The European CDO market has been historically dominated by corporate-loan securitizations but the mounting pressures to improve shareholder returns is motivating banks to queue balance-sheet dilemmas in alternative directions, which may result in more project-loan securitizations coming to fruition by year's end, said market analysts.

Last week's pricing of Citibank's $350 million Project Securitization Co.1 is expected to be a first in a series of project finance-loan securitizations for the bank, which intends to free up regulatory capitol in its sizeable portfolio in order to originate additional loans.

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