Citigroup Inc. has announced the full redemption of its 1.122% fixed-to-floating rate notes due 2027, representing $2.5 billion in aggregate principal. The redemption date is set for January 28, 2026, with the cash redemption price equal to par plus accrued and unpaid interest up to, but excluding, that date. This move follows Citigroup’s strategy to optimize its debt maturity profile and reduce funding costs, as the floating-rate reset on these securities was tied to three-month SOFR plus 0.90%. The redemption will be funded through existing liquidity sources and is expected to lower the company’s overall average interest expense by an estimated 5 basis points on a pro forma basis.

According to people familiar with the matter, Citigroup is exploring the launch of credit cards with a 10% annual percentage rate for a one-year introductory period. This initiative would respond to recent calls for rate caps by the White House, which argued that many consumers are paying APRs in excess of 20%. Citigroup executives have discussed the proposal with policymakers and are assessing its impact on card approval rates, rewards programs and risk management. Industry estimates suggest that a 10% cap could reduce net interest income on the credit card portfolio by roughly $800 million to $1 billion over 12 months, though the bank believes stronger customer retention and increased new-account growth could partially offset the revenue impact.