Citibank has announced plans to redeem $2.5 billion of outstanding notes due in 2026 as part of its broader liability management strategy and ongoing efforts to optimize its funding and capital structure.
The bank will redeem $2 billion of its 5.488% Notes due 2026 and $500 million of its Floating Rate Notes due 2026.
Both series will be redeemed in full on November 4, 2026.
The cash redemption price will equal par value plus accrued and unpaid interest through, but excluding, the redemption date.
Interest on the notes will stop accruing beginning on November 4.
Citibank is serving as the paying agent for the securities.
The bank said the redemptions are consistent with its ongoing liability management efforts and its strategy of improving the efficiency of its funding structure.
Citibank regularly evaluates opportunities to redeem or repurchase outstanding debt based on multiple factors.
Those considerations can include the economic value of a transaction, regulatory developments, the potential effect on net interest margin, borrowing costs, the remaining maturity profile of its debt portfolio, capital implications, and broader market conditions.
The redemption removes two securities from Citibank’s 2026 maturity schedule and gives the bank an opportunity to adjust the composition and cost of its outstanding funding.
Citibank’s decision also reflects the active management of bank balance sheets as financial institutions assess funding requirements, market pricing, regulatory capital standards, and changes in interest rates.
Citibank is part of Citi, which operates in more than 180 countries and jurisdictions.
The financial services group provides banking, capital markets, wealth management, and other products to corporations, governments, institutional investors, and individuals.
Citi has a particularly large presence in cross-border banking and institutional financial services.
Citibank said it will continue evaluating additional opportunities to redeem or repurchase securities when doing so supports its capital and funding objectives.
