Citibank 2009 Annual Report Download - page 200

190
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, 2009,
the Company’s overall weighted average interest rate for long-term debt
was 3.51% on a contractual basis and 3.91% 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 2010 2011 2012 2013 2014 Thereafter
Citigroup parent company $18,030 $20,435 $29,706 $17,775 $18,916 $ 92,942
Other Citigroup subsidiaries 18,710 29,316 17,214 5,177 12,202 14,675
Citigroup Global Markets Holdings Inc. 1,315 1,030 1,686 388 522 8,481
Citigroup Funding Inc. 9,107 8,875 20,738 4,792 3,255 8,732
Total $47,162 $59,656 $69,344 $28,132 $34,895 $124,830
Long-term debt at December 31, 2009 and December 31, 2008 includes
$19,345 million and $24,060 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.