Citi Hires Black-Owned Firms to Distribute $2.5 Billion Bond Issuance in Support of Affordable Housing

Rhea-AI Summary

Citi successfully partnered with five Black-owned firms to syndicate a $2.5 billion bond issuance, underscoring its commitment to racial equity. The funds will support the construction and preservation of affordable housing for low- and moderate-income Americans. As part of the Action for Racial Equity initiative, Citi has already invested $1 billion towards closing the racial wealth gap. This bond issuance, priced on January 18 and settled on January 25, signifies Citi's leadership in affordable housing lending, having been the top lender in the U.S. for the past 11 years.

Positive

• Citi's bond issuance supports affordable housing, addressing critical scarcity and expense in urban areas.
• Collaboration with five Black-owned firms enhances capital market distribution and promotes diversity.
• Citi is on track to exceed its initial $1.1 billion commitment to the Action for Racial Equity initiative.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- Citi announced that it worked exclusively with five Black-owned firms to syndicate a $2.5 billion bond issuance, reinforcing the firm’s commitment to increasing racial equity in the capital markets and broader financial services industry.

Building on Citi’s long-standing commitment to increasing affordable housing, the proceeds from the bond will finance the construction, rehabilitation and preservation of quality affordable housing for low-and moderate-income populations in the United States.

In November, Citi and the Citi Foundation announced that one year into a three-year commitment, the Action for Racial Equity initiative had already invested $1 billion in strategic initiatives to help close the racial wealth gap and increase economic mobility in the United States. Citi is on track to far exceed its original $1.1 billion commitment which includes a goal to strengthen Citi’s own policies and practices, including the expansion of the firm’s own core business activities with minority-owned broker dealers and depository institutions.

“Safe and affordable housing is an important platform for financial stability and economic mobility, yet it is scarce and too expensive in many urban areas across the country,” said Mark Mason, Chief Financial Officer of Citi. “Citi has been the #1 affordable housing development lender in the U.S. for the past 11 years and this bond issuance is reflective of our commitment to increase the availability of affordable housing units within the communities we live and work. Dr. King had a tremendous influence on the passage of the Fair Housing Act and I’m proud that Citi continues to leverage our business capabilities to help achieve equity in the housing market.”

The $2.5 billion dual tranche transaction priced on January 18 and settled on January 25. For this transaction, Citi hired five Black-owned financial firms to underwrite and distribute the bonds to investors, in addition to Citigroup Global Markets Inc. The firms included Blaylock Van, LLC; CastleOak Securities, L.P.; Global Oak Capital Markets, Loop Capital Markets LLC and Security Capital Brokerage, Inc.

“Security Capital is proud to have been part of this transaction,” said Nathan L. Lewis, President and CEO Security Capital Brokerage. “We truly appreciate the opportunity to partner with Citi in supporting affordable housing and look forward future opportunities to work together.”

“This bond issuance is a win-win for Citi. Through our partnership with these minority-owned firms, we further enhance our best-in-class capital market distribution capabilities, while also financing affordable housing projects,” said Michael Verdeschi, Treasurer of Citi.

Since 2015, Citi has worked with over 30 firms owned by underrepresented minorities, women and veterans totaling more than $150 billion in bond issuance.

Citi

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

View source version on businesswire.com: https://www.businesswire.com/news/home/20220128005289/en/

Media: Danielle Romero-Apsilos (212) 816-2264

Investors: Jennifer Landis (212) 559-2718

Fixed Income Investors: Thomas Rogers (212) 559-5091

Source: Citigroup Inc.

FAQ

What is the significance of Citi's $2.5 billion bond issuance on January 25, 2023?

Citi's $2.5 billion bond issuance supports affordable housing initiatives and exemplifies its commitment to racial equity.

How does Citi's partnership with Black-owned firms impact its business model?

Partnering with Black-owned firms enhances Citi's capital market distribution capabilities and promotes diversity.

What are the goals of Citi's Action for Racial Equity initiative?

The initiative aims to close the racial wealth gap and increase economic mobility, with over $1 billion already invested.

What has been Citi's position in the affordable housing lending sector?

Citi has been the leading affordable housing development lender in the U.S. for the past 11 years.

When did Citi price the dual tranche bond transaction?

The dual tranche bond transaction was priced on January 18, 2023.