Srbija – Municipalne obveznice

Strictly Private and Confidential

May 2008

Sadržaj

1. Tržište municipalnih obveznica (Eurobond) 1

2. Tehnička i pravna pitanja 2

3. Izabrani “Case Studies” 6

4. Uspesi Citibanke na tržištima kapitala 9

1. Tržište municipalnih obveznica (Eurobond)

Izdavalac Datum izdavanja ValutaIznos (mn) Kupon Dospeće

Province of Buenos Aires 13 Jul 2000 US$ 100 12.750% 01 Aug 2003

City of Moscow 24 Sep 2004 EUR 374 6.450% 12 Oct 2011

City of Kyiv 24 Oct 2005 US$ 250 8.000% 6 Nov 2015

Province of Neuquen 11 Oct 2006 US$ 125 8.656% 18 Oct 2014

City of Moscow 13 Oct 2006 EUR 407 5.064% 20 Oct 2016

Province of Neuquen 18 May 2007 US$ 125 8.656% 18 Oct 2014

City of Bogota 19 July 2007 COP 579 9.750% 26 July 2028

City of Kyiv 19 Nov 2007 US$ 250 8.250% 26 Nov 2012

Odabrane municipalne transakcije koje je predvodila Citibanka

1 Eurobond Municipal Market

2. Tehnička i pravna pitanja

Troškovi i prednosti izdavanja Eurobond-a

Koraci i pitanja prilikom izdavanja Eurobond-a Ekonomska spremnost i kapacitet da se efikasno koriste sredstva prikupljena kroz municipalne obveznice Izgradnja podrške zvaničnih donatora, supra nacionalnih zajmodavaca i vlade kako bi se osiguralo da je

emisija municipalnih obveznica u skladu sa njihovim ciljevima, a kako bi se obezbedilo da se koncesionalna sredstva ne smanjuju u budućnosti

Fokusirati investitore na konkretan slučaj i pravilno ga “izgraditi” Obratiti pažnju na rejting Opcije koje maksimiziraju održivost plana otplate

Zašto uzeti u obzir izdavanje Eurobond-a? Izlaže ekonomsku politiku i političku situaciju tržišnoj

valorizaciji Raznovrsnost izvora finansiranja i potvrda da je moguće

tržišno finansiranje Obezbeđuje podatke na osnovu kojih je moguća procena

rizika prilikom analize budućih investicija Povećava fleksibilnost prilikom planiranja izvora

finansiranja u poređenju sa isključivim oslanjanjem na uobičajene izvore finansiranja

Troškovi u vezi sa inostranim pozajmicama Rizik strane valute. Ako je dug u stranoj valuti a prihodi

su u dinarima, depresijacija dinara bi izazvala teškoće u servisiranju duga

Odluke opštine bi bile pod budnim okom investitora koji bi ih nekada možda kritikovali bez da su baš dobro razumeli sve činjenice

Menadžment opštine će morati da posveti određeno vreme investitorima i razvoju odnosa sa njima

2 Tehnička i pravna pitanja

Tehnička pitanja

Pitanja Značaj

Vreme Volatilnost tržišta koja je posebno vidljiva u poslednje vreme ističe značaj plasiranja emisije u pravom trenutku.

RejtingJavni kreditni rejting daje investitorima komparativni indikator koji im omogućava da procene rizik i odrede mu cenu. Potrebno je dobiti rejtinge bar dve međunarodne agencije (S&P, Fitch or Moodys). Citi pomaže svojim klijentima u dobijanju rejtinga i detaljno ih priprema za proces.

VeličinaVeličina emisije koja se preporučuje (kako bi se postigla najbolja cena i zainteresovao najveći spektar investitora) je ekvivalent EUR 300 - 500 miliona. Dobro je da veličina emisije bude fleksibilna kako bi se, kroz praćenje potreba investitora, mogla prilagođavati.

Format RegS omogućava da se emisija ponudi investitorima iz Evrope i Azije, dok pristup američkim investitorima zahteva RegS/144A format.

