account will average 1% of GDP in 2012-16, with growth in tourism inflows and service exports (such as business outsourcing) offsetting a rise in freight costs. The income deficit will average 4.1% of GDP annually in 2012-16, reflecting strong profit remittances from foreign companies based in Colombia. The transfers surplus is forecast to average 1.7% of GDP in the forecast period, sharply down on the 2006-08 average of 2.6%, as remittances from Colombian workers in the US and Europe remain below their pre-crisis highs. Supported by continuing strong inflows of FDI which will average 3.2% of GDP annually in 2012-16.we expect international reserves to reach nearly US$50bn in 2016, sufficient for 5.6 months’ import cover.

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A. BANKS IN COLOMBIA

Colombia Constitution

Financial Institutions are expressly mentioned in the constitution. Pursuant to the constitution, banks provide services highly important for the country, along with special regulation being enacted. The constitution states that congress shall enact the statute applicable to banks and other financial institutions and that the Central Bank has autonomy from the executive.

Congress (Congreso)

Issues the financial regulations applicable to banks that serve as a framework to all derived regulation.

Central Bank (Banco de la República)

Monetary Policy and Exchange Policy are ruled by the Central Bank.

Ministry of Finance (Ministerio de Hacienda y Crédito Público)

By means of decrees, the Ministry of Finance regulates the laws issued by Congress in relation to banks, securities operations, etc.

Superintendence of Finance (Superintendencia Financiera)

The Superintendence of Finance supervises the activities of the Banks in relation to the entire previous regulatory framework. It usually issues mandatory “resolutions and circulars” in order to explain the scope of the applicable rules and to clarify the regulatory framework. Many decrees delegate authority in this supervisor.

AMV (Autoregulador de Mercado de Valores)

A self-governing entity that regulates the securities operations of the banks. It is delegated by statute and by the Supervisor.

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B. CITIBANK IN COLOMBIA

Citi was established in Colombia in 1929 and proudly celebrated its 80th anniversary in 2009. There is a consumer and corporate customer base with more than 390,000 individual accounts and almost 3,800 companies. The 4,100 employees proudly and actively assist their local communities every day in each of the businesses, which include Transactional Banking Services, Agency & Trust, Trade, Corporate and Personal Banking, Retirement Services, Investment Banking, and Stock Broker and Treasury Products. Citibank Colombia counts with an extended network of 41 branches with presence in 14 towns throughout the country.

Location of Branches

• Bogota• Medellin• Cali• Cartagena• Barranquilla• Bucaramanga• Buenaventura• Ibagué• Manizales• Neiva• Pereira• Pasto• Villavicencio• Cúcuta

BANKING SYSTEM

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A. CLEARINGHOUSE

Citibank Colombia has the capability to make funds transfers to all the banks in Colombia through ACH/CENIT clearing houses.

ACH Colombia was founded in November 2000, springing from the interest of an important group of financial entities with the common goal of optimizing country’s financial services and working together to achieve safe, efficient, and economic electronic transactions and information exchange.

ACH Colombia is a member of the National Automated Clearing House Association (NACHA) of the United States; embracing the standards, procedures, and formats defined by said association and adjusting them to the Colombian environment.

CENIT, the National Interbank Electronic Compensation, is an Automated Clearing House operated by the Colombian Central Bank, Banco de La República. CENIT provides the service of processing low value electronic orders of payment or collection, whether to the organization’s own name savings or checking account or to its clients’ natural or legal person’s savings or checking account.

B. FUNDS AVAILABILITY SCHEDULE

Operation Cut- Off Time Funding Date Book To Book 17:00 Same Date Interbank 15:00 Same Date Check 16:00 (t-1) Same Date

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A. TAXES

Income Tax

The outstanding Corporate Income Tax rate in Colombia is 33%.

Withholding Tax

In Colombia, commissions and fees are subject to an 11% withholding tax rate. It is important to note that interests on averages in banking accounts, are exempt from withholding tax. Offshore payments are subject to a 10% rate of withholding tax when referring to consultant fees, technical services, or technical assistance. Interests paid to financial institutions regulated by the Colombian Central Bank are exempt from tax withholding only when the loans are used for Colombian social and economic development. In other cases, those interests are subject to the above mentioned 33% rate.

The corresponding interest on fixed income instruments (i.e. CD’s) and interest earned in savings accounts are levied by a 4 or 7% rate (percentage depends on the tenor).

Other Taxes

Value Added Tax (IVA) for financial provided services is set at a 16% rate. Interest payables for loans are exempt from Value Added Tax.

There is a 16 % rate assessed on all fees paid monthly to Securities and Fund Services. The VAT is assessed only on the difference between the two rates.

Stamp Tax

The Stamp Tax assessed a 0.5 % rate on all fees paid monthly to the local administrator; the rate will be reduced to 0% from 2010 onwards.

If the client extends or subscribes private documents to be executed in the country, or documents that give rise to obligations therein, a stamp tax at the rate of 0.5% shall be due upon the monetary obligations agreed upon in such documents. Please be advised that the stamp rate will be reduced to 0% from 2010 onwards. The effective date for this gradual change will be the first day of January of each year.

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Debit Tax: GMF - Gravamen a los Movimientos Financieros

In 2002, Colombian Tax regulation established a tax for Financial Transactions (Debit Tax). Initially it was set at 2 x 1000, being increased to 4 x 1000 in 2004 and outstanding as of 2009.

The transference of resources between checking and savings accounts of the same financial institution where the Investor is the sole holder, are not subject to this tax. The tax will not accrue either with the transference of resources deposited in these accounts to collective savings accounts open in the same financial institution.

Likewise, clearing and settlement transactions of Depositories and Stock Exchanges on securities are exempt from this tax so long as all the parties involved in the operation are direct depositors and are entitled to undertake actions as clearing and settlement agents in the respective depositories.

