GCS QA v2.pdf

Global Custodial Services Q&A – 77344426Q0057

1. SWIFT connectivity / instruction method: Do you have SWIFT capabilities? If not, how do you intend to submit instructions to the custodian?

o DFC has SWIFT capabilities to make and receive payments via the US Treasury and its vendors . However, neither DFC nor the US Treasury have the capability for SWIFT messaging.

2. Online access / platform requirements: Do you require a web-based platform to submit instructions and access online statements and reporting?

o Initially, DFC may use voice/email to submit instructions and would like access to online statements and reporting. If a web-based platform, Bloomberg, or secure API integrations are available as part of vendor’s services, please note and detail.

3. Tax services: Please outline your tax service requirements, including tax reporting needs and the proposed account structure and ownership model.

o Required services will mainly include assistance with regulatory and tax filings/reporting/withholding, proxy voting, repatriation of profits, liaising with DFC brokers and Tax Advisors to analyze; validate and settle transactions, and other requirements as specified by the laws of the jurisdiction for custodians where the investments are held.

o DFC owns securities directly. The vendor should propose custodial account structure for consideration by DFC after award/onboarding.

4. Transfers to the U.S. Treasury: Point 5 references “transfer funds to the U.S.

Treasury”. Would this require USD securities and cash accounts in the US market, or could you describe the intended end-to-end process (including settlement and funding flows)?

o No. This requirement is to send any funds received related to the securities held in custody to DFC’s account at the U.S. Treasury (New York Federal Reserve Bank). DFC will provide the necessary instructions to facilitate such transfers via SWIFT or FEDWIRE.

5. Contracting requirements: Are there any specific contracting requirements we should be aware of (e.g., legal, regulatory, service levels, or documentation preferences)?

o All contracting requirements on the Government’s end regarding applicable clauses will be issued at the time of award for your review, prior to any signatures or account opening (if not already included in the solicitation).

6. Account volumes: How many accounts do you expect to require in each market (including any segregation or sub-accounting needs)?

o Initially, DFC does not anticipate needing more than one account in each applicable market. DFC is seeking a global custodian that can provide a consolidated view across the markets in which DFC operates.

7. Is there a breakdown of the value of assets that are currently held in each market?

o Please see Q&A response #8

8. Please provide a list of assets, including market value and market of settlement/ safekeeping. For private/non-listed assets, please identify any custody services required (e.g. physical doc vault safekeeping, memo recordkeeping, etc.).

o As of December 31, 2025, DFC’s exposure across all products is about $42 billion.

o Assets requiring priority custody are primarily equity securities, certain fund investments, debt securities, or other instruments (e.g. warrants) and approximately total $650 million.

o Given DFC’s newly authorized $205 billion capital limit and expanded equity investment authorities, DFC anticipates significant growth in its portfolio in the coming years. Vendors should appropriately consider the current value of the portfolio when providing pricing, while recognizing the larger future need as DFC scales its investments.

o Please provide a pricing schedule, if pricing is dependent on asset value and/or transaction volume (including any minimum, asset based, transaction or other fees).

o DFC does not have a current need for custody services for private and non-listed assets, but the contractor should provide pricing for services in case of future needs. Should DFC require the services, the contractor should safeguard all documents and physical securities as necessary and the custodian shall keep records of all transactions involving any assets in its custody.

o DFC has published certain portfolio data publicly on its investments, subject to certain constraints. These data should be considered illustrative for purposes of the Statement of Work – DFC's future transaction scope should be expected to deviate from prior transactions and grow significantly.

9. Please provide an average cash balance held by currency o Generally, the custodian is not expected to hold cash balance; and, if held, it will be for a limited, short period.

10. Please provide transaction volumes by market of settlement to the extent available o Immediate custody needs are in India, Australia, and Brazil. Transaction volumes are to be determined.

o Under DFC’s reauthorization, countries eligible for DFC investment expanded significantly. A list of eligible countries where DFC may eventually need custody services can be found here. Please also note that public securities held by DFC may be publicly listed in countries not included above, such as the USA, Australia, Singapore, or other countries with major exchanges.

11. Do you require any form of accounting and/or audited valuation data from the custodian that conforms to a specific accounting standard? Please identify if daily, monthly, annually.

o Yes, DFC is looking for accounting of activity on the securities held on its behalf, initially on an annual basis.

o Audited valuation is not required and public market valuations (e.g. via Bloomberg, using ISIN or CUSIP.) are acceptable and do not require a specific accounting standard.

12. Do you require any bespoke reporting?

o None is anticipated at this time.

https://www.dfc.gov/our-impact/transaction-data https://www.dfc.gov/what-we-offer/work-with-us/where-we-work

13. Please provide detail regarding any Trustee/Trust Services that you require from your custodian.

o No trustee/trust services are required at this time.

o Required services will mainly include assistance with regulatory and tax filings/reporting/withholding, proxy voting, repatriation of profits, liaising with DFC brokers to validate and settle transactions, and other requirements as specified by the laws of the jurisdiction for custodians where the investments are held.

14. Is the Government strictly limiting this requirement to a firm fixed price pricing model, or does the Government anticipate allowing flexibility in how offerors structure firm fixed price assumptions, including approaches that account for potential efficiencies gained over time through process improvements or technology enablement?

o The Government anticipates a firm fixed price contract based off of unit pricing. Each applicable fee will be specified on a separate contract line-item number (CLIN) to allow for operational flexibility in situations where pricing may be based on account size or region.

15. Can the Government provide any historical, notional, or estimated information regarding:

• Expected transaction volumes o Immediate need will be for $650 million in priority assets for custody. Per the above answer, DFC anticipates significant growth due to $205 billion in newly authorized capital limit. Custody needs and transaction volumes will grow accordingly with the newly authorized capital.

• The approximate number of securities expected to be held?

o Immediate need will be for seven priority assets for custody. Per the above answer, DFC anticipates significant growth due to $205 billion in newly authorized capital limit. Custody needs and securities held will grow accordingly with the newly authorized capital.