Citigroup Announces $1.75 Billion Redemption of 3.290% Fixed Rate/Floating Rate Notes Due 2026 and $500 Million Redemption of Floating Rate Notes Due 2026
Citigroup has announced the redemption of two notes series totaling $2.25 billion, scheduled for March 17, 2025. The redemption includes $1.75 billion of 3.290% Fixed Rate/Floating Rate Notes and $500 million of Floating Rate Notes, both due 2026.
The redemption price will equal par value plus accrued and unpaid interest up to the redemption date. This strategic move aligns with Citigroup's liability management strategy and aims to enhance funding and capital structure efficiency.
The bank will continue evaluating opportunities for security redemptions or repurchases based on factors including economic value, regulatory changes, impact on net interest margin, borrowing costs, debt portfolio tenor, capital impact, and market conditions.
Citigroup ha annunciato il riscatto di due serie di note per un totale di 2,25 miliardi di dollari, programmato per il 17 marzo 2025. Il riscatto comprende 1,75 miliardi di dollari di note a tasso fisso/variabile al 3,290% e 500 milioni di dollari di note a tasso variabile, entrambe in scadenza nel 2026.
Il prezzo di riscatto sarà pari al valore nominale più gli interessi maturati e non pagati fino alla data di riscatto. Questa mossa strategica si allinea con la strategia di gestione delle passività di Citigroup e mira a migliorare l'efficienza della struttura di finanziamento e del capitale.
La banca continuerà a valutare opportunità di riscatto o riacquisto di titoli in base a fattori quali il valore economico, le modifiche normative, l'impatto sul margine di interesse netto, i costi di finanziamento, la scadenza del portafoglio debitorio, l'impatto sul capitale e le condizioni di mercato.
Citigroup ha anunciado el rescate de dos series de notas por un total de 2.25 mil millones de dólares, programado para el 17 de marzo de 2025. El rescate incluye 1.75 mil millones de dólares en Notas a Tasa Fija/Tasa Variable del 3.290% y 500 millones de dólares en Notas a Tasa Variable, ambas con vencimiento en 2026.
El precio de rescate será igual al valor nominal más los intereses acumulados y no pagados hasta la fecha de rescate. Este movimiento estratégico se alinea con la estrategia de gestión de pasivos de Citigroup y busca mejorar la eficiencia en la estructura de financiamiento y capital.
El banco continuará evaluando oportunidades para el rescate o recompra de valores basándose en factores como el valor económico, cambios regulatorios, impacto en el margen de interés neto, costos de endeudamiento, plazo de la cartera de deuda, impacto en el capital y condiciones del mercado.
시티그룹은 2025년 3월 17일로 예정된 총 22억 5천만 달러 규모의 두 가지 노트 시리즈의 상환을 발표했습니다. 상환에는 3.290% 고정금리/변동금리 노트 17억 5천만 달러와 2026년 만기인 변동금리 노트 5억 달러가 포함됩니다.
상환 가격은 상환 날짜까지의 발생한 미지급 이자를 포함한 액면가와 같습니다. 이 전략적 조치는 시티그룹의 부채 관리 전략과 일치하며 자금 조달 및 자본 구조의 효율성을 향상시키는 것을 목표로 합니다.
은행은 경제적 가치, 규제 변화, 순이자 마진에 대한 영향, 차입 비용, 부채 포트폴리오 만기, 자본 영향 및 시장 조건을 포함한 요인에 따라 증권 상환 또는 재매입 기회를 계속 평가할 것입니다.
Citigroup a annoncé le rachat de deux séries de titres pour un total de 2,25 milliards de dollars, prévu pour le 17 mars 2025. Le rachat comprend 1,75 milliard de dollars de titres à taux fixe/variable de 3,290 % et 500 millions de dollars de titres à taux variable, tous deux arrivant à échéance en 2026.
Le prix de rachat sera égal à la valeur nominale plus les intérêts courus et non payés jusqu'à la date de rachat. Ce mouvement stratégique s'inscrit dans la stratégie de gestion des passifs de Citigroup et vise à améliorer l'efficacité de la structure de financement et de capital.
