The Role of the Depositary Bank

16 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.