As Citi marks 50 years of operations in Egypt, the global banking group is reaffirming its long-term commitment to the country’s economic transformation and integration into global markets.
In an exclusive interview, Ernesto Torres Cantú, Citi’s Head of International, discusses the bank’s long-standing role in Egypt—from sovereign financing and capital markets development to green finance. Cantú shares Citi’s perspective on the evolving global investment landscape, the promise of Egypt’s economic reforms, and how Citi is positioning itself in a more digital, fragmented, and sustainability-driven world.
How much financing has Citi provided to Egypt since it began operations here, and in which sectors have you focused the most?
Citi’s vision is to be the preeminent banking partner for clients with cross-border needs. Global corporations truly value our physical presence in over 90 markets around the world, including in Egypt where we have served clients for the past 50 years.
We have the best local talent in Egypt, led by Mohamed Abdel Kader who celebrates his 30th anniversary with the firm this year. We have built longstanding relationships with clients, regulators, and the community. We know the regulations, we know the land, we know how to help you navigate the environment.
Citi is honored to have been a key player in developing Egypt’s capital markets, serving multinational companies, local corporates, financial institutions, and global custodians. We have been an active partner in sovereign financing, helping Egypt tap international capital markets as the joint lead and joint bookrunner for most of the Egyptian Eurobonds for the past ten years. We are also among the top hedging banks for the Egyptian Government.
Citi has played an important role in market infrastructure, from custody services that support foreign investor participation in local debt markets, to innovations in payments and transaction services that facilitate financial flows. These contributions have helped to increase market depth and liquidity, which ultimately benefit both the economy and the private sector.
We appreciate the support from the government, and our clients for giving us their preference – it is a privilege that we need to keep earning every day.
What are Citi’s expectations for future investments and capital inflows into Egypt?
Egypt’s economy has done well over the last year, bringing in investment, particularly into important areas like building, tourism, and industry. This increase in investment was helped by a more flexible currency exchange rate and higher interest rates.
We believe that ongoing spending on infrastructure, energy, and technology, and a focus on keeping inflation in check, will promote a stronger and more diversified economy.
What is the strategic significance of your visit to Egypt at this specific timing?
I am visiting as we celebrate Citi Egypt’s 50th anniversary, underscoring our deep and enduring commitment to the country. Citi has played an important role in Egypt’s economic journey – from facilitating landmark transactions to supporting the evolution of its financial markets – and we look forward to serving our clients here for many years to come.
Many emerging markets face a “green premium” when issuing sustainable bonds. What is Citi’s view on reducing this cost for countries like Egypt to access ESG financing more competitively?
Green bonds price at a yield premium in emerging markets when compared to those in Western Europe, but this is a function of the underlying credit quality and ratings of the borrowers. We would expect two identical bonds from an EM issuer – one conventional and one green – to trade at roughly the same yield, perhaps with the green bond trading a little bit lower than the conventional.
In MEA, where infrastructure and digital finance are rapidly growing, how is Citi positioning itself?
In infrastructure, Citi is providing financing and project support to governments for essential public works. For example, Citi provided financing for renewable energy projects in South Africa, contributing to essential public works and infrastructure development.
In digital finance, we are actively adopting instant payment systems and are recognized as a leader in digital banking. Our aim is to make money movement instant and programmable, and we are exploring solutions like tokenization. Citi is also improving digital collections through integration with local electronic payment platforms and automated trade products.
Citi has committed to financing $1 trillion in sustainable finance by 2030. How do you see Egypt and the wider MENA region fitting into this ambition? Do you see appetite among international investors for green instruments from Egypt?
The Egypt government’s support of renewable energy projects and launch of sovereign green bonds, shows a clear commitment to sustainable development. This aligns with the interest we have seen from clients to diversify energy resources and the transition to low-carbon growth.
Citi is actively supporting Egypt’s green ambitions, by offering advisory services, capital raising, and connecting investors with opportunities in renewable energy and sustainable infrastructure.
Citi led the first Egyptian Government green bond issuance for $750 million in 2020. This was five times oversubscribed, demonstrating strong investor interest in such green instruments.
Global
In your view, are we witnessing the final chapter of globalization, or simply the start of a new, more fragmented global economy?
We see a fundamental shift in global trade and capital flows, and our global network was built to support our clients precisely in such moments of uncertainty and volatility.
We believe that Egypt’s infrastructure development, especially the Suez Canal economic zone and connectivity initiatives, will continue to play a critical role in global supply chains. This, combined with ongoing digital transformation and a young population, provide a strong foundation for long-term competitiveness.
With geopolitical and economic uncertainties rising, how do you see the role of global banks like Citi evolving?
For our clients, these changes are creating pathways for growth, especially for businesses that can adapt quickly and build more resilient value chains. In many countries, we are the only bank that has had a consistent physical presence, connected to the most global network. This allows us to bring not only global insights but also unique solutions for clients who want to expand abroad.
If you are a CEO or a chief financial officer of a business that wants to start operations in a new market, you would want a bank who can meet you this afternoon – and we can do that. We can also help you in the process of starting up your business because we have the on the ground expertise.
Risk management of course remains a priority, taking into account geopolitical considerations and the impact of new technologies such as AI.
How are global liquidity and capital inflows shifting, and what role is Citi playing in facilitating them?
The US continues to be the largest recipient of capital flows globally and we are actively supporting foreign direct investment and outbound trade. Our digital platforms are further enabling more seamless cross-border transactions.
We also see a shift in emerging markets from traditional foreign currency bank lending towards local currency bonds and equities. We continue to help emerging markets to access international capital markets, particularly for local currency instruments, and helping clients understand the impact of major central bank policies on capital flows.
How is Citi preparing its international operations for the shift toward digital-first and AI-driven banking?
Today, approximately 175,000 colleagues across 80 jurisdictions are using Citi GenAI, with plans to expand throughout the year .
This is transforming how we operate, improving client experiences, accelerating work and enabling faster decision making. For example, we are using GenAI to improve call routing for clients and streamline the creation of complex credit reports.