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A. IMPORT AND EXPORT REGULATIONS

The Import and Export financing activity is regulated under Resolución 8 de 2000 by Colombia’s Central Bank. Foreign exchange procedures are set by the Central Bank’s Department of Foreign Exchange, or Departamento de Cambios Internacionales (DCIN), and the Department of Fiduciary & Securities (DFV). In general terms, this ruling determines:

• When the development of a foreign exchange operation requires the filing of a foreign exchange form.• The forms must be used depending on the nature of the foreign exchange operation, as well as filing terms an conditions.• The responsibility of Citibank-Colombia S.A. as IMC and of the client as importer/ debtor.• The documentation must be delivered by the client when developing a foreign exchange operation.• Terms and conditions in which the bank as foreign exchange intermediary and of the client as debtor must inform Central Bank of the transactions being developed.• Constitution of the deposit (if applicable).

TRADE REGULATIONS

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A. SAVING ACCOUNTS FOR CORPORATIONS

The Money Market Deposit Account (MMDA) gives a higher yield in demand deposit account. The individual can make withdrawals freely, but the interest accrues only on the balance that remains for more than seven days.

B. OVERNIGHT INVESTMENT AND SWEEPS

Provide automatic fund movement from passbook to high-yield demand deposit accounts on a daily basis.

C. TIME DEPOSITS

In Colombia the USD Time Deposits have no tenor limits.

D. MONEY MARKET FUNDS

Funds through the Western Asset Management (WAM).

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CASH MANAGEMENT

A. LOCAL CASH

Smart Account Structure

Citibank-Colombia S.A. offers savings accounts (interest bearing accounts) & current accounts (checking accounts).

Alternatively, it is possible to create a “Smart Account” structure, where collections are received and kept in a savings account (concentration account) and payments are made from current account(s) that keep zero balance generating an intra-day overdraft. At the end of the day, funds are automatically transferred from the savings account to cover the overdraft.

The Smart Account structure will allow our customer to improve the management of surplus and deficit funds among participating accounts. ZBA also ensures that each account plays a key role in facilitating your overall treasury and liquidity management needs.

B. COLLECTION

Citirecaudos

Citirecaudos is an automated collection system of invoices, which allows your customers to make manual credits into your account at any branch office. Those payments are immediately reported into Citidirect Online Banking. Citirecaudos systems allow operations on cash (Colombian Pesos) and local checks.

Collection operations through Citirecaudos can be made by your customers using standard slips, which are available at the branches of Citibank-Colombia S.A., or by reading the barcode signs of your custom bills.

Citirecaudos Standard Slip

The standard “Citirecaudo” slip, allow payers to make payments up to 15 invoices using only one transaction, all these invoices are linked to one main reference:

CITI SOLUTIONS AND SERVICES

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MISPAGOSALDIA.com Collection System

Mispagosaldia.com (MPAD) is an electronic and centralized bill payment system. It allows Citi customers (GCG/CIB) and non Citi Customers to pay their invoices using any of the MPAD channels.Through the MPAD channels, any payer (customer) can consult, schedule an automatic payment, or pay their invoices in an easy and secure way, Monday through Sunday (24 hours a day)

MPAD Overview• MPAD receives billing information – contract, invoice number, amount, due dates – and makes it available through diverse collection channels to the payer.• Enforces compulsory payments by using a push approach to the payer to initiate the transaction.• Billing information and collection reports comply with market standards and Citi’s proprietary (RCO, CitiDirect).• Layered design allows us to add/integrate additional channels with minor efforts.• Robust and reliable infrastructure accommodates high availability requirements from the branch/ATM networks/CNB (above 99%).

MPAD Channels• Internet (www.mispagosaldia.com)• C2B (Consumer Users)• B2B (Corporate Users)• Extended Network (CNB)• Gtech (4,000 + terminals)• Visa - Aviatur• ATM’s• IVR (Citiphone) • Enrollment



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• Third party financial institutions proprietary channels• Direct Debit (ACH Colombia)• PSE (ACH Colombia)

C. CITIDIRECT ONLINE BANKING FOR LOCAL CASH MANAGEMENT

CitiDirect® Online Banking, is a web-based system and will be implemented at our customer Treasury Center in Colombia as the primary tool to manage all banking transactions as well as account information (e.g. downloading bank statements, customized reporting, historical and audit trail reporting, and initiation of local transactions).

Advantages of CitiDirect

•Standardized, integrated means of sharing information with Citibank-Colombia S.A.•Simplified easy-to-use self-installation.•End-to-end service, including online technical and customer service support.•Multi-layered state-of-the-art security features.•Global access to Citibank-Colombia S.A. using a standard Web browser.• Instant and automatic application upgrades.

CitiDirect Functionalities

• Payments• Secure flexible design.• Detailed information at every step.• File import capability.• Easy payment repair.• Up-to-date, online support at your fingertips.

Information Reporting • Real-time balance, account statement and transaction reporting.• Access to balances, intraday and prior day account statements and transaction details.• Account reconciliation.• File Export capability.• Electronic Transactions/ Online request Form.

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CitiDirect Additional Features

The complete electronic multi-business system for global, regional, and local electronic banking provided by Citibank-Colombia S.A. will enable our customer to comprehensively identify, control and manage their financial position around the world.

By integrating versatile transaction initiation, flexible account reporting, and advanced cash forecasting tools, Citibank-Colombia S.A.’s electronic banking services will allow our customer to generate a more effective and efficient process of liquidity and exposure management.

CitiDirect Online Banking is a new way to bank that puts the client’s banking functions all in one place, at their fingertips, and within their entire organization.

CitiDirect lets the client access their accounts-real time, and an ever-expanding portfolio of industry-leading products and services through the Web. This creates higher efficiency, more flexibility, and more control of the banking transactions.

Easy Access, Total Control

CitiDirect delivers banking applications to the client’s desktop no matter where they are so they can access and control their critical banking activities at every level of the organization — locally or company-wide. Transactions can take place at any computer in any location in the organization, and be protected by Citi’s extensive security features.

Citi’s advanced technology allows access to CitiDirect via a dial-up or a dedicated Internet connection, providing fast, convenient and secure access to Citibank-Colombia S.A.’s services. The customer can access the Internet directly through an Internet service provider (ISP) or through their company’s network access.

Because the data and software are centralized at Citigroup’s host computers rather than dispersed on the client’s PCs, they can be assured that authorized users are always working with the same information and software. Since all locations worldwide will be on the same platform, all activity can be reviewed from a single location. Payments can even be initiated out of multiple branches from a single site.

