Citigroup to redeem $2.5 billion in notes due 2025

Citigroup to redeem $2.5 billion in notes due 2025

NEW YORK - Citigroup Inc (NYSE: C ). announced it will redeem $2.5 billion worth of notes due in 2025. This includes $2 billion of its 0.981% Fixed Rate / Floating Rate Notes and $500 million of its Floating Rate Notes. The redemption is scheduled for May 1, 2024, and is part of the company's strategy to manage liabilities and improve the efficiency of its funding and capital structure.

The redemption price will be at par, in addition to accrued and unpaid interest up to but not including the redemption date. Citigroup's move aligns with its ongoing efforts to optimize its debt portfolio, taking into account factors such as economic value, regulatory changes, impact on net interest margin and borrowing costs, and market conditions.

From May 1, 2024, interest will cease to accrue on these notes. Citibank, N.A. has been designated as the paying agent for the transaction. Further details on the notes can be found in the respective prospectus supplements available on Citigroup's website.

This action reflects Citigroup's proactive approach to capital management and its commitment to maintaining a strong balance sheet. The company continues to evaluate opportunities to redeem or repurchase securities as part of its broader financial strategy.

The information regarding this redemption is based on a press release statement from Citigroup Inc.

InvestingPro Insights

In light of Citigroup Inc.'s recent announcement to redeem $2.5 billion worth of notes, a look at the company's financial metrics provides further context to this strategic decision. Citigroup's market capitalization stands at a robust $119.59 billion, reflecting its significant presence in the banking industry. The company's Price/Earnings (P/E) ratio is 18.26, which aligns with the industry average, indicating that the stock may be fairly valued in terms of its earnings.

InvestingPro data shows that Citigroup has experienced a large price uptick over the last six months, with a 60.62% increase in total return. This performance is complemented by a notable 16.23% return over the last three months. This recent strong performance could be a contributing factor to why the company feels confident in managing its liabilities through the redemption of notes.

An InvestingPro Tip highlights that Citigroup has maintained dividend payments for 14 consecutive years, showcasing its commitment to returning value to shareholders. This consistency can be seen in the company's current dividend yield of 3.43%, which may appeal to income-focused investors.

For those interested in a deeper dive into Citigroup's financial health and future prospects, InvestingPro offers additional insights and metrics. There are 8 more InvestingPro Tips available for Citigroup, which can be accessed at Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a comprehensive toolset for analyzing and tracking investment decisions.

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