Citibank 2008 Annual Report Download - page 175

20. DEBT
SHORT-TERM BORROWINGS
Short-term borrowings consist of commercial paper and other borrowings
with weighted average interest rates as follows:
2008 2007
In millions of dollars
at year end Balance
Weighted
average Balance
Weighted
average
Commercial paper
Citigroup Funding Inc. $ 28,654 1.66% $ 34,939 5.05%
Other Citigroup subsidiaries 471 2.02 2,404 3.15
$ 29,125 $ 37,343
Other borrowings $ 97,566 2.40% $109,145 3.62%
Total $126,691 $146,488
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 nonbank subsidiaries have credit facilities with
Citigroup’s subsidiary depository institutions, including Citibank, N.A.
Borrowings under these facilities must be secured in accordance with
Section 23A of the Federal Reserve Act.
CGMHI has committed financing with unaffiliated banks. At
December 31, 2008, CGMHI had drawn down the full $1.050 billion available
under these facilities, of which $600 million is guaranteed by Citigroup.
CGMHI has bilateral facilities totaling $500 million with unaffiliated banks
with maturities occurring on various dates in the second half of 2009. They
also have substantial 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
In millions of dollars at year end
Weighted
average
coupon Maturities 2008 2007
Citigroup parent company
Senior notes (1) 4.33% 2009-2098 $138,005 $119,680
Subordinated notes 5.37 2009-2036 30,216 28,185
Junior subordinated notes
relating to trust preferred
securities 6.94 2027-2067 24,060 23,756
Other Citigroup subsidiaries
Senior notes (2) 2.69 2009-2045 105,629 180,689
Subordinated notes 3.38 2009-2022 3,395 6,551
Secured debt 2.92 2009-2017 290 433
Citigroup Global Markets
Holdings Inc. (3)
Senior notes 3.72 2009-2097 20,619 26,545
Subordinated notes 3.56 2010 4 4,856
Citigroup Funding Inc. (4)(5)
Senior notes 3.09 2009-2051 37,375 36,417
Total $359,593 $427,112
Senior notes $301,628 $363,331
Subordinated notes 33,615 39,592
Junior subordinated notes
relating to trust preferred
securities 24,060 23,756
Other 290 433
Total $359,593 $427,112
(1) Includes $250 million of notes maturing in 2098.
(2) At December 31, 2008 and 2007, collateralized advances from the Federal Home Loan Bank are
$67.4 billion and $86.9 billion, respectively.
(3) Includes Targeted Growth Enhanced Term Securities (TARGETS) with no carrying value at
December 31, 2008 and $48 million issued by TARGETS Trust XXIV at December 31, 2007 ( the
“CGMHI Trusts”). CGMHI owned all of the voting securities of the CGMHI Trusts. The CGMHI Trusts
had no assets, operations, revenues or cash flows other than those related to the issuance,
administration and repayment of the TARGETS and the CGMHI Trusts’ common securities. The CGMHI
Trusts’ obligations under the TARGETS were fully and unconditionally guaranteed by CGMHI, and
CGMHI’s guarantee obligations were fully and unconditionally guaranteed by Citigroup.
(4) Includes Targeted Growth Enhanced Term Securities (CFI TARGETS) with no carrying value at
December 31, 2008 and $55 million issued by TARGETS Trusts XXV and XXVI at December 31, 2007
(collectively, the “CFI Trusts”). CFI owned all of the voting securities of the CFI Trusts. The CFI Trusts
had no assets, operations, revenues or cash flows other than those related to the issuance,
administration and repayment of the CFI TARGETS and the CFI Trusts’ common securities. The CFI
Trusts’ obligations under the CFI TARGETS were fully and unconditionally guaranteed by CFI, and CFI’s
guarantee obligations were fully and unconditionally guaranteed by Citigroup.
(5) Includes Principal-Protected Trust Securities (Safety First Trust Securities) with carrying values of $452
million issued by Safety First Trust Series 2006-1, 2007-1, 2007-2, 2007-3, 2007-4, 2008-1,
2008-2, 2008-3, 2008-4, 2008-5, and 2008-6 (collectively, the “Safety First Trusts”) at
December 31, 2008 and $301 million issued by Safety First Trust Series 2006-1, 2007-1, 2007-2,
2007-3 and 2007- 4 at December 31, 2007. CFI 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. The Safety First Trusts’ obligations under the Safety First Trust
Securities are fully and unconditionally guaranteed by CFI, and CFI’s guarantee obligations are fully
and unconditionally guaranteed by Citigroup.
CGMHI has a syndicated five-year committed uncollateralized revolving
line of credit facility with unaffiliated banks totaling $3.0 billion, which
matures in 2011. CGMHI also has committed long-term financing facilities
with unaffiliated banks. At December 31, 2008, CGMHI had drawn down the
full $1.025 billion available under these facilities, of which $475 million is
guaranteed by Citigroup. A bank can terminate these facilities by giving
CGMHI prior notice (generally one year). CGMHI also has a $75 million
bilateral facility which matures in 2010.
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