Citigroup Announces Full Redemption of Series V Preferred Stock
Citigroup has announced the complete redemption of its Series V Preferred Stock, totaling $1.5 billion in aggregate liquidation preference. The redemption will occur on January 30, 2025, with holders receiving a cash redemption price of $1,000 per Depositary Share. Stockholders of record as of January 17, 2025, will receive a final semi-annual dividend of $23.50 per Depositary Share on the redemption date.
This strategic move aligns with Citigroup's liability management strategy and aims to enhance the efficiency of its funding and capital structure. The decision was based on various factors, including economic value, regulatory changes, potential impact on net interest margin, borrowing costs, and overall market conditions. After the redemption date, the Depositary Shares will cease to be outstanding, and no further dividends will accrue.
Citigroup ha annunciato il completo riscatto delle sue Azioni Preferenziali Serie V, per un totale di 1,5 miliardi di dollari di preferenza di liquidazione complessiva. Il riscatto avverrà il 30 gennaio 2025, con i detentori che riceveranno un prezzo di riscatto in contante di 1.000 dollari per Azione Depositaria. Gli azionisti registrati al 17 gennaio 2025 riceveranno un ultimo dividendo semestrale di 23,50 dollari per Azione Depositaria alla data di riscatto.
Questa mossa strategica è in linea con la strategia di gestione delle passività di Citigroup e mira a migliorare l'efficienza della sua struttura di finanziamento e capitale. La decisione si basa su vari fattori, tra cui il valore economico, i cambiamenti normativi, l'impatto potenziale sul margine di interesse netto, i costi di finanziamento e le condizioni di mercato complessive. Dopo la data di riscatto, le Azioni Depositarie cesseranno di esistere e non accumuleranno ulteriori dividendi.
Citigroup ha anunciado el rescate completo de sus Acciones Preferenciales Serie V, totalizando 1.5 mil millones de dólares en preferencia de liquidación agregada. El rescate ocurrirá el 30 de enero de 2025, con los tenedores recibiendo un precio de rescate en efectivo de 1,000 dólares por Acción Depositante. Los accionistas registrados al 17 de enero de 2025 recibirán un dividendo semestral final de 23.50 dólares por Acción Depositante en la fecha de rescate.
Este movimiento estratégico se alinea con la estrategia de gestión de pasivos de Citigroup y tiene como objetivo mejorar la eficiencia de su estructura de financiación y capital. La decisión se basó en varios factores, incluidos el valor económico, cambios regulatorios, el impacto potencial en el margen de interés neto, los costos de financiación y las condiciones del mercado en general. Después de la fecha de rescate, las Acciones Depositantes dejarán de estar en circulación y no se acumularán más dividendos.
시티그룹은 총 15억 달러의 청산 우선 순위를 포함하여 시리즈 V 우선주를 전량 상환한다고 발표했습니다. 상환은 2025년 1월 30일에 이루어지며, 주주들은 각 보관 주식당 1,000달러의 현금 상환 가격을 받게 됩니다. 2025년 1월 17일 기준 주주들은 상환일에 보관 주식당 23.50달러의 마지막 반기 배당금을 받게 됩니다.
이번 전략적 결정은 시티그룹의 부채 관리 전략과 일치하며 자금 조달 및 자본 구조의 효율성을 향상시키는 것을 목표로 하고 있습니다. 이 결정은 경제적 가치, 규제 변화, 순이자 마진에 대한 잠재적 영향, 차입 비용 및 전반적인 시장 조건 등 여러 요인을 바탕으로 내려졌습니다. 상환 후, 보관 주식은 더 이상 유통되지 않으며 추가적인 배당금은 발생하지 않습니다.
Citigroup a annoncé le rachat complet de ses actions privilégiées de série V, totalisant 1,5 milliard de dollars en préférence de liquidation globale. Le rachat aura lieu le 30 janvier 2025, les détenteurs recevant un prix de rachat en espèces de 1 000 dollars par action dépositaire. Les actionnaires enregistrés au 17 janvier 2025 recevront un dernier dividende semestriel de 23,50 dollars par action dépositaire à la date de rachat.
