Citibank Korea issues KRW 250 billion Subordinated Bonds

뉴스 제공

2009-06-16 12:04

Seoul--(뉴스와이어)--Citibank Korea Inc (CKI) today announces that it will issue KRW 250 billion of 10-year subordinated bonds with a fixed interest rate of 6.20%.

The offer will be launched on 22 June 2009 and will be made available to both corporate and retail clients at all Citibank branches in Korea.

The subordinated bonds will carry a 10-year maturity with a call option for early redemption on the fifth anniversary of the Issue Date. If the notes are not redeemed on the call date, the coupon will step up by 100bps to 7.20%. Even if the early redemption is not allowed till the fifth anniversary, a transfer of ownership will be facilitated, subject to a prior consent from the bank if investors find buyers and they agree conditions.

The minimum subscription amount is KRW20 million and investors may choose from two types of interest payments offered. These are monthly interest payments or three-month compounding interest payments.

Retail investors are also able to enjoy tax-savings if they subscribe to the subordinated bond via tax-efficient products such as tax preferential and livelihood-type products.

‘With the low market interest rate environment, this product offers higher returns for long-term investors seeking a stable monthly income. Citi is delighted to be offering investors an alternative investment product and adding increased product offering in the local investment market,’ said CKI official.

The subordinated bond is expected to increase CKI‘s capital ratio by more than 50 bps. As at the end March 2009, CKI’s total capital ratio was at 13.25% while the Tier 1 capital ratio was 11.0%.

Citibank Korea Inc is rated at A2 by Moody‘s, A by Fitch and A- by Standard&Poors. CKI’s senior bonds are rated Triple-A by three local rating services agencies such as KIS (Korea Investors Services), NICE (National Information & Credit Evaluation) and Korea Ratings.

The new issuance is expected to be rated at AA+.

About Citibank Korea Inc.

Citibank had opened its first branch in Korea in 1967, and was born newly as Citibank Korea Inc. (CKI) through integration with KorAm Bank in 2004. CKI serves customers at 231 branches (as of end of March, 2009) in Korea by providing the first class financial products and services based on the various products and know-how of Citi with global network including more than 100 years of history and 200 million customers in more than 100 countries. CKI delivers new financial world to the customers through development of innovative financial products and services, encompassing from corporate and investment banking to consumer banking, private banking, and wealth management. Furthermore, Citibank Korea Inc., as a responsible corporate citizen, conducts diverse community activities in the areas of financial education, next generation education, woman, diversity, community, and environment consistently in corporation with sound non-profit organizations.

웹사이트: http://www.citibank.co.kr