MINING FORUM BANKING SOLUTIONS FOR MINING. Citibank Cameroun S.A.

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1 MINING FORUM BANKING SOLUTIONS FOR MINING Citibank Cameroun S.A. Yaoundé, May 27 th -28 th 2009 By Alain-Thierry MBONGUE,Resident Vice-President Directeur Agence de Yaounde

2 Agenda Citi at a glance Mining companies requirements Citi Banking Solutions Recent credentials

3 Citi Today

4 Citi Institutional Clients Group At A Glance Market Leading Global Footprint with Local Presence and Expertise We provide top multi-nationals with local markets access and expertise in the 100+ countries where we operate, and we provide top-tier local corporates with access to our global network, services and product expertise. Nearly 200 years of history Local presence in more than 100 countries Dedicated Global Subsidiaries Group coverage for subsidiaries of multi national companies in approx. 80 countries. GTS network linking 140+ countries Local trading desks in more than 80 countries 75% of ICG employees work outside of U.S. Connection with 400 clearing systems, creating one of the largest global financial infrastructures Comprehensive global trading and distribution platform with preeminent execution capabilities 4

5 Mining Companies Requirements Provide companies with a robust and integrated tool to make cross-border payments, transact FX manage liquidity and reporting tools; Gain transaction and pricing transparency; Streamline efficiencies by rationalizing the number of accounts; Offer a range of low-cost payment options (such as ACH and online checking); Simplify reconciliation while improving security and controls; Structure Trade solutions & ECA backed financing Seek financial advisory services and debt/equity arrangement role Provide Hedging mechanisms

6 Citi Banking Solutions

7 1. Transactional Banking Solutions

8 GTS Solutions Citi delivers solutions that enhance strategic cost management, increase payments/ collections capacity, liquidity and straight through processing Payments Payments & & Collections Collections International Payment Account (offshore) Payables and Receivables Outsourcing WorldLink Payment Services Multi-Banking Direct Debits * Teller Implants * PaylLink Cheques CitiDirect Online Banking Citi File Exchange (CFX) Technology Integration ERP System and Bank Treasury System Integration Treasury Solutions Group TreasuryVision Systems Systems & & Technology Technology CITI SOLUTIONS Treasury Treasury & & Investments Investments Liquidity Management Notional Pooling ** Target Balancing ** Overdrafts Investment Capabilities High Interest Yield Account Time Deposits Multi-Channel Access CitiDirect Online Banking Multi Banking Liquidity Desk Receivables Discounting Supplier Financing Distributor Financing Letters of Credit Documentary collections Commodity Financing Enhanced Open Account Guarantees Procurement Procurement * Where available ** Where local regulation allows 8

9 WorldLink International Payments Solution WorldLink is an electronic payments system that provides a single window for making payments in over 137 currencies across the globe. Payment Types Funds Transfers Cross-Border ACH Remote Cheques 137 currencies 11 currencies across 21 countries 32 currencies Over 25 year in Remittance and FX Experience More than 12 million payments with value of $ 575 billion in annual disbursements Over 4,000 clients across 150 countries Onsite Cheques 16 currencies China Cameroon US Senegal Destination Cash Features and functionalities Available in 190 countries and 220,000 locations Payment status The status of the payment is known throughout the payment cycle and available online Reduced use of correspondent banks in the payment solution No need to have local currency accounts to make payments in that currency Single process for wires and cheques System supports both paper-based and electronic payments Reduced transaction fees Aggregated foreign exchange requirements Foreign exchange rates are based on the total WorldLink payment volume per currency not on individual transactions Dedicated WorldLink Foreign Exchange (FX) desk CNY XAF USD XOF FX Rate FX Rate FX Rate FX Rate EUR EUR EUR EUR SINGLE EURO/USD PAYMENT Payment Amount payable Conversion EUR Equivalent 9

10 2. Trade Solutions Export & Agency Finance

11 Trade Solutions Export & Agency Finance Citi structures financing solutions that incorporate some form of support from Official Agencies. While the tendency has traditionally focused on term financing for mining, we can also leverage Agency programs for short-term financings. Trade Services Trade Services EAF Products Trade Finance Export & Agency Finance ECA Guaranteed Programs Untied Agency Guaranteed Financings Agency Direct Lending Private Insurance Backed Programs Export LC LC Re-imbursements Open Account Solutions LC Programs backed by ECA s Import collections Export collections Receivables Financing backed by ECA Receivables Financing for Commodities Trade Finance Import LCs Import Financing Export Financing Bills Discounted Receivables Finance Supplier Finance Inventory/ Financing

