Citi to boost Japan investment banking headcount up to 15%, executive says
Plans 10%-15% boost in Japan headcount, new hires in Australia
Greater uncertainty drives up cross-border, supply chain deals
HONG KONG, - Citigroup plans to raise its investment banking headcount in Japan by 10% to 15% over the next year and make new hires in Australia, as part of its strategy to bolster growth in the Asia Pacific, its top regional banker said.
Rising interest in cross-border mergers and acquisitions in Japan has resulted in Citi seeing a 140% rise in its investment banking fees in the country to $92 million as of July 10 compared to the same period last year, Dealogic data shows.
"We are hiring and strengthening our regional investment banking team in a very meaningful way," Jan Metzger, Citi's Asia Pacific head of investment banking, told Reuters.
"We're going to be in the market that's growing phenomenally and we're going to be growing faster than the market," Metzger said. The U.S.-headquartered bank did not disclose specific staff numbers for each market.
Japan's investment banking business, in particular, will "meaningfully grow" due to a shift in corporate governance, a regulatory nudge to corporates to improve market value, and strong supply of advanced hardware technologies, Metzger said.
In Japan, Citi exclusively advised Nippon Steel on its $14.9 billion acquisition of U.S. Steel last month.
"I think off the back of the Nippon Steel deal, our phones are really ringing off the hook with clients that have complicated geopolitical deals to do, both from Japan and elsewhere," Metzger said.
Citi has beefed up its investment banking team in Asia this year by recruiting senior bankers from rivals, including senior managing director Akira Kiyota from Nomura in Japan and former Goldman Sachs veteran Philippe Perzi in Australia.
On Tuesday, Citi reported a 13% rise in global investment banking fees in the second quarter.
Dealmaking in the U.S. and some markets stalled shortly after Trump unleashed hefty tariff hikes earlier this year, which weighed on economic growth. However, Metzger said he is seeing greater uncertainty driving up supply chain deals.
Japan is leading Asia's M&A rebound in 2025 with a record $232 billion worth of deals in the first half, and bankers expect the trend to sustain fuelled by take-private arrangements, outbound investments and private equity activity.
Meanwhile, as volume and number of international deals climb in Australia, global banks now have an edge over local boutiques in a highly competitive market, according to Metzger.
Having a "full banking offering" in the market helps Citi better compete with its advisory-focused competitors in Australia, he said.
Besides deals advisory, another regional focus for the bank is convertible bond issuances, which have leapt over the past year. The bank helped Alibaba raise HK$12 billion via an exchangeable bond offering earlier this month.
Investors have flocked to convertible bonds from Chinese tech companies, viewing them as undervalued assets offering downside protection through the bond component to hedge geopolitical risks, Metzger said.
This article was generated from an automated news agency feed without modifications to text.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fibre2Fashion
30 minutes ago
- Fibre2Fashion
25% US tariff to hit India's GDP growth by 25-30 bps: SBI Research
Terming the imposition of 25-per cent tariff on India by the United States with penalty 'a bad business decision', the State Bank of India's (SBI) research division recently said the mysterious forces of global supply chain should auto adjust and cushion the impact. The tariff is expected to affect India's gross domestic product (GDP) growth by 25 to 30 basis points (bps) for fiscal 2025-26 (FY26), it said. Terming the imposition of 25-per cent tariff on India by the US with penalty 'a bad business decision', SBI Research recently said the mysterious forces of global supply chain should auto adjust and cushion the impact. The tariff is expected to affect India's GDP growth by 25 to 30 bps for FY26, it said. US GDP, inflation and currency face greater risk of downgrades compared to India, it noted. US GDP, inflation and currency face greater risk of downgrades compared to India, it noted. US tariffs are projected to cost the average US household about $2,400 in the short term, mainly due to higher prices from tariff-driven inflation. Low-income US families may lose around $1,300, nearly triple the relative burden compared to high earners, while high-income households could face losses of up to $5,000, though with less impact on their overall financial stability, it observed. India's primary exports will be affected by the 25-per cent US tariff. Among the sectors to be affected the most is textile products, including toilet and kitchen linen; bedspreads; furnishing articles of cotton, not knitted or crochted; and cotton bed linen. India has been an emerging supplier to US solar Industry, as US is restricting import of Chinese products. Therefore, imports from India to the United States has increased massively in 2023 and reached over 8 GW in 2024. The new tariff could make solar industry products from India more expensive for US buyers. So Indian supply will become less attractive to US companies, and they may replace solar modules from with tariff-free nations, SBI Research added. Fibre2Fashion News Desk (DS)