La banque continuera d'évaluer les opportunités de rachat ou de rachat de titres en fonction de facteurs tels que la valeur économique, les changements réglementaires, l'impact sur la marge d'intérêt nette, les coûts d'emprunt, la durée du portefeuille de dettes, l'impact sur le capital et les conditions du marché.
Citigroup hat die Rückzahlung von zwei Anleiheserien im Gesamtwert von 2,25 Milliarden Dollar angekündigt, die für den 17. März 2025 geplant ist. Die Rückzahlung umfasst 1,75 Milliarden Dollar an 3,290% festverzinslichen/variablen Anleihen und 500 Millionen Dollar an variablen Anleihen, die beide im Jahr 2026 fällig sind.
Der Rückzahlungsbetrag entspricht dem Nennwert zuzüglich aufgelaufener und nicht gezahlter Zinsen bis zum Rückzahlungstermin. Dieser strategische Schritt steht im Einklang mit der Verbindlichkeitenmanagementstrategie von Citigroup und zielt darauf ab, die Effizienz der Finanzierungs- und Kapitalstruktur zu verbessern.
Die Bank wird weiterhin Möglichkeiten zur Rückzahlung oder zum Rückkauf von Wertpapieren prüfen, basierend auf Faktoren wie wirtschaftlichem Wert, regulatorischen Änderungen, Auswirkungen auf die Nettozinsspanne, Kreditkosten, Laufzeit des Schuldenportfolios, Kapitalauswirkungen und Marktbedingungen.
- Strategic debt management to optimize funding costs and capital structure
- Early redemption demonstrates strong liquidity position
- None.
Insights
Citigroup's announcement to redeem
The early redemption consists of
From a financial perspective, this transaction indicates Citigroup is actively optimizing its debt profile, potentially to improve its net interest margin in the current interest rate environment. By retiring these notes approximately one year early, the bank demonstrates confidence in its liquidity position while potentially reducing future interest expenses.
For context, while
The announcement further indicates Citigroup will continue evaluating debt redemption opportunities based on economic value, regulatory changes, interest margin impact, and capital considerations - suggesting an ongoing strategic approach to balance sheet management.
While specific financial benefits aren't quantified in the announcement, this proactive liability management demonstrates disciplined capital stewardship and operational flexibility, which are positive indicators for a financial institution's long-term health.
The redemption date for the notes is March 17, 2025 (the “redemption date”). The cash redemption price for the notes payable on the redemption date will equal par plus accrued and unpaid interest, to but excluding, the redemption date.
The redemptions announced today are consistent with Citigroup's liability management strategy and reflect its ongoing efforts to enhance the efficiency of its funding and capital structure. Citigroup 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 Citigroup's net interest margin and borrowing costs, the overall remaining tenor of Citigroup's debt portfolio, capital impact, as well as overall market conditions.
Beginning on the redemption date, interest will no longer accrue on the notes.
Citibank, N.A. is the paying agent for the notes. For further information on the fixed rate/floating rate notes, please see the related prospectus supplement at the following web address: https://www.citigroup.com/rcs/citigpa/akpublic/storage/public/CitiMarch2022-4NC3-FXD-FRN-Final-Pro-Supp.pdf
For further information on the floating rate notes, please see the related prospectus supplement at the following web address: https://www.citigroup.com/rcs/citigpa/akpublic/storage/public/CitiMarch2022-4NC3-FRN-Final-Pro-Supp.pdf
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of
Additional information may be found at www.citigroup.com | X: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi
View source version on businesswire.com: https://www.businesswire.com/news/home/20250312168879/en/
Media Contact:
Danielle Romero Apsilos
212 816 2264
danielle.romeroapsilos@citi.com
Fixed Income Investor Contact:
Peter Demoise
212 559 2718
peter.demoise@citi.com
Source: Citigroup Inc.
FAQ
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