Fast, Efficient and Easy to Use

CitiDirect makes transacting business easier than ever. With all critical banking applications within reach, CitiDirect frees the client to concentrate on their business rather than on software and data transfers. With CitiDirect, banking is as easy as point and click.


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There are no disks or CD-ROMs to install (in countries that prohibit installation of software from the Internet, Citi will provide a self-installable CD-ROM with security set-up files). A check through the Web can be done to see if a computer meets the minimum hardware and software requirements.

Because CitiDirect resides on Citigroup’s servers, application upgrades are instantaneous and automatic. CitiDirect’s simple, intuitive and easy-to-navigate interface makes access and use easy at every level of your organization, from clerk to Chief Executive Officer.

Banking Your Way

Customers can customize CitiDirect to meet their needs. Every user in their company can set up individual “preferences”, including the language in which information will be displayed and the date format. All application screens and help screens will appear in the selected language. Citigroup is expanding the number of languages in which CitiDirect is available.

Customers can use CitiDirect’s easy-to-use pre-formats to save time on transactions performed on a recurring basis. Customers can even determine the order in which information appears when doing an inquiry.

Online Support

CitiDirect comes with extensive online help everyone get up to speed at their own speed. If there is a question about CitiDirect or assistance is needed with one of CitiDirect’s applications, local CitiService will provide adequate support according to the standard service in each country.

CitiDirect Security

A primary objective in the development of CitiDirect Online Banking is to safeguard data during preparation, transmission, and processing by the bank. CitiDirect utilizes stringent, leading-edge security technology to protect the security of transactions. These measures, combined with security-conscious behavior by customers, such as safeguarding access information, provide the highest possible level of security.

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The security surrounding CitiDirect Online Banking is invoked automatically. CitiDirect employs a multi-tiered approach:

User Identification and Authentication.Using our standard security procedures, access to CitiDirect Online Banking is limited to specifically identified users with the use of a credit card-sized device that generates a new dynamic password with each use. Dynamic passwords greatly reduce the risk of unauthorized parties gaining access to CitiDirect by guessing or obtaining a password.

For users who have access to reporting, inquiry or netting functions, but not to transaction initiation or approval, a more streamlined security process may be desired. The latest release of CitiDirect Online Banking allows the Security Manager to choose one of two security options for a user whose access is limited to those functions.

The dynamic password challenge and response, or alternatively, a secured ID and password. The secured ID and password utilizes a User ID that does not change, and a password that the user is required to change on a regular schedule.

Regardless of the security option used, sessions are protected by SSL 128-bit encryption, and all access attempts are monitored using industry-standard techniques in intrusion detection and activity logs. In addition, firewalls are in place on all connections to the Internet to protect against unauthorized access to the internal IP network.

• User Entitlement and Authorization.CitiDirect users’ entitlements are controlled by their access profiles, which designate users’ access levels and functions within CitiDirect Online Banking. These profiles are controlled by Security Managers. Every change to a profile requires approval by a second Security Manager.

The Security Managers can reside either at Citibank-Colombia S.A. or at Citi’s customer site. Current standard model in this first stage is to have Security Managers residing in Citibank-Colombia S.A..

• Data Encryption.Sessions between identified and authorized users and Citibank-Colombia S.A. are encrypted to prevent interlopers through the use of Secure Sockets Layer (SSL) and SGC (Server Gated Cryptography) 128-bit encryption. This is the standard for financial institutions, and is enabled by specialized digital certificates to establish a secure CitiDirect session. This ensures that only authorized users can view the content of encrypted data. SGC ensures that the user is always using 128-bit encryption.


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A digital certificate is used to ensure Global Transaction Services transactions by verifying that the recipient of an electronic message is who they claim to be. The digital certificate includes the name of the certificate issuer, also known as the Certificate Authority, the entity for whom the certificate is being issued (Citibank-Colombia S.A.), Citibank-Colombia S.A.’s public key and a time stamp. The certificate is signed using a 1024 bit private key.

In addition, SSL protects the integrity of data sent over an encrypted SSL connection by using a Message Authentication Code (MAC). MAC detects whether data has been tampered with or altered while in transit during the SSL session.

The CitiDirect Online Banking CAB files also employ SSL with 128-bit encryption, and are digitally signed, verifying that Citibank-Colombia S.A. is the source of the downloaded files.

There are several Web-sites available to the public such as the sites owned and maintained by Microsoft and Netscape, which offer comprehensive explanations of SSL security.

• Audits and Alarms.Invisible and non-intrusive to you, audits and alarms are a critical component of the CitiDirect Online Banking security infrastructure, that enable the identification of unauthorized and inappropriate attempts to use CitiDirect. Through the CitiDirect Event Logging Manager, Citibank-Colombia S.A. proactively monitors usage of the CitiDirect system. All unauthorized access attempts are alerted to a central around-the-clock monitoring unit within Citibank-Colombia S.A. to allow for immediate investigation and resolution.

Additionally, Citibank-Colombia S.A. periodically tests the security mechanisms employed by CitiDirect to measure their effectiveness in preventing unauthorized intrusions.

• Secure physical environment.As a global bank, Citibank-Colombia S.A. must be able to continue business even under the most difficult of situations. The underlying technology of CitiDirect Online Banking ensures that in the event of a temporary system failure, the customer will still be able to transact with the bank.

All CitiDirect hardware has fully redundant components to avoid system problems in the event of a minor component failure. The application is run on multiple CPUs to provide load balancing and availability. If a CPU goes down, the operating system automatically moves the tasks onto another CPU with no break in processing.

CitiDirect Online Banking also utilizes redundant identical systems located in geographically distant data centers. These systems are locked in secure data center environments with

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strict access control procedures in place. Should one data center go down for any reason, the customer is automatically switched to a server at a secondary site.

The database at the secondary site is synchronized with the primary server, with transactions entering the primary server immediately propagated to the secondary server. Switching between primary and secondary sites is accomplished by pointing Web and Application servers to different database servers at either the primary or secondary sites. This configuration minimizes interruption of service in case of a site failure.

