Global Citizenship Report 2017

Many of the programs described in this report rely on a range of partnerships — with clients, governments, NGOs, academic institutions, and companies ranging from startups to large multinational corporations — to succeed. These partnerships highlight how our work contributes directly to SDG 17 , which seeks to strengthen the means of implementation and revi- talize the global partnership for sustainable development . In particular, Citi’s efforts contribute to target 17.3 , which seeks to mobilize additional financial resources for developing countries from multiple sources, including the private sector, to ensure sufficient financing is available to achieve the SDGs. SDG SPOTLIGHT: GOAL 17 Partnerships for the Goals Innovative Local Government and Community Change Agents Over the past several years, the role that local government and community organizations play in creating thriving neigh- borhoods has expanded greatly from simply ensuring that basic services are available to residents. Now, more than ever, they are expected to serve as “change agents” and drivers of innovation, addressing a wide array of issues that impact residents, including infrastructure, employment, housing and financial health. Moreover, they often do so while facing significant budget and resource constraints. Increased collab- oration and investment in innovative, efficient solutions can help local governments and community organizations address long-standing challenges and economic trends in new ways. Public-Sector and Institutional Funding Globally through Citi’s Public Sector Group, and in the U.S. through our Municipal Securities Division, we provide a broad range of banking and financial products and services, advice and support to public-sector clients, such as government agencies, central banks, development organizations, NGOs and academic institutions, to enable them to more effectively provide critical services to local communities. DE-RISKING DEVELOPMENT DEBT Local governments and large institutions in emerging and frontier markets often rely on hard-currency loans from supranational organizations, such as The World Bank Group, to fund growth and development. Holding foreign currency debt can expose these countries to foreign exchange risks that can lead to severe financial repercussions when exchange rates fluctuate. However, these countries often also suffer from underdeveloped or nonexistent swap markets and local debt capital markets that limit their ability to hedge such risks. Through Citi’s global footprint and relationships with governments, supranationals and investors, we are able to help clients in emerging markets by identifying favorable market conditions and enabling them to “de-dollarize” debt — convert supranational hard- currency loans to local currency debt, mitigating foreign exchange risk and promoting the development of swap markets in the country. For example, in 2017, Citi executed a $144 million, 10-year cross-currency swap with the Inter-American Development Bank (IADB) that allowed the IADB to re-denominate outstanding debt from U.S. dollars to local currency for the Instituto Costarricense de Electricidad, the Costa Rican government-run electricity and telecommunications services provider. The transaction constitutes the first public-sector debt de-dollarization in Costa Rica. Citi 2017 Global Citizenship Report 89 CONTENTS    INTRODUCTION    HOW WE DO BUSINESS    SOLUTIONS FOR IMPACT     APPENDICES Environmental Finance    Inclusive and Resilient Communities