Citigroup Announces $3 Billion Redemption of Trust Preferred Securities

  Citigroup Announces $3 Billion Redemption of Trust Preferred Securities

Business Wire

NEW YORK -- March 15, 2013

Citigroup Inc. is announcing the redemption, in whole, of the following four
series of its trust preferred securities:

the 7.125% TRUPS^® issued by Citigroup Capital VII (CUSIP: 17306N203);
the 6.950% TRUPS^® issued by Citigroup Capital VIII (CUSIP: 17306R204);
the 6.875% Enhanced TRUPS^® issued by Citigroup Capital XIV (CUSIP:
17309E200); and
the 6.500% Enhanced TRUPS^® issued by Citigroup Capital XV (CUSIP: 17310G202)
(collectively, the “Redeemed TRUPS^®”).

The redemption date for each series of Redeemed TRUPS^® is April 16, 2013. The
cash redemption price payable for each Redeemed TRUPS^® on the redemption date
will equal:

for Citigroup Capital VII, $25 plus $0.3018229167 in accumulated and unpaid
distributions;
for Citigroup Capital VIII, $25 plus $0.1496180556 in accumulated and unpaid
distributions;
for Citigroup Capital XIV, $25 plus $0.0763888889 in accumulated and unpaid
distributions; and
for Citigroup Capital XV, $25 plus $0.1399305556 in accumulated and unpaid
distributions.

These redemptions reflect Citigroup’s ongoing efforts to enhance the
efficiency of its funding and capital structure. Since the beginning of 2012
and including the redemptions announced today, Citigroup has retired $9.4
billion of trust preferred securities, reducing Citigroup’s overall funding
costs and efficiently deploying its ample liquidity.

The redemptions announced today were approved as part of Citi’s planned
capital actions pursuant to the 2013 Comprehensive Capital Analysis and Review
(CCAR), are consistent with Citi’s liability management strategy, and reflect
Citi’s strategy of continuing to optimize the capital structure under Basel
III. Citigroup will continue to consider opportunities to redeem or repurchase
trust preferred securities, based on several factors, including without
limitation, the economic value, potential impact on Citigroup’s net interest
margin and borrowing costs, the overall remaining tenor of Citigroup’s debt
portfolio, as well as overall market conditions.

Citigroup’s Tier 1 Common capital and related Tier 1 Common ratio, either
under Basel I or as estimated under Basel III, will not be affected by the
planned redemptions. Citigroup’s Basel I Tier 1 Capital and its Basel 1 Tier 1
Capital ratio are expected to decrease by approximately $3B and 30 basis
points, respectively.

The Redeemed TRUPS^® are being redeemed, along with the common securities
issued by Citigroup Capital VII, Citigroup Capital VIII, Citigroup Capital XIV
and Citigroup Capital XV (collectively, the “Capital Trusts”) and held by
Citigroup, as a result of the concurrent redemption in whole by Citigroup of
the junior subordinated debt securities held by each Capital Trust which
underlie the respective series of Redeemed TRUPS^®.

Beginning on the redemption date, the Redeemed TRUPS^® will no longer be
considered outstanding and distributions will no longer accrue on such
securities.

The Bank of New York Mellon is the paying agent for the Redeemed TRUPS^®.

For further information on the Redeemed TRUPS^®, please see the related
prospectuses at the following web addresses:

For Citigroup Capital VII:

http://www.sec.gov/Archives/edgar/data/831001/000095012301504594/y51412b4e424b4.txt

For Citigroup Capital VIII:

http://www.sec.gov/Archives/edgar/data/831001/000095012301506443/y53064bae424b4.txt

For Citigroup Capital XIV:

http://www.sec.gov/Archives/edgar/data/831001/000095012306008693/y23012e424b2.htm

For Citigroup Capital XV:

http://www.sec.gov/Archives/edgar/data/831001/000095012306011840/y24815bce424b2.htm

Citi, the leading global bank, has approximately 200 million customer accounts
and does business in more than 160 countries and jurisdictions. Citi provides
consumers, corporations, governments and institutions with a broad range of
financial products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, transaction services,
and wealth management..

Certain statements in this press release, including without limitation the
expected impact of the redemptions on Citigroup's Tier 1 Capital, Tier 1
Common, net interest margin, borrowing costs and capital position under Basel
III, are "forward-looking statements" within the meaning of the rules and
regulations of the U.S. Securities and Exchange Commission. These statements
are based on management's current expectations and are subject to uncertainty
and changes in circumstances. Actual results and capital and other financial
condition may differ materially from those included in these statements due to
a variety of factors, including without limitation the actual completion of
the announced redemptions, the completion of the final analysis of the capital
impact on Citigroup as a result of the redemptions and the factors contained
in Citi's filings with the U.S. Securities and Exchange Commission, including
without limitation the "Risk Factors" section of Citi's 2012 Annual Report on
Form 10-K. Precautionary statements included in such filings should be read in
conjunction with this release.

Additional information may be found at www.citigroup.com | Twitter: @Citi |
YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook:
www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

Contact:

Citigroup Inc.
Media:
Mark Costiglio, 212-559-4114
Shannon Bell, 212-793-6206
or
Investors:
Susan Kendall, 212-559-2718
or
Fixed Income Investors:
Peter Kapp, 212-559-5091
 
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