In addition, the CitiDirect Online Banking technology employs a multiple application server model, which allows it to readily scale system capacity by deploying additional servers as needed.

D. PAYABLE MANAGEMENT SERVICE

CitiDirect provides an electronic payment outsourcing solution that will allow the customer to transmit consolidated payments files from multiple accounts. The customer will have the capability to initiate payments centrally from Colombia or in another country at a Regional/Global Treasury Center. This single platform utilizes a file format “Paylink 1024”. This format can interface directly with your ERP.

Citibank PayLink through CitiDirect for your Local Payments

Citi understands that our customer intends to perform Account Payable (A/P) functions consolidating your payment management to your Treasury Center in Colombia. Citibank-Colombia S.A. can be a customer’s provider allowing them to set up the basis of a consolidated process from the start.

PayLink is an integrated local currency payments system designed for companies with significant intra-country transactional volumes and/or complex local payment structures.

CitiConnect Solution for Payments

Citiconnect is an internet platform that extends Citibank-Colombia S.A. information services to the business partners of the customer. Citiconnect online payment channel is the doorway to the whole Citiconnect family. Citiconnect will allow the customer’s beneficiaries (providers) to consult their payments status. Invoice information sent in the customer’s Paylink file is shown using Citiconnect. The customer will be able to consult the status report of the payments sent via Citidirect online banking. Via Citiconnect online payment channel for payables we offer your beneficiaries the option of accessing a web-site where your payment information will be listed.


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When the customer uploads the payment file executed by Paylink through Citidirect, the CitiConnect online channel automatically displays the payment item information. After completing a simple one-time registration, your beneficiaries can access Citiconnect and view their payment items, with different status information (i.e. Unpaid, in process, paid) and the information related with the payment item. Historical payment information is also available. Citiconnect provides an “alert” service when a new payment instruction is received at the bank. Citiconnect sends an e-mail to the beneficiary informing him that a new payment has arrived and invites him to log into Citiconnect to view its details.

Taxes & Customs Payments

Citibank-Colombia S.A. offers the option of paying Taxes and Customs duties in several ways. A customer could ask Citibank to issue a check or their company could use a special instruction in which the customer authorizes Citibank to debit a specific account if a list of conditions is complied.

Social Security Payments – SOI

Customers can use the services of Citibank-Colombia S.A. for social security contributions using the tool “SOI – Sistema de Operador de Información”. For the entities that cannot be paid with SOI, we recommend issuing a PayLink check in favor of the local social security agency and pay the agency itself or pay at those government banks designated to collect these contributions.

Mispagosaldia.com

This is an electronic platform that allows the customer to make public utilities payments as follows:

• Automatic and centralized national services, utility public payments.• Significant costs reduction on administrative services regarding public payments.• Administration of contracts with different due dates for many billers.• Your company will manage the facility of create / modify / delete public payment’s contracts.• For each contract, the system manages payment limits (maximum amount authorized).• Your company could make the stop payment of any contract.• Historical and magnetic information up to12 months.• Two security levels with Maker and checker schema.• Automatic invoice’s payment one day before due date.• E-mail information: first one when the biller presents the new invoices, the second one informing 48 hours be fore due dates and the confirmation of the payments done on due date.• Allows your Company to project the Cash flow by due dates.

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Commercial Credit Cards

Citibank offers their costumers other types of payments through credit cards as follows:• Corporate Cards: credit cards used to pay travel and entertainment expenses.• Purchasing Cards: credit cards to pay materials, office equipment, suppliers and other operative expenses.• Central Account Cards: credit cards to pay airline tickets only.

PayTM

PayTM is a flexible, secure, and efficient device that allows the customer to make payments for payroll, discounts, rebates or advances of expenses, fees, pensions, and commissions for rendered services. All this can be done using a personal prepaid card.

Citi’s prepaid card provides the possibility of making cash withdrawals and purchases at merchants affiliated to the Visa network anytime without having the obligation to open a bank account.

Main Benefits• Reduction of associated costs with the regular payment including: Issuance and delivery of checks, administration costs of payments and reimbursements, travel expenses, and fees.• Reduce the risk of custody of cash or checks.• Efficient management of cash flow.• Improving the working relationship with employees and suppliers.

E. INTERNATIONAL CASH

Citibank Online Investments (OLI)

Citibank Online Investments or OLI is a global Internet based investment system that allows clients to execute active investments into various short-term money market instruments. Clients can access OLI through CitiDirect Online Banking, TreasuryVision, or CitiBusiness Online Banking via the single sign-on functionality.

In the United States, the following products are offered through Citi OLI: Commercial Paper, Certificates of Deposit, Eurodollar Time Deposits, Repurchase Agreements, Money Market Deposit Accounts and Money Market Mutual Funds.


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Each business day, OLI opens with tradable market rates, which are updated periodically throughout the day. The client can use OLI to check current rates as well as to invest in or redeem from investments to which they are entitled. Once the trade is settled, OLI produces a confirmation of the trade. Safe keeping of securities that require custody, such as Commercial Paper, Certificates of Deposit and Repurchase Agreements, is maintained by Securities and Funds Services (SFS).

Account Services

Account Services at a high level refers to the opening and maintaining of a Demand Deposit Account (DDA) on any one of the three CitiChecking regions and the related services that are natural byproducts of operating a DDA.

Account Services, as a product category, does not include cash management services such as payments, lockbox, sweeps, etc that would create transactions ultimately posted to the DDA.

Overnight Investment Sweeps

End-of-day Overnight Investment sweeps are prevalent (other jurisdictions might have “sweeps” to off-balance sheet, other investment options to the U.S. where federal regulations prohibit the payment of interest on an institutional transaction account). Sweeps automatically invest from a customer’s DDA to an interest-bearing vehicle. Various pre-determined thresholds can limit the investment. The next business day, the customer’s principal is returned to the DDA. Sweeps are the last transaction to the customer’s account and the return of principal is one of the first transactions to their account the following business day.

