Citibank 2013 Annual Report Download - page 250

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18. DEBT
Short-Term Borrowings
Short-term borrowings consist of commercial paper and other borrowings
with weighted average interest rates at December 31 as follows:
2013 2012
In millions of dollars Balance
Weighted
average
coupon Balance
Weighted
average
coupon
Commercial paper
Significant Citibank
Entities (1) $17,677 0.25% $11,092 0.36%
Parent (2) 201 1.11 378 0.84
$17,878 $11,470
Other borrowings (3) 41,066 0.87% 40,557 1.06%
Total $58,944 $52,027
(1) Significant Citibank Entities consist of Citibank, N.A. units domiciled in the U.S., Western Europe,
Hong Kong and Singapore.
(2) Parent includes the parent holding company (Citigroup Inc.) and Citi’s broker-dealer subsidiaries that
are consolidated into Citigroup.
(3) At December 31, 2013 and December 31, 2012, collateralized short-term advances from the Federal
Home Loan Banks were $11 billion and $4 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 2013 2012
Citigroup Inc. (1)
Senior debt 4.02% 2014-2098 $124,857 $138,862
Subordinated debt (2) 4.48 2014-2043 28,039 27,581
Trust preferred securities (3) 6.90 2032-2067 3,908 10,110
Bank (4)
Senior debt 1.99 2014-2038 56,039 50,527
Subordinated debt (2) 6.02 2014-2037 418 707
Broker-dealer (5)
Senior debt 3.11 2014-2039 7,831 11,651
Subordinated debt (2) 2.62 2015-2017 24 25
Total (6) $221,116 $239,463
Senior debt $188,727 $201,040
Subordinated debt (2) 28,481 28,313
Trust preferred securities (3) 3,908 10,110
Total $221,116 $239,463
(1) Parent holding company, Citigroup Inc.
(2) Includes notes that are subordinated within certain countries, regions or subsidiaries.
(3) In issuing trust preferred securities, Citi formed statutory business trusts under the laws of the
State of Delaware. The trusts exist for the exclusive purposes of (i) issuing trust preferred securities
representing undivided beneficial interests in the assets of the trust; (ii) investing the gross proceeds
of the trust preferred securities in junior subordinated deferrable interest debentures (subordinated
debentures) of its parent; and (iii) engaging in only those activities necessary or incidental thereto.
Generally, upon receipt of certain regulatory approvals, Citigroup has the right to redeem these
securities upon the date specified in the respective security. The respective common securities issued
by each trust and held by Citigroup are redeemed concurrently with the redemption of the applicable
trust preferred securities.
(4) Represents the Significant Citibank Entities as well as other Citibank and Banamex entities. At
December 31, 2013 and December 31, 2012, collateralized long-term advances from the Federal
Home Loan Banks were $14.0 billion and $16.3 billion, respectively.
(5) Represents broker-dealer subsidiaries that are consolidated into Citigroup Inc., the parent
holding company.
(6) Includes senior notes with carrying values of $87 million issued to outstanding Safety First Trusts at
December 31, 2013 and $186 million issued to these trusts at December 31, 2012. 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.
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,
2013, the Company’s overall weighted average interest rate for long-term
debt was 3.58% on a contractual basis and 2.73% including the effects of
derivative contracts.