Rok Odluku o ročnosti je najbolje doneti nakon što se izvrši preliminarno skeniranje potencijalnih investitora i njihovih potreba.

Pravni faktori Najviše zavise od formata emisije, a obično se koristi englesko zakonodavstvo.

Listing Bira se u skladu sa ciljnom grupom investitora i troškovima emisije.

Postoji nekoliko najznačajnijih pitanja i strategija koje treba razmotriti kako bi se postigli ciljevi emisije i besprekorna egzekucija transakcije.

3 Technical and Legal Considerations

Proces izdavanja prvog Eurobond-a Proces izdavanja Eurobond-a sastoji se iz tri faze: prikupljanje dokumentacije, marketing i određivanje cene. Bazirano na našim prethodnim iskustvima, proces izdavanja Eurobond-a za izdavaoca koji se po prvi put pojavljuje na tržištu traje ne više od 10-12 nedelja.

Faza 1 Faza 2 Faza 3 Faza 4

Dokumentacija Izbor pravnog savetnika i nacrt dokumentacije

Due diligence sastanci Finalizacija dokumentacije Odobrena dokumentacija se šalje investitorima

Marketing Formuliše se investiciona teza Roadshow prezentacija i planiranje (pre-marketing)

Roadshow, sastanci sa investitorima, ciljana prodaja

Određivanje cene Prikupljanje povratnih informacija od investitora

Izdavalac i Citibank se dogovaraju o inicijalnoj ceni

Bazirano na finalnoj knjizi porudžbina Izdavalac i Citibank se dogovaraju o finalnoj ceni i lansiranju Eurobond-a

Izbor Lead Manager-a

Dogovor o Mandatnom pismu

Due Diligence

Kreditni

Pravni i finansijski

Priprema dokumentacije

Finalizacija uslova emisije

Objava & Roadshow Book building

Marketing Priprema materijala

Početak radaDodatna podrška

X

Nedelje 1-3 Nedelje 4–8 Nedelje 9-10

Izbor Dokumentacija Marketing, Lansiranje i određivanje cene

Cena

Tržišna procena & evaluacija

4 Technical and Legal Considerations

Ključni faktori rejtinga

9

Credit Rating of the City of Belgrade

Statutory framework for debt issuanceOverall size and structure of debtLiquidity profile / debt servicing ability

Constitutional powersFiscal Flexibility Expenditure obligationsBorrowing authorityRelations with Central Government; existence / degree of oversight controls

Strength of the economyRecent fiscal performanceAbility to generate revenuesRegulatory environmentStock of human / physical capitalDemographics and social issuesDegree of sectoral diversification Probability of extraordinary support from

Government; higher the probability, higher will be the positive impact on final rating

Debt Profile & Liquidity

Institutional Framework

Economic Fundamentals

Government Support

Nature of revenuesLevel of volatilityBreadth / structure of tax baseReliance on government resourcesExpenditure obligations; flexibility available to alter size / timing

Ability of government to formulate policy and pass on to the local governmentAn assessment of the political dynamics and the social climate in which the government operates

Budgetary Structure & Support

Politics & Management

9

Credit Rating of the City of Belgrade

Statutory framework for debt issuanceOverall size and structure of debtLiquidity profile / debt servicing ability

Constitutional powersFiscal Flexibility Expenditure obligationsBorrowing authorityRelations with Central Government; existence / degree of oversight controls

Strength of the economyRecent fiscal performanceAbility to generate revenuesRegulatory environmentStock of human / physical capitalDemographics and social issuesDegree of sectoral diversification Probability of extraordinary support from

Government; higher the probability, higher will be the positive impact on final rating

Debt Profile & Liquidity

Institutional Framework

Economic Fundamentals

Government Support

Nature of revenuesLevel of volatilityBreadth / structure of tax baseReliance on government resourcesExpenditure obligations; flexibility available to alter size / timing

