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OpenLendSM Solutions

Custodial Lending

Citi acts as agent to lend clients’ assets held in custody with Citi. Loans are executed and settled with approved borrowers and collateral managed by Citi pursuant to a specific guidelines provided by the lender.

Third-Party Lending

Citi acts as agent to lend clients’ assets held in custody with a third-party custodian. Loans are executed with approved borrowers and collateral managed pursuant to specific guidelines provided by the lender and separate operations procedures agreed with the lender’s custodian. Lent securities are typically delivered to Citi for settlement (though settlement may be made directly by the lender’s custodian).

Exclusive Lending

Citi acts as agent to lend clients’ assets held in custody or by third-party custodians and provides clients with a guaranteed income stream under an arrangement with our Prime Services Group and other borrowers. To facilitate exclusive lending Citi conducts portfolio auctions on behalf of clients utilizing our extensive knowledge and understanding of the borrower community. Our auctions will provide clients with a high level of transparency throughout the bidding process. The client has the flexibility to auction all or part of a portfolio and to customize the manner in which these auctions are managed. Citi will handle the contract negotiation and offer seamless implementation to get the arrangement live and operational. Upon completion of the auction process, the maintenance of the portfolios will be performed by our experienced team and relationship managers.

Hybrid – Combination of Agent and Exclusive Structure

Our Hybrid offering allows lenders to participate in a traditional securities lending program while benefiting from the guaranteed income stream associated with an exclusive structure. Consistent with our OpenLendSM philosophy, clients can elect to have a portion of their portfolio lent under the Traditional Securities Lending platform.

The combination of the two lending strategies provides a client the ability to lock in a guaranteed income stream and the ability to take advantage of opportunities when securities trade at a higher than expected premium. Additionally, the Hybrid solution not only provides the client with the ability to benchmark the performance of their loans under the Traditional program versus the Exclusive program but also give a client greater control of insight into how to tailor their program in a way that best suits their risk/return objectives.

Auctions

Citi can facilitate and conduct portfolio auctions on behalf of clients by utilizing our extensive knowledge and understanding of the borrower community. Our auctions will provide clients with a high level of transparency throughout the bidding process and also highlight our ability to attain the best possible bids for our lenders. The client has the flexibility to auction all or part of a portfolio and to customize the manner in which these auctions are managed.

Citi will handle the contract negotiation and offer seamless implementation to get the arrangement live and operational. Upon completion of the auction process, the maintenance of the portfolios will be performed by our experienced team and relationship managers. Lenders will enjoy all of the same OpenLendSM program advantages with the added benefits of guaranteed income.

Socially Responsible Investing

As the concept of sustainability gains broadening appeal, investors are increasingly demanding an investment approach to consider environmental, social and governance (ESG) factors, while ensuring that portfolio performance objectives are met. Participation in a structured securities lending program with specialized solutions for socially responsible investors enables clients to optimize portfolio returns while satisfying commitments to social and sustainability goals. OpenLendSM for Socially Responsible Investors allows clients to tailor cash collateral investment in accordance with the ESG factors that are most important to them.

OpenLendSM supports any of the above solutions and bespoke variations based on an analysis of a client’s requirements.

Where Does Citi Lend?

In 1978, Citi began securities lending on behalf of clients. Today, we are a leading securities lending agent by geographical reach, operating in 72 markets (37 equity and 35 fixed income) around the world. Our unparalleled reach is possible because of our 59 proprietary branches. These branches provide Citi and our clients with on the ground, accurate, and timely information on market developments. Partnering with Citi will give you the opportunity to expand your lending to new markets and add depth to markets where we foster strong borrower relationships.