WorldLink

WorldLink is a multi-currency payment business that delivers the value of Citi’s global presence and cash management processing capabilities to corporate, financial institutions, and public sector clients worldwide. WorldLink is the premier global platform for the global cash management organization within Global Transaction Services (GTS), part of the Citi Markets and Banking (CMB). WorldLink is owned and operated by Citibank Europe plc. Citibank Europe plc is a subsidiary of Citibank Holdings Ireland Ltd., which is in turn owned by Citibank Overseas Investment Corporation.

WorldLink supports client foreign exchange needs by providing them access to spot, daily, and forward FX rates through different channels such as a telephone call to a Foreign Exchange Payment Specialist or via online rates integrated in Citibank’s distribution channel (CitiDirect). All rates are confirmed via the system at the time of execution. All FX transactions, with a few exceptions, are covered by WorldLink back-to-back with the counterparty.


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TRADE SERVICES

A. DOCUMENTARY COLLECTION

Import Collections

Import Documentary Collections are a simple and inexpensive alternative to import letters of credit. Citi will handle the flow of international trade documents, primarily the bill of lading and the commercial invoice; and Citi would release payment to the exporter only against presentation of these documents.

In Import Documentary Collections, Citi does not assume any credit risk – it only acts as the intermediary in the exchange of documents for payments.

Export Collections

Export Documentary Collections are Documentary Collections viewed from the exporter’s side and are used by the Exporter to collect payment after shipping the goods and presenting the required documentation. However, the funds will not be made available to the Exporter until payment is received from the importer.

In Export Documentary Collections, the Importer’s bank does not substitute its credit worthiness for that of the Importer. Therefore, the risk for the Exporter is higher than with Export Letters of Credit.

Export Documentary Collections are a simple and cheap alternative to Export Letters of Credit for the Exporter to collect payment from the Importer. In Export Documentary Collections, the Exporter will send a bill of lading along with a cover letter to the Importer’s bank through the exporter’s bank and solicit payment. The Importer’s bank will advise the Importer and pay the Exporter only after the Importer pays. The Exporter’s bank will monitor when payment is received and credit the Exporter with the funds.

In Export Documentary Collections, the paying bank retains title of the goods until the Importer pays.



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B. LETTER OF CREDITS

Import L/C

Import Letters of Credit are Letters of Credit viewed from the importer’s perspective and a very common means of paying for goods shipped by an exporter.

Citibank substitutes its creditworthiness for that of the Importer, committing itself to pay the Exporter the amount specified under the Letter of Credit, upon presentation of certain documentation, and providing the exporter with a more reliable promise of payment than the Importer can offer.

Import Letters of Credit provide Importers with the peace of mind that payment would not be released to the exporter unless the exporter submits all documentation specified in the terms and conditions of the Letter of Credit.

Import Letters of Credit can be used by the Importer to obtain financing for its international purchases even in those cases when the Exporter itself cannot provide this financing.

Export L/C

In Export Letters of Credit Citi advises, negotiates and confirms Letter of Credit in favor of the Exporter, upon presentation of certain documentation.

Export Letters of Credit provide Exporters with the peace of mind that documentation would not be released to the Importer unless the Importer pays the amount specified in the terms and conditions of the Letter of Credit.

Export Letters of Credit can be used by the Exporter to obtain financing for its raw material purchases or production related to the export.

Export Letters of Credit facilitate the exporter in reducing their discrepancies, mitigating commercial and/or cross-border risk, and providing a secure payment vehicle to receive payments.


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C. STANDBY LETTER OF CREDIT

The standby letter of credit (SBLC) serves as a secondary payment mechanism. Citibank will issue a standby letter of credit on behalf of a customer to provide assurances of his ability to perform under the terms of a contract between the beneficiaries.

The SBLC assures the beneficiary of the performance of the customer’s obligation. The beneficiary is able to draw under the credit by presenting a draft, copies of invoices, with evidence that the customer has not performed its obligation. Citibank is obligated to make payment if the documents presented comply with the terms of the letter of credit.

SBLCs that Can Be Issued by Citi

• Commercial: For agreements related with Exports/Imports of Goods and Services.• Advance Payment: Use when an Advance payment is required by the Applicant as part of a Contract/Agreement. • Bid bond: For bid invitations purposes.• Performance: For Contracts/Agreements when the performance, quality, or delivery must be guaranteed.• Protective/ Counter: It is issued to cover a risk for a local company that needs this to cover the issuance of a local bank guarantee (that must be give issue adjust to local requirements).• Credit: To extend credit lines of a subsidiary of the Applicant. • Other: Retention Bond, Warrant Bond, Surety Bond, Insurance, Customs Bonds, Lease/ Rental and Direct Payment Standby (with a Trade advisor’s text opinion). In case that the SBLC is received by a branch by other or a different bank, to proceed to advise and/or confirm applies the same as a documentary export L/C.

D. LOCAL BANK GUARANTEES

The Local bank Guarantee (BG) serves as a secondary payment mechanism. Citi will issue a BG on behalf of a customer to provide assurances of its ability to perform under the terms of a contract between the beneficiaries.

The BG assures the beneficiary of the performance of the customer’s obligation. The beneficiary is able to draw under the credit by presenting a statement letter, draft, copies of invoices, with evidence that the customer has not performed its obligation. Citibank is obligated to make payment if the documents presented comply with the terms of the letter of credit.


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Citibank will guarantee the beneficiary in local currency or in local currency adjust to an exchange rate (COP/USD).

Bank Guarantees Issued by Citibank

• Advance Payment: Use when an Advance payment is required by the Applicant as part of a Contract/ Agreement. • Bid bond: For bid invitations purposes.• Performance: For Contracts/Agreements when the performance, quality or delivery must be guaranteed.

E. TRADE CHANNEL FINANCE

Supplier Finance Programs

Citibank finances receivables from the supplier, relying on the Buyer’s payment. Citibank will assume the credit risk of the Buyer who is the obligor of the instrument. A facility should be approved in the Buyer CA to support the Buyer payment risk. In those cases, we are financing negotiable instruments (promissory notes, invoices, etc). The Buyer’s commitment to pay is evidenced in the receivable itself. Therefore no additional document should be requested. However, in case of non-negotiable instruments, the Buyer’s commitment to pay their obligation will be documented under a payment service agreement and/or a Promissory Note.

