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Vetra Finance Corp (50FI)


Friday 14 December, 2007

Vetra Finance Corp

Press Release

Vetra Finance Corporation
14 December 2007

For Immediate Release Citigroup Inc. (NYSE: C) December 13, 2007

              Citi Commits Support Facility for Citi-Advised SIVs

NEW YORK - Citi announced today that it has committed to provide a support
facility that will resolve uncertainties regarding senior debt repayment
currently facing the Citi-advised Structured Investment Vehicles ('SIVs').

This action is a response to the recently announced ratings review for possible
downgrade by Moody's and S&P of the outstanding senior debt of the SIVs, and the
continued reduction of liquidity in the SIV related asset-backed commercial
paper and medium-term note markets. These markets are the traditional funding
sources for the SIVs. Citi's actions today are designed to support the current
ratings of the SIVs' senior debt and to allow the SIVs to continue to pursue
their current orderly asset reduction plan. As a result of this commitment, Citi
will consolidate the SIVs' assets and liabilities onto its balance sheet under
applicable accounting rules.

Several key factors further contributed to Citi's decision to make this

                        The SIVs continue to successfully pursue alternative
funding strategies, primarily asset reductions, to meet maturing debt
obligations. The SIV assets (net of cash and cash equivalents) have been reduced
from $87 billion in August 2007 to $49 billion currently, while maintaining the
overall high credit quality of the portfolio.  Citi expects orderly asset
reductions will be sufficient to meet liquidity requirements through the end of
2008, which currently total $35 billion.  Consequently, Citi expects little or
no funding requirement from the facility.

                        As assets continue to be sold, Citi's risk exposure, and
the capital ratio impact from consolidation, will be reduced accordingly.

                        Given the high credit quality of the SIV assets, Citi's
credit exposure under its commitment is substantially limited. Approximately 54%
of the SIV assets are rated triple-A and 43% double-A by Moody's, with no direct
exposure to sub-prime assets and immaterial indirect sub-prime exposure of $51
million.  In addition, the junior notes, which have a current market value of
$2.5 billion, are in the first loss position.

                        Taking into account this commitment, Citi still expects
to return to its targeted capital ratios by the end of the second quarter of
2008.  Based on September 30, 2007 capital ratio disclosures and applying the
current asset levels in the SIVs, the estimated impact of this action would have
been approximately 16 basis point decline in the Tier 1 capital ratio and
approximately 12 basis point decline in the TCE/RWMA ratio.

'Our team has made great progress managing the SIVs in a very difficult
environment. After considering a full range of funding options, this commitment
is the best outcome for Citi and the SIVs,' said Vikram Pandit, Citi's Chief
Executive Officer.

The terms of this committed facility will be finalized in early 2008 and will
reflect market terms.

The commitment is independent of the 'Master Liquidity Enhancement Conduit' ('
M-LEC'). Citi continues to support the formation of the M-LEC, which is an
initiative that involves Citi and other financial institutions.

Attached are additional fact sheets regarding the SIVs and the committed support


Citi, the leading global financial services company, has some 200 million
customer accounts and does business in more than 100 countries, providing
consumers, corporations, governments and institutions with a broad range of
financial products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, and wealth management.
Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith
Barney and Banamex. Additional information may be found at or

Certain statements in this document are 'forward-looking statements' within the
meaning of the Private Securities Litigation Reform Act. These statements are
based on management's current expectations and are subject to uncertainty and
changes in circumstances. Actual results may differ materially from those
included in these statements due to a variety of factors. More information about
these factors is contained in Citigroup's filings with the Securities and
Exchange Commission.

Media Contacts: Christina Pretto (212) 559-9560

                          Michael Hanretta (212) 559-9466

                            Shannon Bell (212) 793-6206

Investors:   Arthur Tildesley (212) 559-2718

Fixed Income Investors: Maurice Raichelson (212) 559-5091


       Profile of the SIV assets and liabilities as of December 12, 2007:
Average Credit Quality (1,2)
                                          Average Asset Mix           Aaa           Aa              A
Financial Institutions Debt                      60%                  14%           43%            3%
Sovereign Debt                                   1%                    1%
Structured Finance:
   MBS - Non-U.S. residential                     12%                 12%
   CBOs, CLOs, CDOs                                6                   6
   MBS - U.S. residential                          7                   7
CMBS                                               3                   3
   Student loans                                   5                   5
   Credit cards                                    5                   5
Other                                              1                   1
Total Structured Finance                          39%                 39%
Total Assets                                      100%                54%           43%            3%
•     The weighted average maturity of the assets is 3.7 years

                        (1) Based on Moody's ratings.

                        (2)           The SIVs have no direct exposure to U.S.
sub-prime assets and have approximately $51 million of indirect exposure to
sub-prime assets through CDOs which are AAA rated and carry credit enhancements.

Amount                                                     Average Rating          Average Maturity
Commercial Paper                       $10B                   A-1+/P-1                2.4 months
Medium Term Notes                       48B                    AAA/Aaa               10.1 months


                        Through asset reductions, the SIVs have partially repaid
the previously disclosed $10 billion commitment to purchase commercial paper.
As a result, Citi now holds $7.2 billion of commercial paper issued by the SIVs
as of December 12, 2007. Citi expects the SIVs to fully repay the commercial
paper at or before the last maturity date in mid-March 2008.  Following the
final maturity date, the new facility is expected to be the sole commitment by
Citi to the SIVs.

                        The Citi-advised SIVs are: Beta, Centauri, Dorada, Five,
Sedna, Vetra and Zela.



•     From an accounting perspective:

-Upon consolidation and on an ongoing basis, the SIV assets and liabilities will
be accounted for at fair value.

-Any losses resulting from changes in the market values of the assets and
liabilities are first borne by the junior note holders up to the value of their
investments, which had a market value of $2.5 billion on December 12, 2007.

-     The total value of the assets and liabilities on December 12, 2007, were
each $62 billion, which includes cash and cash equivalents of $13 billion in the
assets and the $2.5 billion of junior notes in the liabilities.

•     From an economic perspective:

-The size and terms of the facility will be determined in early 2008 and will
reflect market terms.

-     The size of the facility will vary through the life of the facility and
will depend on a number of factors, including the SIVs' repayment of maturing
debt obligations.

                      This information is provided by RNS
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