Ability of government to formulate policy and pass on to the local governmentAn assessment of the political dynamics and the social climate in which the government operates

Budgetary Structure & Support

Politics & Management

5 Technical and Legal Considerations

3. Izabrani “Case Studies”

Grad Bogotá – Detalji transakcije

Issuer: City of Bogotá

Form: 144A/Reg S

Issue Rating: Ba1/BB+/BB+

Amount: COP 578,577 mm (US$ 300 mm equivalent)

Final Maturity: July 26, 2028

Amortization: July 26, 2026 – July 26, 2027 – July 26, 2028

Average Life: 20 years

Denomination Currency: Colombian Peso

Coupon: 9.75%

Yield: 9.75%

Price: 100.000%

Intl Benchmark: Global TES 2027 – 8.97% Yield

Spread vs Intl Benchmark: 78 bps

Local Benchmark: Global TES 2020 – 9.75% Yield

Spread vs. Local Benchmark: 0 bps

Interest and Principal Payments: Principal and interest payments are made in U.S. dollars, calculated by the calculation agent by translating the Colombian peso amounts into U.S. dollars at the 5-day average of the representative market rate (“TRM”)

Denominations: COP 200,000,000 / COP 1,000,000

Listing: Luxembourg Euro MTF

Citigroup Role: Joint Bookrunner

Finalni uslovi

U četvrtak, 19. jula 2007, Citi je odredio cenu za obveznicu grada Bogote denominiranu u kolumbijskim pezosima, a vrednu USD 300 miliona. Ovo je bio prvi put da se izdaje obveznica u kolumbijskim pezosima a da je nije izdala država Kolumbija. Transakcija je bila izuzetno uspešna, a tražnja za obveznicama je bila 6,2 x veća od ponude.

Citi je 13. jula najavio USD 300 mm ekvivalent obveznicu grada Bogote u kolumbijskim pezosima. U tom trenutku je nekoliko obveznica bilo povučeno sa tržišta usled jako volatilne situacije i prevelike ponude.

Ova obveznica je obeležila povratak grada Bogote na međunarodna tržišta kapitala.

Transakcija je marketovana globalno, u četiri grada: London, Los Angeles, Boston, i New York. Nakon sastanaka sa velikim brojem investitora pristigao je neverovatan broj porudžbi usled koga je “book” porastao na preko US$ 1,800 mm

Tražnja za obveznicama je bila ogromna, 6,2 puta veća od ponude,a uz to jako kvalitetna: nalozi su stizali od vrlo kvalitetnih “real money” investitora.

Ovoliko interesovanje omogućilo je Bogoti da smanji kamatnu stopu koju su nudili sa inicijalnih 9.875% na 9.75%.

Vrlo je zanimljivo da je cena koju je ostvarila Bogotá bila 10 bps niža od cene koju je postigla Kolumbija za sličnu obveznicu svega mesec dana ranije.

6 Selected Case Studies

34%

31%

12%

6%

4%

13%

UK

Germany/Austria

Italy

France

Benelux

Others

Grad Moskva: €407 miliona 10-godišnja Reg S obveznica

Uslovi ponude

Guarantor: City of Moscow

Offered Securities: Reg S, Loan Participation Notes (“LPN”)

Principal Amount: € 407 Million

Ratings: Baa2/BBB+/BBB+

Maturity: 20-October-2016

Issue Date: 13-October-2006

Coupon: 5.064% (Annual, ACT/ACT)

Re-offer Yield: 5.064%

Spread vs. Benchmark: +125.9 bps vs. DBR 4% due July-2016

Spread vs. Russia +15 bps

Spread vs. Mid-Swaps: MS + 102 bps

Listing: Swiss Stock Exchange

Joint Bookrunners: Citigroup / DB / Dresdner / JPM

Poreklo investitora

Detalji transakcijeKao najjači i najvažniji region Rusije sa velikom stopom rasta, Moskva

(grad u koji se sliva oko 38% ruskih FDI) je lako privukao veliki broj investitora zainteresovanih za ovu transakciju.

