Citi Perspectives Fall 2019

Citi Perspectives  | 27 26 | Treasury and Trade Solutions Some examples of Citi’s support are: • Citi issued 17 Performance Bonds for R$656 mm — Brazil • Citi supported ANP with R$5.0 bn in Payments — Brazil • Citi supported companies with R$2.8 bn of FX for bid rounds — Brazil • Citi issued 11 performance bonds for $550 mm — Mexico • Citi supported companies with USD$7.7 mm for bid bonds rounds — Mexico • Citi secured 54% of the blocks auctioned for two bid rounds — Mexico Moreover, as energy companies and the local countries in Latin America continue to accelerate and embrace digitization, they are looking for banks to support and help with their digital transformation, evolving industry ecosystem and business models. Indeed, Citi is already working with many national and international energy companies and has developed digital solutions to support our clients’ journey with us. For example, Citi is leveraging a new digital payment method in Mexico, CoDi (Cobro Digital or Digital Collection), which is being rolled out during 2019. This will help provide real-time payments and collections from mobile devices, including supporting QR codes, request to pay (RTP), and contactless payments as a convenient alternative to cash. We are helping our energy clients capture more sales as they expand their retail gas stations and improve the purchasing experience provided to their own customers. Many countries in Latin America have recognized the need to support energy companies in their digital transformation. Citi has also implemented APIs, blockchain, and working capital — using digital solutions to support the evolving digital transformation. Across the region, energy companies are focusing on strong governance and control as they expand, looking for improved operational efficiencies, and reconciliation. Citi ® Payment Outlier Detection is another example of a digital solution for the industry to help protect against fraudulent payments. Another important aspect of transformation has been the adoption of innovative working capital solutions in Latin America by energy companies. Indeed, with Citi’s strategy and commitment of being the “World’s Working Capital Bank,” we have developed solutions on a digital platform to help our clients thrive in a competitive environment. These include Sales and Supply Chain Finance solutions, electronic Letters of Credit (LCS), and guarantees, which are able to capture end-to-end transactions through our extended global network. To succeed in this competitive, capital-intensive and increasingly digital environment, both producers and distributors, among other players, need a long-term banking partner that can support them. Having a bank with a strong presence along with a comprehensive knowledge of the industry and a cutting-edge digital vision and strategy, is essential for any expansion to prosper. “With all this change that we see in the world with artificial intelligence, digitalization, big data, blockchain, there is an enormous opportunity for innovative companies that can use those technologies to help us to develop the oil and gas sector in Brazil under this new circumstance and open market.” — Decio Oddone