| DEBT |
19. DEBT
Short-Term Borrowings
Short-term borrowings consist of commercial paper and other borrowings with weighted average interest rates at December 31 as follows:
|
|
2012 |
|
|
2011 |
|
|
|
|
|
|
Weighted |
|
|
|
|
|
Weighted |
|
| In millions of dollars |
|
Balance |
|
average |
|
|
Balance |
|
average |
|
| Commercial paper |
|
|
|
|
|
|
|
|
|
|
|
|
| Bank |
|
$ |
11,092 |
|
0.59 |
% |
|
$ |
14,872 |
|
0.32 |
% |
| Other non-bank |
|
|
378 |
|
0.84 |
|
|
|
6,414 |
|
0.49 |
|
|
|
$ |
11,470 |
|
|
|
|
$ |
21,286 |
|
|
|
| Other borrowings (1) |
|
|
40,557 |
|
1.06 |
% |
|
|
33,155 |
|
1.09 |
% |
| Total |
|
$ |
52,027 |
|
|
|
|
$ |
54,441 |
|
|
|
| (1) |
|
At December 31, 2012 and December 31, 2011, collateralized short-term advances from the Federal Home Loan Banks were $4 billion and $5 billion, respectively. |
Borrowings under bank lines of credit may be at interest rates based on LIBOR, CD rates, the prime rate, or bids submitted by the banks. Citigroup pays commitment fees for its lines of credit.
Some of Citigroup’s non-bank subsidiaries have credit facilities with Citigroup’s subsidiary depository institutions, including Citibank, N.A. Borrowings under these facilities are secured in accordance with Section 23A of the Federal Reserve Act.
Citigroup Global Markets Holdings Inc. (CGMHI) has borrowing agreements consisting of facilities that CGMHI has been advised are available, but where no contractual lending obligation exists. These arrangements are reviewed on an ongoing basis to ensure flexibility in meeting CGMHI’s short-term requirements.
Long-Term Debt
|
|
|
|
|
|
|
|
Balances at |
|
|
|
|
|
|
|
December 31, |
|
|
Weighted |
|
|
|
|
|
|
|
|
|
|
|
average |
|
|
|
|
|
|
|
|
|
| In millions of dollars |
|
coupon |
|
|
Maturities |
|
2012 |
|
|
2011 |
| Citigroup |
|
|
|
|
|
|
|
|
|
|
|
| Senior notes |
|
4.29 |
% |
|
2013–2098 |
|
$ |
138,862 |
|
$ |
136,468 |
| Subordinated notes (1) |
|
4.40 |
|
|
2013–2036 |
|
|
27,581 |
|
|
29,177 |
| Junior subordinated notes |
|
|
|
|
|
|
|
|
|
|
|
| relating to trust preferred |
|
|
|
|
|
|
|
|
|
|
|
| securities |
|
7.14 |
|
|
2031–2067 |
|
|
10,110 |
|
|
16,057 |
| Bank (2) |
|
|
|
|
|
|
|
|
|
|
|
| Senior notes |
|
1.91 |
|
|
2013–2039 |
|
|
50,527 |
|
|
77,036 |
| Subordinated notes (1) |
|
3.29 |
|
|
2013–2039 |
|
|
707 |
|
|
859 |
| Non-bank |
|
|
|
|
|
|
|
|
|
|
|
| Senior notes |
|
3.64 |
|
|
2013–2097 |
|
|
11,651 |
|
|
63,712 |
| Subordinated notes (1) |
|
2.26 |
|
|
2013–2017 |
|
|
25 |
|
|
196 |
| Total (3) |
|
|
|
|
|
|
$ |
239,463 |
|
$ |
323,505 |
| Senior notes |
|
|
|
|
|
|
$ |
201,040 |
|
$ |
277,216 |
| Subordinated notes (1) |
|
|
|
|
|
|
|
28,313 |
|
|
30,232 |
| Junior subordinated notes |
|
|
|
|
|
|
|
|
|
|
|
| relating to trust preferred |
|
|
|
|
|
|
|
|
|
|
|
| securities |
|
|
|
|
|
|
|
10,110 |
|
|
16,057 |
| Total |
|
|
|
|
|
|
$ |
239,463 |
|
$ |
323,505 |
| Note: |
Citigroup Funding Inc. (CFI) was previously a first-tier subsidiary of Citigroup Inc., issuing commercial paper, medium-term notes and structured equity-linked and credit-linked notes. The debt of CFI was guaranteed by Citigroup Inc. On December 31, 2012, CFI was merged into Citigroup Inc. |
| (1) |
|
Includes notes that are subordinated within certain countries, regions or subsidiaries. |
| (2) |
|
Represents Citibank, N.A., as well as subsidiaries of Citibank and Banamex. At December 31, 2012 and 2011, collateralized long-term advances from the Federal Home Loan Banks were $16.3 billion and $11.0 billion, respectively. |
| (3) |
|
Includes senior notes with carrying values of $186 million issued to Safety First Trust Series 2007-4, 2008-1, 2008-2, 2008-3, 2008-4, 2008-5, 2008-6, 2009-1, 2009-2, and 2009-3 at December 31, 2012 and $215 million issued to Safety First Trust Series 2007-3, 2007-4, 2008-1, 2008-2, 2008-3, 2008-4, 2008-5, 2008-6, 2009-1, 2009-2, and 2009-3 at December 31, 2011. Citigroup owns all of the voting securities of the Safety First Trusts. The Safety First Trusts have no assets, operations, revenues or cash flows other than those related to the issuance, administration and repayment of the Safety First Trust securities and the Safety First Trusts’ common securities. |
CGMHI has committed long-term financing facilities with unaffiliated banks. At December 31, 2012, CGMHI had drawn down $300 million available under these facilities. Generally, a bank can terminate these facilities by giving CGMHI one-year prior notice.
