Citibank Announces $200-Million Loan Facility with OPIC For Caribbean & Central America.

NEW YORK--(BUSINESS WIRE)--Feb. 10, 1999--Citibank today announced a $200-million facility to bring investments and jobs to 22 countries in the Caribbean and Central America.

The agreement for the facility was signed today at the U.S. Capitol building by Citibank and its partner for the facility, the U.S. Overseas Private Investment Corporation (OPIC). Signers were George Munoz, President of OPIC, and Victor J. Menezes, President of Citibank, who described the facility as a "major business commitment" for Citibank.

Funding for the loans under the $200-million facility will come from Citibank, with half the amount carrying an OPIC credit guaranty and the remaining 50% eligible for OIC political-risk insurance.

With the facility, Citibank will have incremental capacity to extend medium- and long-term loans to its private-sector clients for new projects that should create jobs, provide tax revenues and generate foreign exchange for the host countries. In addition, OPIC estimates that the facility will increase exports to the region and create jobs in the United States.

Noting that long-term credit to the region from private sources historically has been scarce, Naveed Riaz, Citibank's Division Executive for the region, said: "The credit and insurance support provided by OPIC will allow Citibank to better serve its customers by noticeably increasing our already extensive lending activities in the targeted countries at a time when many other private sources of financing to Latin America and the Caribbean are increasingly cautious."

Loans under the facility, which takes effect immediately, will range from $500,000 to $40 million, with maturities from one year to ten years.

The OPIC support will be available for projects in the following countries: Anguilla, Antigua & Barbuda, Aruba, Bahamas, Barbados, Belize, Costa Rica, Dominica, Dominican Republic, El Salvador, Grenada, Guatemala, Honduras, Jamaica, Netherlands Antilles, Nicaragua, Panama, St. Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Surinam and Trinidad & Tobago. Citibank and OPIC already have a similar facility for Haiti.

Companies interested in accessing the facility should contact their Citibank relationship manager.

Citibank, which began opening offices in the region in 1904, has the largest presence there of any U.S.-based bank. It offers a wide range of corporate and consumer banking services in the region, with branches in 11 countries and over 1,000 employees.

Citibank is part of Citigroup, Inc., which was formed October 8, 1998 by the merger of Citicorp and Travelers Group Inc. Citigroup provides a broad array of financial products and services to 100 million consumer and corporate customers through operations in 100 countries. In addition to Citibank, its businesses include Commercial Credit, Primerica, Salomon Smith Barney, SSB Citi Asset Management, Travelers Life & Annuity and Travelers Property Casualty.