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Citigroup expecting to issue about $4 billion net of structured notes in 2010
By Jennifer Lanning Drey
Portland, Ore., April 23 - Citigroup, Inc. plans to issue less than $15 billion of long-term debt in 2010, which includes the expected issuance of about $4 billion net in structured notes and roughly $8.7 billion of unsecured senior debt, Eric Aboaf, Citi's treasurer, said during a Friday conference call held for fixed-income investors.
Citi's 2010 needs are largely pre-funded, but the company will be opportunistically looking at issuing debt during the year, Aboaf said.
"You will notice a significant shift in our funding plans relative to 2008 and 2009 issuance levels," he said.
"As we maintain deposits and reduce the loans in holding, we have less of a need to reissue our maturing debt on a dollar-for-dollar basis."
Citi announced a plan in the fourth quarter of 2009 to retire its older debt nearing maturity and has since successfully tendered $3 billion of debt under the plan.
Citi announced another $1.1 billion tender offer on Friday, targeting older subordinated debt nearing maturity.
"Our current cash position affords us the flexibility to invest in earning assets or to retire liabilities," Aboaf said.
Also during Friday's call, Aboaf said Citi is seeing signs of improved credit trends, while at the same time, the company has been making progress at de-risking its balance sheet and reducing its exposures.
"Our capital base is strong, no matter which capital measure you use, and we continue to make progress in reducing and de-risking the balance sheet through asset dispositions, which provide us with the ample liquidity to strategically invest in the future," he said.
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