In summary, Citibank has the primary relationship with the Buyer. An arrangement is made that provides the Buyer with payable settlement services and markets receivables finance/purchasing services to its suppliers.

Distribution/Sales Finance Program

Citibank has the primary relationship with the Supplier and enters into an arrangement to structure a facility to finance or purchase its receivables on either a one-off or programmatic basis.

A contract is signed between Citibank and the Sponsor. The contract will specify who is responsible for collecting the amount due at maturity. Citibank may also sign a contract with the Buyer, depending on the structure offered. Channel Finance, Colombia’s legal documentation, has been developed by external Legal Counsel and duly reviewed and approved by Internal Legal Counsel.

Transactions can be structured as a purchase of receivables whenever the Supplier


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generates the receivables on its books selling at term to their Buyers. Subsequently the Suppliers sell those receivables to the Bank. Another possible structure is the Supplier selling at sight to the Buyers. Within this structure, the Bank provides the Buyer with a receivables finance facility to purchase goods or services from the respective Seller. In the second structure, the receivables are never generated in the balance sheet of the Seller as the sales are executed at sight.

Cash–Trapped Distribution Finance Funding

This business model follows the same logic as the Full Recourse Distribution/Sales Finance Program. However, in this structure, the sponsor will be the one who will be directly executing the Distribution Finance transactions-invoices discount, portfolio purchase, portfolio discount, and contract discount. Upon compliance of certain previously established requirements, Citibank will fund these Channel Finance transactions directly performed by the sponsor.

Funds are disbursed to the sponsor in order to provide funding for those deals that comply with previously determined requirements.

Working Capital (Individual Deals)

This type of Business Model uses the same logic of the Distribution Finance Business Model but in an individual basis, providing liquidity to the sellers by monetizing the seller receivables.

Massive Portfolio Purchase

This type of Business Model uses the same logic of the Distribution Finance product explained above, but in an individual basis, providing liquidity to the sellers by monetizing the seller receivables.

This type of structures should be developed under the Channel Finance Distribution Financing (DIF) Credit Program Guideline. The various debtors of the portfolio should not be analyzed on a standalone basis, given that the portfolio about to be purchased is being risk evaluated. This structure should be evaluated under a portfolio approach versus a case-by-case buyer/debtor analysis.



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Massive Portfolio Discount

This type of Business Model uses the same logic of the Distribution Finance product explained above, but in an individual basis providing liquidity to the sellers by monetizing the seller receivables.

F. SECURITIES AND FUNDS SERVICES (SFS)

The SFS business in Colombia consists of a number of products that serve investor, intermediary and issuer clients. These products are global custody, fund services, direct custody and clearing, and agency and trust. Each of these products provides market leading and solutions that enable our clients to focus on their core competencies.

Citi es especialista en custodia de valores para empresas locales tanto del sector público como del sector privado, fondos de inversión extranjera e inversionistas de capital del exterior en Colombia bajo la modalidad de inversión directa. Nuestra organización tiene presencia en más de 100 países y está catalogada como el agente custodio más grande del mundo debido a que administra un portafolio de más de cinco trillones de dólares y procesa transacciones por más de un trillón de dólares.

Custodia y Administración de valores

Custodia LocalCititrust Colombia S.A. como Agente Custodio está especializado en proveer servicios integrales a inversionistas en función de su portafolio, con el propósito de garantizarles un flujo de proceso seguro y eficiente, utilizando una infraestructura tecnológica y humana altamente calificada.Principales Servicios• Acceso a nuestra plataforma electrónica GssNet para ingresar operaciones de cumplimiento de títulos valores. • Acceso a través de nuestra plataforma electrónica GssNet a reportes de portafolio de valores y al estado de sus operaciones de valores previos a su cumplimiento: • Confirmación de transacciones cumplidas y/o fallidas. • Pre-aviso y aviso de pago de intereses y/o capital. • De portafolio (valor nominal). • Reportes de efectivo. • Custodia y compensación de títulos valores a través del Depósito Centralizado de Valores Deceval o DCV. • Cumplimiento de operaciones de valores en moneda local. • Ejecución de los derechos inherentes a la inversión (rendimientos, vencimientos de capital, eventos corporativos).


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• Valoración de Portafolios siguiendo la regulación local o parámetros institucionales requeridos.

Custodia Cross BorderCititrust Colombia S.A. custodia y maneja portafolios ubicados en el exterior, brindando la experiencia y respaldo global que nuestros clientes necesitan. También administra portafolios en moneda extranjera de compañías colombianas y la relación con diferentes depósitos internacionalesPrincipales ServiciosAcceso a nuestra plataforma electrónica GssNet para ingresar operaciones de cumplimiento de títulos valores. Acceso a través de nuestra plataforma electrónica GssNet a reportes de portafolio de títulos valores y al estado de las operaciones de títulos valores previos a su cumplimiento: • Confirmación de transacciones cumplidas y/o fallidas. • Pre-aviso y aviso de pago de intereses y/o capital. • De portafolio (valor nominal). • Reportes de efectivo. • Custodia y compensación de valores a través de los Depósitos Centralizados de Valores DTC y/o Clearstream. • Cumplimiento de operaciones de valores en moneda extranjera. • Ejecución de los derechos inherentes a la inversión (rendimientos, vencimientos de capital, eventos corporativos). • Ofrecemos un manejo seguro a través de depósitos centralizados en el exterior, proporcionado una cuenta individual segregada, tecnología y sistemas de punta además de contar con personal altamente calificado.

Custodia GlobalEn Cititrust Colombia S.A. ofrecemos servicios de administración y custodia a Fondos de Inversión de Portafolio Extranjero, así como también a Fondos de Inversión Directa en Colombia desde 1.991. Nos hemos posesionado como el agente de custodia más calificado del mercado según el reconocimiento obtenido por la Revista Global Finance en 2007.

Principales ventajas• Infraestructura Operativa acorde con estándares internacionales. • Servicio integrado de administración y cumplimiento de operaciones. • Representación Legal ante las entidades de Control y los Reguladores. • Cititrust Colombia S.A. actúa como ente responsable de todo el proceso operativo. • Citi hace eficiente la recepción, custodia y entrega de valores en el mercado. • El inversionista puede acceder al mercado de capitales en Colombia a través de Cititrust Colombia S.A. sin tener que constituirse o incorporarse localmente.Servicios• Custodia de valores.