The Company issues both fixed and variable rate debt in a range of currencies. It uses derivative contracts, primarily interest rate swaps, to effectively convert a portion of its fixed rate debt to variable rate debt and variable rate debt to fixed rate debt. The maturity structure of the derivatives generally corresponds to the maturity structure of the debt being hedged. In addition, the Company uses other derivative contracts to manage the foreign exchange impact of certain debt issuances. At December 31, 2012, the Company’s overall weighted average interest rate for long-term debt was 3.88% on a contractual basis and 2.71% including the effects of derivative contracts.
Aggregate annual maturities of long-term debt obligations (based on final maturity dates) including trust preferred securities are as follows:
| In millions of dollars |
|
2013 |
|
2014 |
|
2015 |
|
2016 |
|
2017 |
|
Thereafter |
|
Total |
| Bank |
|
$ |
16,601 |
|
$ |
9,862 |
|
$ |
8,588 |
|
$ |
6,320 |
|
$ |
2,943 |
|
$ |
6,920 |
|
$ |
51,234 |
| Non-bank |
|
|
1,586 |
|
|
2,921 |
|
|
781 |
|
|
800 |
|
|
52 |
|
|
5,536 |
|
|
11,676 |
| Parent company |
|
|
24,464 |
|
|
24,243 |
|
|
19,677 |
|
|
12,737 |
|
|
21,156 |
|
|
74,276 |
|
|
176,553 |
| Total |
|
$ |
42,651 |
|
$ |
37,026 |
|
$ |
29,046 |
|
$ |
19,857 |
|
$ |
24,151 |
|
$ |
86,732 |
|
$ |
239,463 |
Long-term debt outstanding includes trust preferred securities with a balance sheet carrying value of $10,110 million and $16,057 million at December 31, 2012 and December 31, 2011, respectively. In issuing these trust preferred securities, Citi formed statutory business trusts under the laws of the State of Delaware. The trusts exist for the exclusive purposes of (i) issuing trust preferred securities representing undivided beneficial interests in the assets of the trust; (ii) investing the gross proceeds of the trust preferred securities in junior subordinated deferrable interest debentures (subordinated debentures) of its parent; and (iii) engaging in only those activities necessary or incidental thereto. Generally, upon receipt of certain regulatory approvals, Citigroup has the right to redeem these securities.
As previously disclosed, during the third quarter of 2012, Citi redeemed three series of its trust preferred securities resulting in a pretax gain of $198 million. The redemptions under Citigroup Capital XII and XXI closed on July 18, 2012, while Citigroup Capital XIX closed on August 15, 2012. During the fourth quarter of 2012, Citigroup completed the early redemption of Citigroup Capital XX in the amount of $0.4 billion. The gain recorded upon the redemption was $7 million. The redemption under Citigroup Capital XX closed on December 17, 2012.
