Citigroup Announces $2.75 Billion Redemption of 1.462% Fixed Rate / Floating Rate Notes Due 2027 and $400 Million Redemption of Floating Rate Notes Due 2027
Citigroup Announces $2.75 Billion Redemption of 1.462% Fixed Rate / Floating Rate Notes Due 2027 and $400 Million Redemption of Floating Rate Notes Due 2027
Fixed rate and floating rate notes are debt securities that pay interest to holders: fixed-rate notes give a steady, unchanging interest payment like a locked-in coupon, while floating-rate notes reset their interest periodically based on a reference rate (so payments rise or fall with market rates). Investors care because fixed notes offer predictable income but can lose value if market rates climb, while floating notes protect against rising rates but deliver variable cash flow.
floating rate notesfinancial
Floating rate notes are debt securities that pay interest that adjusts periodically based on a short-term interest benchmark (for example, LIBOR or SOFR), so the cash interest you receive goes up or down with market rates. For investors they act like an adjustable-rate loan: they help protect income when overall interest rates rise and generally lose less value than fixed-rate bonds when rates move, making them useful for managing interest-rate risk.
redemption datefinancial
The redemption date is the specific day when a debt-like security (such as a bond, preferred share, or certificate) must be repaid by the issuer and the investor receives the principal plus any final interest or dividends. It matters to investors because it tells when cash will return, shapes the effective return and price of the security, and creates reinvestment and timing considerations—like knowing when a loan is due so you can plan what to do with the returned money.
parfinancial
"Par" is the value assigned to a bond or stock when it is first issued, often representing its face or original price. For bonds, it typically means $1,000, which is the amount the issuer promises to pay back at maturity. Knowing the par value helps investors understand if they are buying or selling at a premium (more than par) or a discount (less than par).
accrued and unpaid interestfinancial
Accrued and unpaid interest is the interest that has built up on a loan or debt but hasn't been paid yet. It's like owing your friend money for a favor over time—you're expected to pay it later, even though you haven't paid it yet. This matters because it shows how much you owe beyond the original amount borrowed.
liability management strategyfinancial
A liability management strategy is a company’s plan for handling its debts and other payment obligations by refinancing, repaying early, changing payment terms, or swapping debt for other securities to lower cost, extend timelines, or reduce risk. For investors it’s like watching a household reorganize mortgages to cut monthly bills and avoid surprises: strong strategies improve cash flow and reduce default risk, while weak ones can signal funding stress or share dilution.
paying agentfinancial
A paying agent is a bank or company that helps deliver payments, like interest or dividends, to investors. It’s like a trusted middleman who makes sure everyone gets their money on time, so investors don’t have to handle the details themselves.
prospectus supplementregulatory
A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.
See more from StockTitan in Google Search and AI answers.Adds StockTitan as a preferred source · opens Google
NEW YORK--(BUSINESS WIRE)--
Citigroup Inc. is announcing the redemption, in whole, constituting $2,750,000,000 of its 1.462% Fixed Rate / Floating Rate Notes due 2027 (the “fixed rate/floating rate notes”) (ISIN: US172967NA50) and the redemption, in whole, constituting $400,000,000 of its Floating Rate Notes due 2027 (the “floating rate notes” and, together with the fixed rate/floating rate notes, the “notes”) (ISIN: US172967MZ11).
The redemption date for the notes is June 9, 2026 (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.
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 the United States. Citi does business in more than 180 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.
