Citibank Announces $1.5 Billion Redemption of 2.844% Fixed Rate / Floating Rate Notes due May 2022 and $1.5 Billion Redemption of Floating Rate Notes due May 2022

Rhea-AI Summary

Citibank, N.A. has announced the complete redemption of $1,500,000,000 of its 2.844% Fixed Rate/Floating Rate Notes and $1,500,000,000 of its Floating Rate Notes, both due May 2022. The redemption will take place on May 20, 2021, with a cash price equal to par plus accrued interest. This move aligns with Citibank's liability management strategy aimed at improving its funding efficiency and capital structure. Post-redemption, the notes will cease to accrue interest, as confirmed by Citibank, which serves as the paying agent for these securities.

Positive

• Redemption of $3 billion in total, indicating strong cash management.
• Aligns with Citibank's strategy to enhance funding efficiency and capital structure.

Negative

• None.

Citibank, N.A. is announcing the redemption, in whole, constituting $1,500,000,000 in aggregate principal amount, of its 2.844% Fixed Rate / Floating Rate Notes due May 2022 (the “FXD / FRN notes”) (ISIN: US17325FAY43), and the redemption, in whole, constituting $1,500,000,000 in aggregate principal amount, of its Floating Rate Notes due May 2022 (the “FRN notes”, and together with the FXD / FRN notes, the “notes”) (ISIN: US17325FAX69).

The redemption date for the notes is May 20, 2021. The cash redemption price payable for the notes on May 20, 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/20210505005902/en/

FAQ

What is the total amount of Citibank's notes being redeemed?

Citibank is redeeming a total of $3 billion in notes, consisting of $1.5 billion of Fixed Rate/Floating Rate Notes and $1.5 billion of Floating Rate Notes.

When is the redemption date for Citibank's notes?

The redemption date for the notes is May 20, 2021.

What will happen to the interest on the notes after redemption?

Interest will no longer accrue on the notes beginning on the redemption date.

How does this redemption fit into Citibank's financial strategy?

The redemption reflects Citibank's liability management strategy to enhance the efficiency of its funding and capital structure.