Citigroup to redeem £99.9 million enhanced trust preferreds March 28

By Mary-Katherine Stinson

Lexington, Ky., Feb. 24 – Citigroup Inc. will redeem in full £99.9 million 6.829% fixed-to-floating rate enhanced TruPS issued by Citigroup Capital XVIII (Cusip: 172988AB3) on March 28, according to a press release.

The securities will be redeemed at par of £1,000 plus approximately £2.77058219 per each redeemed security in accrued and unpaid distributions to the redemption date.

On the redemption date, the securities will no longer be outstanding and interest will cease to accrue.

Bank of New York Mellon is the paying agent.

These securities are being redeemed as a result of a concurrent redemption in whole by Citigroup of the junior subordinated debt securities held by the capital trust which underlie the redeemed enhanced TruPS.

The company stated that this redemption serves to enhance the efficiency of its funding and capital structure and that they will consider more opportunities to redeem or repurchase securities based on and without limitation, the economic value, regulatory changes, potential impact on Citigroup's net interest margin and borrowing costs, the overall remaining tenor of Citigroup's debt portfolio, capital impact and overall market conditions.

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