Chicago, Oct. 28 – Citigroup Inc. sold $1 billion (A3/BBB+/A) in an inaugural offering of social finance notes on Wednesday that were part of a larger three-part $4 billion offer, according to multiple FWPs filed with the Securities and Exchange Commission.
The other two parts were straight bonds.
The social notes are fixed-to-floating-rate notes with a four-year tenor. The 1.281% coupon converts in the final year to a floating rate based on SOFR plus a 52.8 basis points margin with quarterly resets.
The notes priced at par with a 52 bps spread over the related Treasury note.
The notes have a make-whole call starting six months after the issue date at Treasuries plus 10 bps. After Nov. 3, 2024, the notes can be redeemed at par.
Citigroup Global Markets Inc. was the sole book manager. Joint lead managers were Cabrera Capital Markets LLC, CastleOak Securities, LP, Samuel A. Ramirez & Co., LLC and Stern Brothers & Co.
Proceeds are going to be used to finance or refinance a portion of Citigroup’s social finance assets.
Specifically, according to an issuer press release, proceeds will be used to finance a range of projects, including those that expand access to financial services, affordable housing, basic infrastructure, healthcare, and education in underserved and unbanked communities in emerging markets.
Citigroup is a New York-based financial services company.
| Issuer: | Citigroup Inc.
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| Issue: | Fixed-to-floating-rate callable social finance senior notes
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| Amount: | $1 billion
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| Maturity: | Nov. 3, 2025
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| Bookrunners: | Citigroup Global Markets Inc.
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| Joint lead managers: | Cabrera Capital Markets LLC, CastleOak Securities, LP, Samuel A. Ramirez & Co., LLC and Stern Brothers & Co.
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| Co-managers: | Blaylock Van, LLC, C.L. King & Associates, Inc., Great Pacific Securities, Guzman & Co., Loop Capital Markets LLC, MFR Securities, Inc., North South Capital LLC and Telsey Advisory Group LLC
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| Coupon: | 1.281% starting rate; resets to SOFR plus 52.8 bps starting Nov. 3, 2024
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| Price: | Par
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| Yield: | 1.281%
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| Spread: | Treasuries plus 52 bps
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| Call features: | Make-whole call starting May 3, 2022 at Treasuries plus 10 bps; after Nov. 3, 2024 at par
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| Trade date: | Oct. 27
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| Settlement date: | Nov. 3
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| Ratings: | Moody’s: A3
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| S&P: BBB+
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| Fitch: A
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| Distribution: | SEC registered
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| Cusip: | 172967ND9
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