Citigroup Announces SGD 100 Million Redemption of 3.50% Fixed Rate / Floating Rate Subordinated Notes due April 2020 and Approximately CHF 182.1 Million Redemption of 2.75% Fixed / Floating Rate Callable Subordinated Notes due April 2021
Citigroup Inc. is announcing the redemption, in whole, constituting SGD 100,000,000 of its 3.50% Fixed Rate / Floating Rate Subordinated Notes due April 2020 (the “2020 notes”) (ISIN XS0216282557), and the redemption, in whole, constituting CHF 182,115,000 in aggregate principal amount, of its 2.75% Fixed / Floating Rate Callable Subordinated Notes due April 2021 (the “2021 notes” and together with the 2020 notes, the “notes”) (ISIN: CH0024683192).
The redemption date for the 2020 notes is April 9, 2018 (the “2020 notes redemption date”), and the redemption date for the 2021 notes is April 6, 2018 (the “2021 notes redemption date” and together with the 2020 notes redemption date, the “redemption dates”). The cash redemption price payable for the 2020 notes on the 2020 notes redemption date will equal par plus approximately SGD 1,200,000 in accrued and unpaid interest, and the cash redemption price payable for the 2021 notes on the 2021 notes redemption date will equal par plus approximately CHF 206,736.95 in accrued and unpaid interest.
The redemptions announced today are consistent with Citigroup’s liability management strategy, and reflects its ongoing efforts to enhance the efficiency of its funding and capital structure. Since 2015, Citigroup redeemed or retired $28.7 billion of its securities, reducing Citigroup’s overall funding costs. 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.
Citigroup’s Basel III Tier 2 Capital will not be materially affected by the planned redemptions.
Beginning on the redemption dates, 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 2020 notes. For further information on the 2020 notes, please see the related final terms at the following web address: http://www.citigroup.com/citi/fixedincome/data/docs/350due040820mtn.pdf
Credit Suisse is the paying agent on the 2021 notes. For further information on the 2021 notes, please see the related final terms at the following web address: http://www.citigroup.com/citi/fixedincome/data/docs/275due040621mtn.pdf
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi 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.
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