Citigroup establishes an energy transition unit within investment banking
Citigroup Inc (C.N) has announced that it has formed a unit within its energy investment bank devoted to the clean energy transition, targeting to capture more business from the shift towards a lower-carbon economy, according to an internal memo.
The entity will be directed by Serge Tismen and Shail Mehta and will emphasize on companies comprising those involved in hydrogen, charging infrastructure, carbon capture and sequestration, and biofuels said the memo.
The move comes after Citigroup said in March it would combine three of its investment banking units - energy, power, and chemicals - into a single entity that would be more receptive to clients' focus on sustainability.
The Clean Energy Transition sector will sit within that group and cover both public and private entities, as well as private equity and venture capital firms and their respective portfolio companies focused on green energy. Firms involved in renewable power generation will remain with bankers in the broader group.
"Clean energy transition is a global super trend that is accelerating rapidly and will last decades," said the memo, adding that to appropriately meet the challenges of the shift, the bank needed "a clearly defined identity, dedicated resources, intense focus, and direct accountability".