Citigroup to redeem $3.5 billion in notes due 2026

NEW YORK - Citigroup Inc. (Market cap: $118.85B) has announced its plan to redeem $3.5 billion worth of its 3.106% Fixed Rate / Floating Rate Notes due in 2026. The redemption, which will cover the entire issue, is set for April 8, 2025. On this date, the notes will be redeemed at par value, along with any accrued and unpaid interest. According to InvestingPro data, the bank currently trades at an attractive P/E ratio of 10.45, with its next earnings report scheduled for April 15, 2025.

This move is part of Citigroup’s broader liability management strategy, aiming to optimize the efficiency of its funding and capital structure. The company has indicated that it will continue to evaluate opportunities to redeem or repurchase securities. This decision will be based on a range of factors, including the economic value, regulatory changes, the potential effects on Citigroup’s net interest margin and borrowing costs, as well as the overall remaining duration of its debt portfolio, capital impact, and prevailing market conditions. InvestingPro analysis suggests the stock is currently undervalued, with multiple positive indicators available in the Pro Research Report, which provides comprehensive analysis of 1,400+ top US stocks.

Following the redemption date, interest will cease to accrue on these notes, with Citibank, N.A. serving as the paying agent.

The redemption aligns with Citigroup’s efforts to maintain a prudent approach to managing its liabilities and capital. It reflects the company’s ongoing commitment to financial discipline and strategic financial management.

Investors and interested parties can find additional details on the notes and the terms of redemption in the related prospectus supplement, which is available online.

Citigroup, a leading global bank, operates in over 180 countries and jurisdictions, offering a wide array of financial products and services to consumers, corporations, governments, and institutions. It has established itself as a key player in the financial sector, with a significant presence in wealth management and a strong footing in its home market of the United States. The bank maintains a solid 3.12% dividend yield and has consistently paid dividends for 15 consecutive years, demonstrating its commitment to shareholder returns.

The information for this announcement is based on a press release statement.

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