Economic Times
43 minutes ago
- Economic Times
Antfin to likely sell entire 5.84% stake in Paytm at Rs 3,800 crore via block deal: Report
Antfin plans to exit Paytm with a Rs 3,800 crore block deal at Rs 1,020 per share, marking a full divestment of its 5.84% stake. Antfin (Netherlands) Holding B.V., an Ant Group affiliate, is likely to sell its entire 5.84% stake in One 97 Communications through a Rs 3,800 crore block deal on Tuesday, with Citigroup and Goldman Sachs as placement agents. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Ant Group affiliate Antfin (Netherlands) Holding B.V. is likely to sell its entire 5.84% stake in One 97 Communications via block deal on Tuesday, according to a report. The floor price has likely been set at Rs 1,020 per Amsterdam-based company will offer over 3.72 crore shares and the block deal size is estimated at Rs 3,800 crore, according to ET Now report. Citing sources, the report said that Citigroup and Goldman Sachs are placement agents for the Group is behind the Chinese fintech giant of Paytm today ended at Rs 1,079.90 on the NSE, gaining by Rs 3.50 or 0.33% over the Friday closing price. The sale comes on the back of a strong 116% in the stock over a 1-year period. In 2025 so far, Paytm's gains are to the tune of 9%.One 97 Communications swung to profit in Q1FY26, with consolidated net gain of Rs 122.5 crore against a loss of Rs 839 crore in the year ago period. The company's revenue from operations stood at Rs 1,917 crore, which was up 28% from Rs 1,502 crore reported in the corresponding quarter of the last financial 97 Communication had reported a net loss of Rs 540 crore in Q4FY25 and it was attributable to the owners of the the topline was marginally higher on a sequential basis at 0.3% over Rs 1,911 crore reported in the January-March quarter of operating revenue grew by 28% YoY to Rs 1,918 crore, due to increase in number of subscription merchants, higher GMV and growth in revenues from distribution of financial Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) and PAT turned profitable at Rs 72 crore (margin of 4%) and Rs 123 crore respectively, demonstrating AI-led operating leverage, disciplined cost structure and higher other has upgraded Paytm to 'Buy' from 'Hold' following its Q1 earnings.
&w=3840&q=100)
First Post
43 minutes ago
- First Post
India, Philippine navies conduct first joint patrol in South China Sea amid rising tensions with China
Indian Navy warships have begun patrolling areas of the disputed South China Sea with their Philippine counterparts for the first time, Manila's military said Monday read more Indian Navy warships have begun patrolling areas of the disputed South China Sea with their Philippine counterparts for the first time, Manila's military said Monday, as President Ferdinand Marcos departed for a state visit to New Delhi. The two-day sail includes three Indian vessels and started Sunday, a day before Marcos left on a trip that will include talks with Indian Prime Minister Narendra Modi. The Philippines has heightened defence cooperation with a range of allies over the past year after a series of clashes in the South China Sea. STORY CONTINUES BELOW THIS AD Beijing claims nearly the entirety of the waterway despite an international ruling that its assertion has no legal basis. India's naval vessels, including the guided missile destroyer INS Delhi, arrived in Manila for a port visit late last week. The patrol 'started yesterday afternoon, then it's ongoing up to this moment… the activity at the moment is replenishment at sea,' Lieutenant Colonel John Paul Salgado told AFP. China in response accused Manila of 'drawing in external countries to stir up trouble' in the South China Sea. The joint patrol 'undermines regional peace and stability', said Senior Colonel Tian Junli, spokesperson of the Chinese military's Southern Theater Command. He said Beijing had conducted 'routine patrols' in the South China Sea on Sunday and Monday, and remained on 'high alert'. While in India, Marcos is expected to sign pacts in such fields as law, culture and technology, according to foreign affairs assistant secretary Evangeline Ong Jimenez-Ducrocq, but all eyes will be on any potential defence agreements. Before departing Monday, Marcos praised the two countries' 'steadfastness in upholding international maritime law, including the UNCLOS', the UN treaty granting an exclusive economic zone within 200 nautical miles (370 kilometres) of a country's shores. The Philippines has previously purchased BrahMos supersonic cruise missiles from India, a weapon which has a top speed of 3,450 kilometres (2,140 miles) per hour. STORY CONTINUES BELOW THIS AD India, which has engaged in border clashes with China in the Himalayas, is a member of the so-called Quad, a group that includes fellow democracies the United States, Japan and Australia. Beijing has repeatedly alleged that the four-way partnership, first conceived by late Japanese prime minister Shinzo Abe, was created as a way of containing China.