Cette manœuvre stratégique s'inscrit dans le cadre de la stratégie de gestion des passifs de Citigroup et vise à améliorer l'efficacité de sa structure de financement et de son capital. La décision a été prise sur la base de divers facteurs, notamment la valeur économique, les changements réglementaires, l'impact potentiel sur la marge d'intérêt nette, les coûts d'emprunt et les conditions générales du marché. Après la date de rachat, les actions dépositaires cesseront d'être en circulation et aucun dividende supplémentaire ne sera accumulé.
Citigroup hat die vollständige Rückzahlung ihrer Serie V Vorzugsaktien angekündigt, die insgesamt 1,5 Milliarden Dollar an Liquidationspräferenz beträgt. Die Rückzahlung erfolgt am 30. Januar 2025, wobei die Inhaber einen Rückzahlungsbetrag von 1.000 Dollar pro Depotanteil erhalten. Aktionäre, die am 17. Januar 2025 eingetragen sind, erhalten am Rückzahlungstag eine letzte halbjährliche Dividende von 23,50 Dollar pro Depotanteil.
Dieser strategische Schritt entspricht der Schuldenmanagementstrategie von Citigroup und zielt darauf ab, die Effizienz ihrer Finanzierungs- und Kapitalstruktur zu verbessern. Die Entscheidung basierte auf verschiedenen Faktoren, einschließlich wirtschaftlicher Wert, regulatorischer Änderungen, potenzieller Auswirkungen auf die Nettozinsspanne, Finanzierungskosten und allgemeinen Marktbedingungen. Nach dem Rückzahlungstermin werden die Depotanteile nicht mehr ausstehen und es werden keine weiteren Dividenden mehr anfallen.
- Strategic enhancement of funding and capital structure efficiency
- Full redemption of $1.5 billion in preferred stock indicates strong capital position
- Final dividend payment of $23.50 per share maintained for current holders
- Reduction in capital diversity through elimination of preferred stock series
- Potential impact on borrowing costs and net interest margin
Insights
Citigroup's $1.5 billion preferred stock redemption signals a strategic shift in their capital management approach, with several key implications for investors:
The timing of this redemption is particularly noteworthy given the current interest rate environment. The Series V shares, with their 4.700% Fixed Rate/Floating Rate structure, were likely becoming less cost-effective compared to alternative funding sources. By redeeming these shares, Citigroup can potentially refinance at more favorable rates or optimize their capital stack with different instruments.
This move demonstrates proactive balance sheet management in three important ways:
- Enhances capital efficiency by removing relatively expensive preferred equity from the capital structure
- Improves the bank's net interest margin by reducing high-cost funding sources
- Shows strong liquidity position, as the
$1.5 billion redemption is being executed from existing resources
The redemption also reflects broader industry trends where major banks are actively managing their capital structures in response to regulatory changes and market conditions. This type of liability management is particularly important for global systemically important banks (G-SIBs) like Citigroup, as it helps optimize their regulatory capital ratios while maintaining operational flexibility.
For investors, this action indicates Citigroup's confidence in its capital position and ability to meet regulatory requirements without these preferred shares. The redemption could lead to modest earnings per share accretion, as eliminating the preferred dividend payments reduces the bank's overall cost of capital.
The redemption date is January 30, 2025, for the Preferred Stock and related Depositary Shares (the “Redemption Date”). The cash redemption price, payable on the Redemption Date for each Depositary Share, will equal
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’s redemptions are 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, the Depositary Shares representing the redeemed Preferred Stock will no longer be outstanding and dividends will no longer accrue on such securities.
Computershare Trust Company, N.A. (“Computershare”) is the paying agent for the Depositary Shares. The paying agent’s address is Computershare Trust Company, Attn: Corporate Actions, 150 Royall Street, Suite 101,
For further information on the Preferred Stock and the related Depositary Shares, please see the prospectus at the following web address: https://www.citigroup.com/rcs/citigpa/akpublic/storage/public/CitiJan012320PreferredStockSeriesV.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/20250124231364/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.
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