12 Financing Alternatives: Tied vs. Untied EAF structures financing involving agency enhanced lending and / or direct agency lending to corporate clients projects globally. Definition When to use Benefits for the client Tied Financing Financing directly linked to procurement of goods Provided by Export Credit Agencies ( ECAs ), hence bound by OECD Consensus for terms of their guarantees Excellent option when goods are primarily sourced from one country Seeking longer tenors and attractive pricing for capex investments Optimize usage of client s credit lines Lengthens tenors Typically exempt from withholding tax Diversifies funding sources, thus preserving credit lines Offers competitive pricing Visibility to future lenders or investors Untied Financing Financing linked to development or promoting FDI NOT related to procurement of goods Provided by various Official Agencies called Development Finance Institutions (DFIs), more recently also by select ECAs Highly developmental projects of an industry or of the financial markets When goods are sourced from a multitude of countries Agencies are more flexible in the types of transactions they can participate in Focus is less on national production but national interest Pricing is generally at market terms and tenors can extend up to 20 years with generous grace periods (e.g. 36 months) General availability in LCY Sometimes potential for mezzanine positions Product breadth much wider than that of tied financing Useful addition in large capex strategies with multi-country sourcing

13 4. Recent credentials

14 Citi: Landmark Metals & Mining Transactions R10 WEDNESDAY, JANUARY 2, 2008 THE WALL STREET JOURNAL. YEAR-END REVIEW OF MARKETS & FINANCE Largest Mining Deal Ever Unconsummated Biggest World-Wide Deals Ranked by deal value when announced; excludes net debt of target companies Acquirer (Country) Target (Country) Deal Value ($ in billions) BHP Billiton (Australia) Rio Tinto (U.K.)* Group of European Cos. + ABN-AMRO Holding (Netherlands) 99.4 Rio Tinto (U.K.) Alcan (Canada) 37.6 Investor Group (Canada) BCE (Canada)* 35.3 Joint Advisor on Acquisition of Investor Group (U.S.) TXU (U.S.) 32.1 Unicredito Italiano (Italy) Capitalia (Italy) 29.5 Investor Group (Italy) Endesa (Spain) 26.4 US$189.0 bn Kohlberg Kravis Roberts (U.S.) First Data (U.S.) 25.7 Atlantis Holdings (U.S.) Alltel (U.S.) 25.1 Bank of America (U.S.) ABN AMRO North America (U.S.) 21.0 Note: Excludes spinoffs, withdrawn deals and open-market purchases. * Pending transactions + Royal Bank of Scotland, Fortis & Banco Santander. Source: Wall Street Journal and Thomson Financial. Wednesday, January 2,

15 Metals & Mining Experience: Pending Pending Pending Pending May 2009 Sole Financial Advisor on Acquisition of Sole Advisor on Acquisition of Sole Advisor on Acquisition of Jacobs Ranch Mine from Sole Advisor on Sale of Conditional 51% Stake to Senior Notes Offering US$2.0 bn A$572 mm US$761 million US$1.5 bn US$2.2 bn May 2009 May 2009 May 2009 May 2009 April 2009 Common Equity Offering Co-Bookrunner on Convertible Notes Offering Co-Bookrunner on Common Equity Offering High Yield Notes Offering Co-Manager on Common Equity Offering US$457 mm US$700 mm US$3.5 bn US$4.2 bn US$692 mm April 2009 March 2009 March 2009 March 2009 March 2009 Co-Manager on Convertible Notes Offering Senior Notes Offering Common Equity Offering Convertible Notes Offering Senior Notes Offering US$863 mm US$700 mm US$788 mm US$500 mm US$750 mm 10

16 Metals & Mining Experience: (Cont d) March 2009 February 2009 January 2009 January 2009 Unconsummated Senior Notes Offering Sole Sponsor and Joint Bookrunner on Initial Public Offering Common Equity Offering Convertible Notes Offering Sole Financial Advisor on Sale to US$3.3 bn US$132 mm US$1.3 bn US$518 mm US$9.4 bn Unconsummated November 2008 October 2008 August 2008 August 2008 Joint Advisor on Acquisition of Joint Advisor on Successful Defense from Rights Offering Joint Advisor on Acquisition of Exchangeable Bond Offering US$189.0 bn US$11.0 bn US$1.0 bn US$1.3 bn US$483 mm August 2008 August 2008 August 2008 July 2008 July 2008 Eurobond Offering Sole Dealer Manager on Tender Offer and Consent Solicitations Joint Advisor on Sale to Bond Offering Follow-On Equity Offering US$1.5 bn US$420 mm US$1.1 bn US$1.3 bn US$12.2 bn 11

17 Metals & Mining Experience: (Cont d) July 2008 July 2008 July 2008 July 2008 June 2008 Sparrows Point Senior Notes Offering Sole Advisor on Sale to Joint Advisor on Acquisition of Joint Lead Placement Agent on Debt Private Placement Joint Lead Arranger and Bookrunner on Asset Based Revolving Credit Facility US$1.5 bn US$1.5 bn US$331 mm US$350 mm US$450 mm June 2008 June 2008 June 2008 May 2008 May 2008 Joint Advisor on Sale to Senior Notes Offering Initial Public Offering Sole Bookrunner on Notes Offering Senior Solicitation Agent for Series Z First Mortgage Bonds A$6.1 bn US$1.0 bn US$332 mm US$480 mm US$423 mm May 2008 May 2008 May 2008 May 2008 May 2008 Senior Notes Offering Convertible Senior Notes Offering Senior Notes Offering Joint Lead Manager on Public Offering Initial Follow-On Equity Offering US$289 mm US$200 mm US$500 mm US$2.0 bn US$2.0 bn 12

18 THANK YOU!!!