THE Manila unit of the global financial services giant CitiGroup anticipates greater involvement in the fund-raising activities of both the government and the corporate sector during the year.

Sanjiv Vohra, Citi country manager, said on Tuesday growth prospects abound in the Philippines this year, particularly in the areas of real estate, infrastructure, banking and public sector finance that will help drive investment activities over the near horizon.

“It’s likely better than 2010” when Citibank Manila helped sell $3 billion worth of IOUs issued by the national government, Vohra said.

This pertained to peso-denominated bonds worth $1 billion issued in September last year and another $1.25 billion the government issued in January to help bridge the budget shortfall of some P300 billion this year.

Citi also helped arrange the $200-million subordinated perpetual capital issuance of Royal Capital BV, the special purpose vehicle of port operator International Container Terminal Services inc. and the $300 million senior notes sold by Banco de Oro Universal Bank.

These underwriting activities were on top of the P1.7-billion upper tier-two sale by Planters Bank that Citi helped arrange and the equity purchase worth P4.9 billion by the UK-based CVC Capital Partners in the local lender Rizal Commercial Banking Corp. (RCBC).

Prior to this, Citi also helped arrange the entry of the International Finance Corp, the private investment arm of the World Bank, in RCBC where the multinational has a P2.12-billion equity participation.

“We provide the best solutions as opposed to a product push,” Kristine Braden, head of global banking at Citi, said.

Vohra also said more banks and private corporations were seen to acquire or merge with one another in the months ahead as the relevant entities expand operational spheres of influence.

“Many Philippine banks are incredibly niche-focused,” Braden noted.

Citi helped make arrangements when homegrown fast-food chain operator Jollibee Foods went overseas.

On the likelihood of higher domestic interest rates going forward, Vohra said Philippine assets should still attract foreign interest no matter rising evidence of risk aversion on the part of foreign-fund managers.

He sees the competition heating up and affecting base rates rather than on interest spreads.