Capital Markets Origination
On this page you can find out more about Capital Markets
Origination and how Citi plays a part in it all.
What Is Capital Markets
Origination?
The Capital Markets Origination team
(Fixed Income Capital Markets and Equity Capital Markets) is
focused on raising capital in financial markets for corporate and
public sector organisations. CMO originates, structures and
executes new issues of capital, provides clients with a range of
related services and manages their existing liabilities. These
services include secondary trading assistance, real-time market
insight, hedging strategies, investor relations advice, regulatory
assistance and equity-specific M&A guidance.
Capital Markets Origination and
Citi
Capital Markets Origination is the hub linking
Citi’s client coverage in our Banking organisation with Citi’s
relationships with investors in our Public Markets
organisation. CMO combines the client focus and long term
relationship building skills of Investment Banking coverage with
the fast moving and responsive nature of market facing roles.
Our clients range from corporations and financial institutions to
public sector entities, across Europe, the Middle East and
Africa.
How Are We
structured?
The Capital Markets Origination business
has a focus in both equities and fixed income markets. Below are
the main business groups in each:
Western European and Emerging Markets
Equity Capital Markets (ECM)
Our team advises clients on the full range of ECM products
including Initial Public Offerings (IPO’s), Rights Issues,
Follow-on Offerings, Equity-linked products (convertible and
exchangeable bonds) Block Trades and Accelerated Equity Offerings
(AEO’s). We work closely with Investment Banking on M&A
financing, as well as more general corporate financing
requirements.
UK ECM and Corporate
Broking
The UK team within ECM is known as Corporate Broking and provides a
retained equity advisor service that is unique to the UK stock
market. A corporate broker offers advice on possible M&A
projects or equity raising issues, and assists in the company’s
relationships with investors and regulatory authorities.
ECM Structured
Solutions
Our Equity Linked Capital Markets/Corporate Equity Derivatives
(CED) team proposes structured solutions that are specific to each
client. This team works closely with ECM on equity-linked
issues and the CED team also advises corporate clients for
hedging/monetizing current stakes, accelerated stake acquisition,
tax efficient structures, equity based loans, hedging dilution of
Employee Stock Option Programs and structured share buy back
programs.
Syndicate
Citi has both an Equity Syndicate and a Debt Syndicate desk
reflecting the different investor bases for each product. The
Syndicate desks are primarily responsible for the overall marketing
process of capital raising, acting as the market facing operation
of the ECM/ DCM business. The Syndicate desk leads the
bookbuilding process translating orders from investors into a book
of demand that allows us to advise the client on final pricing to
ensure a successful issue and after-market trading.
Debt Capital Markets
(DCM)
DCM advises all classes of issuers, including Sovereigns,
Corporates, Financial Institutions and Emerging Markets borrowers,
on how to approach the capital markets most effectively to raise
funds. They advise clients on their overall capital structure, the
mix of long term, medium term and short term financing to provide
capital efficiency and flexibility, and the structure of the
individual bonds before bringing them to the market. DCM
Coverage is organised along a mixture of geographic lines and
sector/client lines. Bond investors have traditionally been
organised along the lines of investment-grade/non investment
grade. By and large, the organisation of Citi’s DCM business
reflects that distinction – with non investment-grade or unrated
issuance handled by the High Yield team mentioned below. The
exception to that is our Emerging Markets business which advises
clients on both investment-grade and non investment-grade
issuance.
New Products
New Product specialists generate and develope new product ideas and
present these ideas to clients, taking the deal through to a
successful execution. This team works closely with our ECM
Structured Solutions team to provide innovative solutions to client
financing needs.
Loans & Leveraged Finance &
High Yield
The Loans team originates, structures and syndicates financing for
large, investment-grade, corporate companies. Leveraged
Finance and High Yield focuses on clients that do not have
investment grade ratings from bond agencies and advises those
clients on accessing either loan finance or public bond
issuance. Citi’s private equity clients will also typically
work closely with this team to finance both the acquisition and
ongoing financing needs of their portfolio
companies.
Securitization
The Securitization team advises clients on how to structure their
business to identify and separate stable/predictable cash flows
that can be packaged into rated marketable risk and sold to
investors. It is a form of debt financing technology actively used
in a variety of forms off-balance sheet, and alternative financing
for companies and banks.
Fixed Income
Derivatives
The Fixed Income Derivatives team advises clients on how to
mitigate interest rate and other risks in their capital
structure.