Citigroup Announces Approximately €452 Million Redemption Of 4.25% Fixed Rate/Floating Rate Subordinated Notes Due 2030
Citigroup has announced the complete redemption of its €451,934,000 4.25% Fixed Rate/Floating Rate Subordinated Notes due 2030. The redemption is scheduled for February 25, 2025, with the cash redemption price equaling par value plus accrued and unpaid interest up to the redemption date.
This strategic move aligns with Citigroup's liability management strategy and ongoing efforts to optimize its funding and capital structure. The decision to redeem these notes was based on multiple factors, including economic value, regulatory changes, potential impact on net interest margin, borrowing costs, debt portfolio tenor, capital impact, and market conditions.
After the redemption date, the notes (ISIN: XS0213026197) will cease to accrue interest, with Citibank, N.A. serving as the paying agent.
Citigroup ha annunciato il rimborso completo delle sue Obbligazioni Subordinate a Tasso Fisso/Variabile da €451.934.000 a scadenza nel 2030. Il rimborso è previsto per il 25 febbraio 2025, con il prezzo di rimborso in contante che corrisponde al valore nominale più gli interessi accumulati e non pagati fino alla data di rimborso.
Questa mossa strategica si allinea con la strategia di gestione delle passività di Citigroup e gli sforzi continui per ottimizzare la sua struttura di finanziamento e capitale. La decisione di rimborsare queste obbligazioni è stata presa sulla base di molteplici fattori, tra cui il valore economico, le modifiche normative, l'impatto potenziale sul margine di interesse netto, i costi di prestito, la scadenza del portafoglio debitorio, l'impatto sul capitale e le condizioni di mercato.
Dopo la data di rimborso, le obbligazioni (ISIN: XS0213026197) cesseranno di maturare interessi, con Citibank, N.A. che fungerà da agente di pagamento.
Citigroup ha anunciado el reembolso completo de sus Notas Subordinadas a Tasa Fija/Variable del 4.25% de €451,934,000 con vencimiento en 2030. El reembolso está programado para el 25 de febrero de 2025, y el precio de reembolso en efectivo es igual al valor nominal más los intereses acumulados y no pagados hasta la fecha de reembolso.
Este movimiento estratégico se alinea con la estrategia de gestión de pasivos de Citigroup y con los esfuerzos continuos para optimizar su financiación y estructura de capital. La decisión de reembolsar estas notas se basó en múltiples factores, incluidos el valor económico, cambios regulatorios, el impacto potencial en el margen de interés neto, costos de endeudamiento, plazo de la cartera de deuda, impacto en el capital y condiciones del mercado.
Después de la fecha de reembolso, las notas (ISIN: XS0213026197) dejarán de acumular intereses, y Citibank, N.A. actuará como agente de pago.
시티그룹은 2030년 만기인 4.25% 고정금리/변동금리 후순위 채권을 €451,934,000 규모로 전액 상환할 것이라고 발표했습니다. 상환은 2025년 2월 25일로 예정되어 있으며, 현금 상환가는 액면가와 상환일까지 누적된 미지급 이자를 포함합니다.
이 전략적 결정은 시티그룹의 부채 관리 전략과 자금 및 자본 구조 최적화를 위한 지속적인 노력에 부합합니다. 이러한 채권을 상환하기로 한 결정은 경제적 가치, 규제 변화, 순이자 마진에 미치는 잠재적 영향, 차입 비용, 채무 포트폴리오 만기, 자본 영향 및 시장 조건을 포함한 여러 요인에 기반했습니다.
상환일 이후에는 해당 채권 (ISIN: XS0213026197)이 더 이상 이자를 발생하지 않으며, 시티뱅크(N.A.)가 지급 대행자로서 역할을 하게 됩니다.
Citigroup a annoncé le remboursement complet de ses Obligations Subordonnées à Taux Fixe/Variable de 4,25% d'un montant de 451 934 000 € arrivant à échéance en 2030. Le remboursement est prévu pour le 25 février 2025, le prix de remboursement en espèces correspondant à la valeur nominale augmentée des intérêts courus et non payés jusqu'à la date de remboursement.
Ce mouvement stratégique s'inscrit dans la stratégie de gestion des passifs de Citigroup et ses efforts continus pour optimiser sa structure de financement et de capital. La décision de rembourser ces obligations a été prise sur la base de plusieurs facteurs, y compris la valeur économique, les changements réglementaires, l'impact potentiel sur la marge d'intérêt nette, les coûts d'emprunt, la durée du portefeuille de dettes, l'impact sur le capital et les conditions de marché.
Après la date de remboursement, les obligations (ISIN : XS0213026197) cesseront de produire des intérêts, Citibank, N.A. agissant en tant qu'agent payeur.
Citigroup hat die vollständige Rückzahlung seiner 4,25 % festverzinslichen/variabel verzinslichen nachrangigen Anleihen im Wert von 451.934.000 € mit Fälligkeit im Jahr 2030 angekündigt. Die Rückzahlung ist für den 25. Februar 2025 geplant, wobei der Rückzahlungspreis in bar dem Nennwert zuzüglich aufgelaufener und nicht bezahlter Zinsen bis zum Rückzahlungstermin entspricht.
Dieser strategische Schritt steht im Einklang mit der Haftungsmanagement-Strategie von Citigroup und den laufenden Bemühungen, ihre Finanzierungs- und Kapitalstruktur zu optimieren. Die Entscheidung, diese Anleihen zurückzuzahlen, basierte auf mehreren Faktoren, einschließlich wirtschaftlichem Wert, regulatorischen Änderungen, potenziellen Auswirkungen auf die Nettomargen, Finanzierungskosten, Laufzeit des Schuldenportfolios, Kapitalauswirkungen und Marktbedingungen.
Nach dem Rückzahlungstermin werden die Anleihen (ISIN: XS0213026197) keine Zinsen mehr auflaufen, wobei Citibank, N.A. als Zahlstelle fungiert.
- Strategic optimization of funding and capital structure
- Early redemption of €451.9 million in debt obligations
- Potential improvement in borrowing costs and net interest margin
- None.
Insights
This early redemption of
The redemption of these hybrid fixed-rate/floating-rate notes, originally due in 2030, carries several implications:
- By retiring these 4.25% notes, Citi can potentially refinance at more favorable rates in today's market, enhancing its interest margin efficiency.
- The move impacts Citi's regulatory capital composition, as subordinated notes typically qualify as Tier 2 capital. This suggests confidence in the bank's capital position and ability to maintain required regulatory ratios without these instruments.
- The redemption aligns with the broader trend of major banks optimizing their capital structures amid evolving regulatory requirements and market conditions.
From a balance sheet perspective, this liability management exercise demonstrates Citi's proactive approach to capital optimization. The bank's consideration of factors including economic value, regulatory changes and net interest margin impact reflects a comprehensive strategy to enhance shareholder value while maintaining robust capital levels.
The redemption date for the notes is February 25, 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 redemption announced today is consistent with Citigroup's liability management strategy and reflects 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 notes, please see the related final terms at the following web address: https://www.citigroup.com/rcs/citigpa/akpublic/storage/public/425due022530mtn.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
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View source version on businesswire.com: https://www.businesswire.com/news/home/20250124566310/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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