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• Administración Local (Representación Legal de los Fondos de Inversión de Portafolio Extranjero). • Cumplimiento y compensación de valores. • Representación del accionista en las Asambleas de Accionistas. • Cobro de dividendos, Intereses y redención de capital. • Ejercicio de Eventos Corporativos. • Envío de extractos de balances y movimientos de activos.

Fiducia Estructurada

Administración de TesoreríasCiti ofrece la administración y pago de los recursos de su tesorería. Por sus características este producto es ideal en situaciones en las cuales usted requiere seguridad, transparencia o independencia en el manejo de sus recursos bien sea porque estos se encuentran vinculados al desarrollo de un proyecto específico o porque esté interesado en buscar alternativas de eficiencia en el manejo de su empresa. Dentro de las actividades a cargo de la Fiduciaria se encuentran el recaudo de recursos en su fuente, la realización de pagos a proveedores, empleados y/o acreedores, y de manera general la administración de la tesorería cuando se trate de proyectos específicos.

Pricipales ventajas : • Procesos ágiles. • Procesos seguros. • Procedimientos sistematizados. • Brinda transparencia y control en el manejo de los recursos. • Permite a su empresa enfocarse en su negocio. • Facilita sus pagos a terceros. • Reduce sus procesos operativos. Créditos Sindicados & ReestructuracionesCiti soporta transacciones que involucren créditos sindicados o reestructuración de obligaciones presentes, prestando nuestros servicios como Agente del Colateral, Agente Administrativo y/o Fiduciario.

Dentro de las funciones en virtud de este tipo de servicios se encuentran (i) verificar el cumplimiento de los compromisos positivos y negativos asociados a la transacción, (ii) calcular el valor de cada una de las cuotas de capital e intereses del crédito, (iii) servir como punto de contacto entre los prestamistas y el deudor, (iv) administrar y mantener las garantías asociadas a la Transacción, (v) informar a las partes en el evento que tenga conocimiento de un incumplimiento, (vi) ante un evento de incumplimiento ejercer los derechos otorgados a los prestamistas respecto a cada una de las garantías y (vii) ejecutar o liberar las garantías asociadas a la transacción.

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Principales ventajas : • Fortalecimiento de su crédito gracias a la recordación de la marca Citi en el mercado tanto local como internacional. • Amplia experiencia en la operación de este tipo de esquemas. • Fluidez a las relaciones entre acreedores y deudor. • Garantiza una correcta y oportuna distribución de los recursos. • Fortalece la confianza de las partes. • Vela por el cumplimiento de los acuerdos y obligaciones de las partes. TitularizacionesEn Cititrust Colombia S.A. ofrecemos nuestros servicios de agentes de manejo en procesos de titularización. Dentro de las funciones a nuestro cargo en este tipo de productos se encuentran la emisión de los títulos en el mercado público, la conservación del activo titularizado, la recepción de los flujos que genere el activo titularizado, el manejo de libro de tenedores de los bonos, el repago de los títulos y la generación de informes a las diferentes partes del proceso incluidos los reguladores.

Beneficios y Ventajas del producto: • Da liquidez a partir de activos ilíquidos. • Profesionaliza la gestión administrativa de la titularización. • Fortalece la estructura de la titularización. • Garantiza el cumplimiento de las obligaciones para con los inversionistas.Operaciones de Crédito Tradicional Nos encargamos de la administración de bienes (fondos de reserva, flujos de caja futuros, títulos valores y bienes inmuebles) destinados a garantizar el cumplimiento de sus obligaciones financieras.

Dentro de las ventajas de este tipo de producto se encuentran que permite (i) garantizar varias obligaciones con varios acreedores, todos en el mismo grado de prelación, (ii) reducir los costos por la constitución de nuevas garantías a favor de nuevos acreedores y (iii) lograr un precio justo en la realización de los activos.Beneficios y Ventajas: • Hace eficiente los procesos de otorgamiento y ejecución de garantías. • Vela por la conservación de los bienes y mantiene información actualizada sobre los mismos. • Permite utilizar el activo para otorgar varias garantías, maximizando la utilización del mismo para este propósito

Financiación de ProyectosEn Cititrust Colombia S.A. ofrecemos la administración de los flujos de caja asociados a un proyecto, así como los servicios de agenciamiento en beneficio de los acreedores que participen de la transacción (agente administrativo, agente colateral y/o fiduciario).


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En virtud de este tipo de negocios (i) manejamos los flujos del proyecto a través de cuentas segregadas, (ii) monitoreamos el flujo de caja del proyecto, (iii) realizamos los pagos a proveedores para atender los costos y gastos del proyecto, (iv) atendemos el pago del servicio de la deuda, (v) presentamos reportes de los pagos efectuados a terceros en desarrollo de la transacción, (vi) actuamos en beneficio de los prestamistas en caso de incumplimiento de los créditos y (vii) monitoreamos el cumplimiento de los compromisos del proyecto.Disfrute de grandes ventajas de trabajar con nosotros: • Procesos ágiles. • Procesos seguros. • Procedimientos sistematizados. • Amplia experiencia en la operación de este tipo de esquemas. Beneficios y Ventajas: • Brinda transparencia y control en el manejo de los recursos. • Da fluidez a las relaciones entre acreedores y deudor. • Propende una correcta y oportuna distribución de los recursos. • Fortalece la confianza de las partes. • Vela por el cumplimiento de los acuerdos y obligaciones de las partes. • Facilita los pagos a terceros.

FusionesContamos con un portafolio de servicios estructurados para soportar procesos de fusiones y adquisiciones. Estamos en capacidad de operar en transacciones complejas tanto en el mercado local como en los mercados internacionales.

Dentro de nuestros servicios ofrecidos se encuentra la revisión en su forma de la documentación del proceso de compra/venta, la coordinación con el equipo local e internacional encargado de estructurar el proceso, el envío de los materiales de oferta a los respectivos accionistas, la recepción de acciones objeto de compra, la emisión de reportes diarios de las acciones recibidas, la administración de los fondos para el pago de las acciones y el pago de las acciones.