Pošto se Moskva relativno retko pojavljuje kao emitent, ova transakcija koju je predvodila Citibanka je usled svoje retkosti bila dodatno atraktivna.

Investitori su naručili obveznica u vrednosti od oko €1.85 Billion, i to njih preko 170.

Cena koja je postignuta bila je samo 15bps veća od cene koju je postigla Rusija.

To je veliki napredak u odnosu na prethodnu emisiju iz 2004. godine, a koja je postigla cenu od 6,45% što je bilo oko 50bps više od cene koju je postigla Rusija.

Offering Moscow € 6.45% 2011 Moscow € 5.064% 2016

Issue Date: 24-Sept-2004 13-Oct-2006

YTM (%): 6.450% 5.064%

Spread vs. Russia: +50 bps +15 bps

Spread vs. Bunds: +286 bps +126 bps

7 Selected Case Studies

4. Uspesi Citibanke na tržištima kapitala

“In the year of the jumbo CIS deal, one transaction stood

out in 2008. The debut bond from KazMunayGas (KMG)

was the largest ever non-sovereign bond from the Central

and Eastern Europe region, the largest debut bond from

the region and – with the exception of Russia’s exchange

deals – the largest ever bond from the CIS.

Citi [was] rightly proud of [its] role as joint bookrunner for

the landmark Baa1/BBB-/BBB rated issue, which was

widely marketed in the US, Asia and London.”

IFR Awards 2008On 13th December, IFR awarded Citi the EEMEA Bond House of the Year and the EEMEA Bond of the Year prizes, acknowledgement of Citi’s unrivalled excellence in the Capital Markets business.

EEMEA Bond of the Year 2008

2008 WINNERCITI

EEMEA Bond House of the Year 2008

2008 WINNERCITI

“Among its standout achievements, Citi did more deals in

more countries in the EEMEA space than any other

bookrunner. It was number one corporate bond house,

with US$3.135bn of Eurobond volumes; number one in

Russia and Russia/CIS; and the only bond house with a

top three position within the corporate, FI and sovereign

sub-sectors.”

2002 2004 2006 2008

EEMEA Bond House of the Year

9 Citi’s Capital Markets Credentials

Rank Bank

Rank Mkt Rank Mkt Rank Mkt Rank Mkt

1 1 25.2% 1 11.8% 1 14.4% 3 10%

2 Deutsche Bank 3 18.8% 3 10.0% 2 11.8% 1 11%

3 JP Morgan 6 15.8% 6 6.3% 4 7.8% 4 8%

4 Societe Generale na 8.2% na na na na na na

5 BNP Paribas 7 8.6% 7 6.3% na na na na

Q1 2009 200620072008

Rank Manager Vol ($mil) Deals Share

1 $2,670.8 5 25.2%

2 Deutsche Bank AG $1,993.3 3 18.8%

3 JP Morgan $1,679.7 3 15.8%

4 Societe Generale $871.4 2 8.2%

5 BNP Paribas SA $508.8 1 8.6%

- Industry Total $10,616.5 7 100.0%

Citi’s DCM Leadership in CEEMEADCM League Table – Q1 2009 Citi-Led CEEMEA Bonds – Q1 2009

Historic League Tables – Sustained Leadership Deal Highlights – Q1 2009

Abu DhabiUS$1,500 mm

6.750% due 2019

2009

IsraelUS$1,500 mm

5.125% due 2019

2009

Israel ElectricUS$500 mm

9.375% due 2020

2009

Republic of Poland€1,000 mm

5.875% due 20142009

Republic of TurkeyUS$1,000 mm

7.500% due 20172009

LM – Q1 2009

Modified Dutch Auction Tender Offer€400mn & €300mn

2009

Russian Private Bank

Open Market Purchase

2009

EMEA Bond House 2008 EMEA Bond of the Year 2008

Best EM Debt House 2008

1st US$ CEEMEA Sovereign:

