Citibank 2012 Annual Report Download - page 239

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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
In millions of dollars Balance
Weighted
average Balance
Weighted
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,
In millions of dollars
Weighted
average
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.