Citigroup Inc. (C) Chief Financial Officer John Gerspach said the bank has about $280 million in loans tied to commodities at two ports in China, the nation where authorities are investigating whether stockpiled metals fall short of collateral obligations.
Citigroup made the loans to non-Chinese subsidiaries of large, multinational corporations, and the contracts are guaranteed by the parents, Gerspach said today on a call with fixed-income investors. The activities are isolated at the ports of Qingdao and Penglai, he said.
The New York-based bank has about $400 million in total commodity financing to clients in China, Gerspach said.
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