1st EUR CEEMEA Sovereign:

Only CEEMEA Corporate:

Largest US$ CEEMEA Sovereign:

Most successful LM deal:

Abu DhabiUS$1,500 mm

5.500% due 2014

2009

10 Citi’s Capital Markets Credentials

Selected Recent Citi-led Sovereign New Issues

Issuer ParentDeal Pricing

Date CurrTranche Value (Local)

(Face) Coupon Maturity Date

Republic of the Philippines 9 Jan 2007 US$ 1,000 6.375 15 Jan 2032

Hellenic Republic 10 Jan 2007 EUR 5,000 4.300 20 Jul 2017

Republic of Indonesia 7 Feb 2007 US$ 1,500 6.625 17 Feb 2037

Republic of Peru 23 Feb 2007 US$ 1,202 6.550 14 Mar 2037

Republic of Peru 23 Feb 2007 US$ 85 8.750 21 Nov 2033

Republic of Peru 23 Feb 2007 US$ 833 8.375 3 May 2016

Government of Jamaica 8 Mar 2007 US$ 350 8.000 15 Mar 2039

Federative Republic of Brazil 20 Mar 2007 BRL 750 10.250 10 Jan 2028

Kingdom of Sweden 26 Apr 2007 US$ 500 4.500 7 Feb 2011

Republic of Trinidad & Tobago 10 May 2007 US$ 150 5.870 17 May 2027

Republic of South Africa 17 May 2007 US$ 1,000 5.875 30 May 2022

Islamic Republic of Pakistan 24 May 2007 US$ 750 6.875 1 Jun 2017

Republic of Italy 5 Jun 2007 US$ 2,000 5.375 12 Jun 2017

Republic of Colombia 12 Jun 2007 COP 1,924,515 9.850 28 Jun 2027

Kingdom of Spain 13 Jun 2007 EUR 4,000 4.900 30 Jul 2040

Ukraine 18 Jun 2007 US$ 500 6.385 27 Jun 2012

Kingdom of Morocco 20 Jun 2007 EUR 500 5.375 27 Jun 2017

Republic of Austria 5 Jul 2007 US$ 100 3.250 25 Jun 2013

Arab Republic of Egypt 12 Jul 2007 EGP 6,000 8.750 18 Jul 2012

Republic of Peru 20 Jul 2007 PEN 4,750 6.900 12 Aug 2037

Emirate of Abu Dhabi 26 Jul 2007 US$ 1,000 5.500 2 Aug 2012

Republic of Turkey 26 Sep 2007 US$ 1,250 6.750 3 Apr 2018

Republic of Ghana 27 Sep 2007 US$ 750 8.500 4 Oct 2017

Republic of Italy 16 Oct 2007 EUR 5,000 5.000 1 Aug 2039

Republic of Hungary 18 Oct 2007 JPY 25,000 2.110 26 Oct 2017

Ukraine 7 Nov 2007 US$ 700 6.750 14 Nov 2017

Issuer ParentDeal Pricing

Date CurrTranche Value (Local)

