Citi (C) Executes $2.5B Debt Offering, Largest Since 2009
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Citigroup (NYSE: C) is still able to borrow money, according to results from a recent bond offering.
Late Tuesday, Citigroup reported it was able to raise $2.5 billion in the capital markets, though the cash came at a premium. Data showed Citi paid about 360 basis points above U.S. Treasuries on 5-year bonds, a move made to whet investors appetites.
Overall demand for the bonds reached $6.5 billion, with the spread tightening to 348 basis points, the Financial Times reported.
The new bonds were sold with a "new issuance concession," meaning yield on the notes was about 30 basis points more than Citi's existing 5-year debt.
Yield on the bonds was about 4.48 percent.
Notably, this was the largest debt offering performed by Citi since October 2009, when the firm sold $2.5 billion.
According to the Barclays Capital index, spreads on investment-grade financial bonds were 337 basis points as of last Friday, compared with just 184 basis points for non-financial corporate debt.
Shares of Citi are 0.7 percent lower ahead of the bell Wednesday.
Late Tuesday, Citigroup reported it was able to raise $2.5 billion in the capital markets, though the cash came at a premium. Data showed Citi paid about 360 basis points above U.S. Treasuries on 5-year bonds, a move made to whet investors appetites.
Overall demand for the bonds reached $6.5 billion, with the spread tightening to 348 basis points, the Financial Times reported.
The new bonds were sold with a "new issuance concession," meaning yield on the notes was about 30 basis points more than Citi's existing 5-year debt.
Yield on the bonds was about 4.48 percent.
Notably, this was the largest debt offering performed by Citi since October 2009, when the firm sold $2.5 billion.
According to the Barclays Capital index, spreads on investment-grade financial bonds were 337 basis points as of last Friday, compared with just 184 basis points for non-financial corporate debt.
Shares of Citi are 0.7 percent lower ahead of the bell Wednesday.
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