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MARKET GUIDE FOR TREASURY

Allowed —No materialrestrictions

Operating Accounts1,2 Non-Residents ResidentsOnshore local currencyOnshore foreign currencyOffshore local currency Offshore foreign currency

Overdrafts Non-Residents ResidentsOnshore local currencyOnshore foreign currency

Interest-Bearing Accounts Non-Residents Residents Onshore local currency operating accountsOnshore foreign currency operating accounts

Time Deposits3 Non-Residents ResidentsOnshore local currencyOnshore foreign currency

Domestic Notional Pooling4 Non-Residents ResidentsOnshore local currencyOnshore foreign currency

Inter-company Lending5 Non-Resident to Resident Resident toNon-residentOnshore local currencyOnshore foreign currency

Non-Residents ResidentsOnshore local currencyOnshore foreign currency

FX Convertibility/Transferability• Local currency is freely convertible domestic and offshore.

Tax and Transfer Pricing Considerations• Local Currency is freely convertible domestically only.• Subject to declaration before the Central Bank.

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Allowed —Straightforwardregulations,approval orlicense

Allowed —Challengingregulatoryapproval orlicense

Allowed —Subject to acomplex setof rules

StrictlyProhibited


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MARKET GUIDE FOR TREASURY

Central Bank and Other Regulatory Requirements• FX transactions are subject to declaration before the Central Bank.• Tax and Transfer Pricing Considerations• There is a Debit Tax (4x1000).

Other Payment and Clearing Considerations for Treasury• Offshore Accounts Management: conceptually, the mentioned regulations restrict the management of offshore balances related to exports/imports/loans/guaranties/ de rivatives which may be subject to repatriation.• Liquidity excesses and investments may be managed in a separated account that could be integrated to a pooling structure. However, we recommend a review on the mentioned regulations (Central Bank Regulations: “Resolucion Externa” 8/2000 (Art 7) and Circular DCIN 83).

For more information, please visit www.transactionservices.citi.com

Notes:1 Central Bank requires exchange declarations for any FX transaction, except for the transactions executed market through “libre mercado” (free market or not subject to declarations).2 Non-Resident local account in foreign currency is allowed but limited to some exceptions in Article 59, Number 1, Letter d, Resolution 8 of Central Bank (e.g., travel agencies, embassies, NGOs).3 Offshore TD subject to foreign exchange regulation (declaration before Central Bank).4 Tax on financial transaction (tax debit/4x1000) renders this notional poolings useless.5 Local Tax on financial transaction (tax debit/4x1000) renders physical pooling between different entities not economically viable.

C O L O M B I A

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CONTACT INFORMATION

Sales Heads

Industry Sector Heads

Carolina JuanTreasury and Trade Solutions Client Sales ManagementLatin America & Mexico HeadCiti Transaction ServicesEmail: [email protected]: + 57 (316) 743 - 9347Of. Phone: +57 (1) 639 - 4026

Industrials SectorInes Vargas BarreraEmail: [email protected]: +52 (181) 8366 - 5190Of. Phone: +52 (81) 1226 - 8525

Branding, Consumer and Healthcare SectorOscar MazzaEmail: [email protected]: +1 (305) 588 - 9396Of. Phone: +1 (305) 347 - 1336

Technology, Media and Telecom SectorGabriel KirestianEmail: [email protected]: +54 (911) 3301 - 4826Of. Phone: +54 (11) 4329 - 1516

Energy, Power and Chemicals SectorPeter LangshawEmail: [email protected]: +55 (11) 6183 - 6958Of. Phone: +55 (11) 6183 - 6958

Public SectorJorg PaascheEmail: [email protected]: +52 (1) 55 5453 - 0103Of. Phone: +52 (55) 2226 - 6020Based: Mexico DF, Mexico

Non Bank FI Sector (NFBI)Ricardo DessyEmail: [email protected]: +54 (911) 6641 - 9752Of. Phone: +54 (11) 4329 - 1471Based: Buenos Aires, Argentina

BrazilAdoniro CestariEmail: [email protected]: +55 (11) 7130 - 9447Of. Phone: +55 (11) 4009 - 7838Based: Sao Paulo, Brazil

Central AmericaEvelin MadridEmail: [email protected]: + 506 8701 - 4529Of. Phone: +506 2588 - 7541Based: San Jose, Costa Rica

MexicoMiguel YtuarteEmail: [email protected]: +52 (1) 55 4088 - 2284Of. Phone: +5255 (1226) 8895Based: Mexico DF, Mexico

Andean RegionCarolina JuanEmail: [email protected]: + 57 (316) 743 - 9347Of. Phone: +57 (1) 639 - 4026Based: Bogota, Colombia

ArgentinaAdrian ScosceiraEmail: [email protected]: +54 (911) 5674 - 6966Of. Phone: +54 (11) 4329 - 1194Based: Buenos Aires, Argentina

Citi Transaction Serviceswww.transactionservices.citi.com

© 2012 Citibank, N.A. All rights reserved. Citi and Arc Design is a trademark and service mark of Citigroup Inc., used and registered throughout the world. All other trademarks are the property of their respective owners.

BrazilAdoniro CestariEmail: [email protected]: +55 (11) 7130 - 9447Of. Phone: +55 (11) 4009 - 7838Based: Sao Paulo, Brazil

Central AmericaEvelin MadridEmail: [email protected]: + 506 8701 - 4529Of. Phone: +506 2588 - 7541Based: San Jose, Costa Rica

MexicoMiguel YtuarteEmail: [email protected]: +52 (1) 55 4088 - 2284Of. Phone: +5255 (1226) 8895Based: Mexico DF, Mexico

Andean RegionCarolina JuanEmail: [email protected]: + 57 (316) 743 - 9347Of. Phone: +57 (1) 639 - 4026Based: Bogota, Colombia

ArgentinaAdrian ScosceiraEmail: [email protected]: +54 (911) 5674 - 6966Of. Phone: +54 (11) 4329 - 1194Based: Buenos Aires, Argentina

basic data - · pdf file · 2012-07-31basic data capital city: land area:...

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