(Face) Coupon Maturity Date

Gabonese Republic 6 Dec 2007 US$ 1,000 8.250 12 Dec 2017

Kingdom of Belgium 22 Jan 2008 EUR 4,000 4.000 28 Mar 2018

Hellenic Republic 22 Jan 2008 EUR 4,000 2.300 25 Jul 2030

Kingdom of Spain 12 Feb 2008 EUR 5,000 4.100 30 Jul 2018

Republic of Turkey 27 Feb 2008 US$ 1,000 7.250 5 Mar 2038

Kingdom of Spain 7 May 2008 US$ 2,000 3.625 17 Jun 2013

Republic of Panama 2 Jun 2008 US$ 235 7.250 15 Mar 2015

Republic of Portugal 3 Jun 2008 EUR 3,000 4.950 25 Oct 2023

Republic of Hungary 5 Jun 2008 EUR 1,500 5.750 11 Jun 2018

Republic of Poland 13 Jun 2008 EUR 2,000 5.625 20 Jun 2018

Kingdom of Spain 9 Jul 2008 US$ 2,000 3.375 18 Jul 2011

Ireland 4 Nov 2008 EUR 4,000 4.000 11 Nov 2011

Republic of Turkey 7 Jan 2009 US$ 1,000 7.500 14 Jul 2017

Kingdom of Sweden 15 Jan 2009 US$ 2,000 1.875 23 Mar 2012

Hellenic Republic 21 Jan 2009 EUR 5,500 5.500 20 Aug 2014

Republic of Poland 22 Jan 2009 EUR 1,000 5.875 3 Feb 2014

Kingdom of Spain 26 Feb 2009 US$ 1,000 2.750 5 Mar 2012

State of Israel 26 Feb 2009 US$ 1,500 5.125 26 Mar 2019

Republic of Finland 16 Mar 2009 EUR 6,000 3.125 15 Sep 2014

Emirate of Abu Dhabi 1 Apr 2009 US$ 1,500 5.500 8 Apr 2014

Emirate of Abu Dhabi 1 Apr 2009 US$ 1,500 6.750 8 Apr 2019

Republic of Korea 8 Apr 2009 US$ 1,500 5.750 16 Apr 2014

Republic of Korea 8 Apr 2009 US$ 1,500 7.125 16 Apr 2019

Republic of Colombia 14 Apr 2009 US$ 1,000 7.375 18 Mar 2019

Kingdom of Sweden 28 Apr 2009 EUR 4,000 3.125 7 May 2014

11 Citi’s Capital Markets Credentials

Select Track Record of Debut Bond UnderwritingSince these select inaugural issues, Citi has been helping these sovereigns extend their yield curves.

The Gabonese RepublicJoint Bookrunner – US$1,000mn (10-year)Issued: December 2007

The Republic of GhanaJoint Bookrunner – US$750mn (10-year)Issued: Sep 2007

The Emirate of Abu DhabiJoint Bookrunner – US$1,000mn (10-year)Issued: July 2007

The Arab Republic of Egypt (Debut Global EGP issue)Joint Bookrunner – EGP6,000mn (5-year)Issued: Jul 2007

The Republic of IraqJoint Bookrunner – US$2,700mn (22-year)Issued: January 2006

The Republic of MacedoniaSole Bookrunner – US$150mn (10-year)Issued: Dec 2005

The Kingdom of Bahrain Joint Bookrunner – US$500mn (5-year)Issued: 2003

The Republic of PeruJoint Bookrunner – US$500mn (10-year)Issued: 2002

Bank of England (First US$ Issue)Joint Bookrunner – US$2,000mn (3-year)Issued: 2002

The Republic of HungaryJoint Bookrunner – US$750mn (7-year)Issued: 1999

The Republic of El SalvadorSole Bookrunner – US$150mn (7-year)Issued: 1999

Central Bank of the Philippines (Bangkok Sentral ng Pilpinas)Citi remains Ratings adviserSole Bookrunner – US$500mn (30-year)Issued: 1997

The Government of JamaicaSole Bookrunner – US$250mn (7-year)Issued: 1997

The State of IsraelSole Bookrunner – US$400mn (10-year)Issued: 1997

The Republic of IndonesiaSole Bookrunner – US$400mn (10-year)Issued: 1996

The Hellenic RepublicJoint Bookrunner – US$500mn (5-year)Issued: 1994

The Republic of TurkeyCiti has remained top Lead Manager of Turkey Intl Bonds sinceJoint Bookrunner – US$250mn (10-year)Issued: 1992

Federation of MalaysiaSole Bookrunner – US$200mn (10-year)Issued: 1990

The Kingdom of ThailandAlso Executed 1992 and 1997Sole Bookrunner – US$200mn (10-year)Issued: 1989

The Republic of ColombiaSole Bookrunner – US$50mn (7-year)Issued: 1987

12 Citi’s Capital Markets Credentials

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Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.