Citibank 2008 Annual Report Download - page 176

CGMHI also has substantial borrowing arrangements 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.
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, 2008,
the Company’s overall weighted average interest rate for long-term debt was
3.83% on a contractual basis and 4.19% 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 2009 2010 2011 2012 2013 Thereafter
Citigroup parent company $13,463 $17,500 $19,864 $21,135 $17,525 $102,794
Other Citigroup subsidiaries 55,853 16,198 18,607 2,718 4,248 11,691
Citigroup Global Markets Holdings Inc. 1,524 2,352 1,487 2,893 392 11,975
Citigroup Funding Inc. 17,632 5,381 2,154 1,253 3,790 7,164
Total $88,472 $41,431 $42,112 $27,999 $25,955 $133,624
Long-term debt at December 31, 2008 and December 31, 2007 includes
$24,060 million and $23,756 million, respectively, of junior subordinated
debt. The Company formed statutory business trusts under the laws of the
state of Delaware. The trusts exist for the exclusive purposes of (i) issuing
Trust Securities representing undivided beneficial interests in the assets of the
Trust; (ii) investing the gross proceeds of the Trust Securities in junior
subordinated deferrable interest debentures (subordinated debentures) of its
parent; and (iii) engaging in only those activities necessary or incidental
thereto. Upon approval from the Federal Reserve, Citigroup has the right to
redeem these securities.
Citigroup has contractually agreed not to redeem or purchase (i) the
6.50% Enhanced Trust Preferred Securities of Citigroup Capital XV before
September 15, 2056, (ii) the 6.45% Enhanced Trust Preferred Securities of
Citigroup Capital XVI before December 31, 2046, (iii) the 6.35% Enhanced
Trust Preferred Securities of Citigroup Capital XVII before March 15, 2057,
(iv) the 6.829% Fixed Rate/Floating Rate Enhanced Trust Preferred
Securities of Citigroup Capital XVIII before June 28, 2047, (v) the 7.250%
Enhanced Trust Preferred Securities of Citigroup Capital XIX before
August 15, 2047, (vi) the 7.875% Enhanced Trust Preferred Securities of
Citigroup Capital XX before December 15, 2067, and (vii) the 8.300% Fixed
Rate/Floating Rate Enhanced Trust Preferred Securities of Citigroup Capital
XXI before December 21, 2067 unless certain conditions, described in
Exhibit 4.03 to Citigroup’s Current Report on Form 8-K filed on
September 18, 2006, in Exhibit 4.02 to Citigroup’s Current Report on
Form 8-K filed on November 28, 2006, in Exhibit 4.02 to Citigroup’s Current
Report on Form 8-K filed on March 8, 2007, in Exhibit 4.02 to Citigroup’s
Current Report on Form 8-K filed on July 2, 2007, in Exhibit 4.02 to
Citigroup’s Current Report on Form 8-K filed on August 17, 2007, in
Exhibit 4.2 to Citigroup’s Current Report on Form 8-K filed on November 27,
2007, and in Exhibit 4.2 to Citigroup’s Current Report on Form 8-K filed on
December 21, 2007, respectively, are met. These agreements are for the
benefit of the holders of Citigroup’s 6.00% Junior Subordinated Deferrable
Interest Debentures due 2034.
Citigroup owns all of the voting securities of these subsidiary trusts. These
subsidiary trusts have no assets, operations, revenues or cash flows other
than those related to the issuance, administration and repayment of the
subsidiary trusts and the subsidiary trusts’ common securities. These
subsidiary trusts’ obligations are fully and unconditionally guaranteed by
Citigroup.
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