The following table summarizes the financial structure of each of the Company’s subsidiary trusts at December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Junior subordinated debentures owned by trust |
| Trust securities |
|
|
|
|
|
|
|
|
|
|
|
Common |
|
|
|
|
|
|
|
| with distributions |
|
|
|
|
|
|
|
|
|
|
|
shares |
|
|
|
|
|
|
Redeemable |
| guaranteed by |
|
Issuance |
|
Securities |
|
Liquidation |
|
|
Coupon |
|
issued |
|
|
|
|
|
|
by issuer |
| Citigroup |
|
date |
|
issued |
|
value |
(1) |
|
rate |
|
to parent |
|
Amount |
|
Maturity |
|
beginning |
| In millions of dollars, except share amounts |
| Citigroup Capital III |
|
Dec. 1996 |
|
194,053 |
|
$ |
194 |
|
|
7.625% |
|
6,003 |
|
$ |
200 |
|
Dec. 1, 2036 |
|
Not redeemable |
| Citigroup Capital VII |
|
July 2001 |
|
35,885,898 |
|
|
897 |
|
|
7.125% |
|
1,109,874 |
|
|
925 |
|
July 31, 2031 |
|
July 31, 2006 |
| Citigroup Capital VIII |
|
Sept. 2001 |
|
43,651,597 |
|
|
1,091 |
|
|
6.950% |
|
1,350,050 |
|
|
1,125 |
|
Sept. 15, 2031 |
|
Sept. 17, 2006 |
| Citigroup Capital IX |
|
Feb. 2003 |
|
33,874,813 |
|
|
847 |
|
|
6.000% |
|
1,047,675 |
|
|
873 |
|
Feb. 14, 2033 |
|
Feb. 13, 2008 |
| Citigroup Capital X |
|
Sept. 2003 |
|
14,757,823 |
|
|
369 |
|
|
6.100% |
|
456,428 |
|
|
380 |
|
Sept. 30, 2033 |
|
Sept. 30, 2008 |
| Citigroup Capital XI |
|
Sept. 2004 |
|
18,387,128 |
|
|
460 |
|
|
6.000% |
|
568,675 |
|
|
474 |
|
Sept. 27, 2034 |
|
Sept. 27, 2009 |
| Citigroup Capital XIII |
|
Sept. 2010 |
|
89,840,000 |
|
|
2,246 |
|
|
7.875% |
|
1,000 |
|
|
2,246 |
|
Oct. 30, 2040 |
|
Oct. 30, 2015 |
| Citigroup Capital XIV |
|
June 2006 |
|
12,227,281 |
|
|
306 |
|
|
6.875% |
|
40,000 |
|
|
307 |
|
June 30, 2066 |
|
June 30, 2011 |
| Citigroup Capital XV |
|
Sept. 2006 |
|
25,210,733 |
|
|
630 |
|
|
6.500% |
|
40,000 |
|
|
631 |
|
Sept. 15, 2066 |
|
Sept. 15, 2011 |
| Citigroup Capital XVI |
|
Nov. 2006 |
|
38,148,947 |
|
|
954 |
|
|
6.450% |
|
20,000 |
|
|
954 |
|
Dec. 31, 2066 |
|
Dec. 31, 2011 |
| Citigroup Capital XVII |
|
Mar. 2007 |
|
28,047,927 |
|
|
701 |
|
|
6.350% |
|
20,000 |
|
|
702 |
|
Mar. 15, 2067 |
|
Mar. 15, 2012 |
| Citigroup Capital XVIII |
|
June 2007 |
|
99,901 |
|
|
162 |
|
|
6.829% |
|
50 |
|
|
162 |
|
June 28, 2067 |
|
June 28, 2017 |
| Citigroup Capital XXXIII (2) |
|
July 2009 |
|
3,025,000 |
|
|
3,025 |
|
|
8.000% |
|
100 |
|
|
3,025 |
|
July 30, 2039 |
|
July 30, 2014 |
|
|
|
|
|
|
|
|
|
|
3 mo. LIB |
|
|
|
|
|
|
|
|
|
| Adam Capital Trust III |
|
Dec. 2002 |
|
17,500 |
|
|
18 |
|
|
+335 bp. |
|
542 |
|
|
18 |
|
Jan. 7, 2033 |
|
Jan. 7, 2008 |
|
|
|
|
|
|
|
|
|
|
3 mo. LIB |
|
|
|
|
|
|
|
|
|
| Adam Statutory Trust III |
|
Dec. 2002 |
|
25,000 |
|
|
25 |
|
|
+325 bp. |
|
774 |
|
|
26 |
|
Dec. 26, 2032 |
|
Dec. 26, 2007 |
|
|
|
|
|
|
|
|
|
|
3 mo. LIB |
|
|
|
|
|
|
|
|
|
| Adam Statutory Trust IV |
|
Sept. 2003 |
|
40,000 |
|
|
40 |
|
|
+295 bp. |
|
1,238 |
|
|
41 |
|
Sept. 17, 2033 |
|
Sept. 17, 2008 |
|
|
|
|
|
|
|
|
|
|
3 mo. LIB |
|
|
|
|
|
|
|
|
|
| Adam Statutory Trust V |
|
Mar. 2004 |
|
35,000 |
|
|
35 |
|
|
+279 bp. |
|
1,083 |
|
|
36 |
|
Mar. 17, 2034 |
|
Mar. 17, 2009 |
| Total obligated |
|
|
|
|
|
$ |
12,000 |
|
|
|
|
|
|
$ |
12,125 |
|
|
|
|
| (1) |
|
Represents the notional value received by investors from the trusts at the time of issuance. |
| (2) |
|
On February 4, 2013, approximately $800 million of the $3,025 million issued under Citigroup Capital XXXIII was exchanged into subordinated debt, leaving approximately $2,225 million of trust preferred securities outstanding as of such date. |
In each case, the coupon rate on the debentures is the same as that on the trust securities. Distributions on the trust securities and interest on the debentures are payable quarterly, except for Citigroup Capital III and Citigroup Capital XVIII on which distributions are payable semiannually.
|