Citibank Announces $1.3 Billion Redemption of 2.850% Notes due February 2021 and $1.25 Billion Redemption of Floating Rate Notes due February 2021

Rhea-AI Summary

Citibank, N.A. has announced the complete redemption of its $1.3 billion 2.850% Notes and $1.25 billion Floating Rate Notes, both maturing in February 2021. The redemption will take place on January 12, 2021, at par plus accrued interest. This move aligns with Citibank's liability management strategy, aimed at enhancing funding efficiency and capital structure. The bank will continue evaluating opportunities for security redemptions or repurchases based on economic value, regulatory factors, and market conditions, effective immediately after the redemption date.

Positive

• Redemption of $1.3 billion and $1.25 billion notes aligns with effective liability management strategy.
• Efforts to enhance funding efficiency and capital structure may positively impact net interest margin.

Negative

• None.

Citibank, N.A. is announcing the redemption, in whole, constituting $1,300,000,000 in aggregate principal amount, of its 2.850% Notes due February 2021 (the “FXD notes”) (ISIN: US17325FAL22), and the redemption, in whole, constituting $1,250,000,000 in aggregate principal amount, of its Floating Rate Notes due February 2021 (the “FRN notes”, and together with the FXD notes, the “notes”) (ISIN: US17325FAM05).

The redemption date for the notes is January 12, 2021. The cash redemption price payable for the notes on January 12, 2021 will equal par plus accrued and unpaid interest. The redemption announced today is consistent with Citibank's liability management strategy, and reflects its ongoing efforts to enhance the efficiency of its funding and capital structure. Citibank will continue to consider opportunities to redeem or repurchase securities, based on several factors, including without limitation, the economic value, regulatory changes, potential impact on Citibank's net interest margin and borrowing costs, the overall remaining tenor of Citibank's debt portfolio, capital impact, as well as overall market conditions.

Beginning on the redemption date, the notes will no longer be outstanding and interest will no longer accrue on such securities.

Citibank, N.A. is the paying agent for the notes.

Citigroup, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citigroup 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20201228005261/en/

FAQ

What is the redemption amount of Citibank's notes?

Citibank is redeeming $1.3 billion in FXD notes and $1.25 billion in FRN notes.

When is the redemption date for the notes?

The redemption date for the notes is January 12, 2021.

What will be the cash redemption price for the notes?

The cash redemption price will equal par plus accrued and unpaid interest.

Why is Citibank redeeming its notes?

The redemption is part of Citibank's strategy to enhance the efficiency of its funding and capital structure.

What will happen to the notes after the redemption date?

After the redemption date, the notes will no longer be outstanding, and interest will cease to accrue.