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Issuer Services
As a guideline for evaluating depositary
banks, the issuer should consider
the resources and track record
of the provider, as well as its core
competencies and value-added services
that are offered.
Key Questions to ask a
Depositary Bank
Key questions include the following:
• How extensive is the depositary
bank’s expertise in securities
processing?
• Can the depositary bank offer
your company a complete range of
banking and financial products?
• How is the depositary positioned
with investors and other global
market participants?
• Does the depositary bank have local
presence and commitment to the
home market?
How to Evaluate a Depositary Bank
The depositary bank plays a critical role for issuers that wish to expand their access to capital,
broaden their investor base globally, and take advantage of all the benefits of DRs. The issuer
and the depositary bank enter into a relationship that extends through the offering process and
implementation stages and continues through to the ongoing management of the DR program.
DRs are a winning proposition for global
financial markets, benefiting non-U.S.
issuers and international investors alike.
For issuers, a DR program can serve
to broaden and diversify a company’s
shareholder base, broadening the
market for its shares and potentially
increasing liquidity. DRs are attractive
to investors worldwide who are looking
to eliminate cross-border custody
safekeeping charges and benefit from
Conclusion
• What peers in your region and
worldwide exemplify how the
depositary has managed liquid
DR programs?
• How many years of experience does
the organization have in serving DR
issuers in your region?
• What awards has the depositary
bank won that represent third-party
endorsements of its superiority over
its competitors?
The Depositary’s commitment
to Investor Relations
The breadth of value-added services
offered by a depositary can enhance a
company’s internal investor relations
(IR) effort and should be a key
consideration for the issuer in selecting
a depositary services provider. Citi
pioneered the depositary’s role of IR
counsel, delivering the expertise and
resources required for its sponsored
issuers to achieve their international
IR goals.
For example, where appropriate, a
depositary’s IR counsel may work
closely with the issuer in formulating
investor strategic plans and identifying,
targeting and accessing new investors.
IR counsel may also advise the
issuer on financial media relations,
non-deal road shows, IR website
development and the selection of
outside IR firms. The depositary may
also provide shareholder intelligence
tools, delivering comprehensive share
ownership and peer ownership data and
analytical flexibility.
enhanced accessibility to research and
price and trading information.
The depositary is a key partner for the
issuer, both in establishing a DR program
and in developing and managing the
program on an ongoing basis. The role
of the depositary includes advising on
DR facility structure, and coordinating
with lawyers and investment bankers
to ensure that all implementation steps
are completed. The critical roles of the
depositary include issuing DRs and
providing ongoing account management
and IR support to the issuer.
A crucial consideration for the issuer
in selecting its depositary is the
depositary’s experience and offerings
of value-added services, which should
complement the company’s IR effort.