Citigroup to redeem $2.5B of 1.122% notes and test 10% APR cards
Citigroup will redeem $2.5 billion of its 1.122% fixed/floating notes due 2027 on January 28, 2026 at par plus accrued interest. The bank is also exploring offering credit cards capped at a 10% APR to comply with a potential presidential mandate, which could compress its net interest margins.
1. Citigroup Redeems $2.5 Billion of 1.122% Notes Due 2027
Citigroup Inc. announced it will redeem in full $2,500,000,000 of its 1.122% Fixed Rate / Floating Rate Notes due January 25, 2027 (ISIN: US17327CAM55) on January 28, 2026. The redemption price will be at par plus accrued and unpaid interest to, but excluding, the redemption date. This action reduces the company’s outstanding long-term debt and aligns with Citigroup’s strategy to optimize its liability profile by retiring higher-coupon obligations, following similar redemptions of legacy debt in 2025 totaling $3.1 billion.
2. Citigroup Considers 10% Credit Card APR Offerings
According to people familiar with the matter, Citigroup is evaluating the launch of new consumer credit cards with an annual percentage rate capped at 10% for a one-year promotional period, in response to recent political pressure to limit credit costs. The bank’s management has held discussions with industry groups and government representatives to assess the impact on card approval volumes, reward program economics and net interest income. Citigroup CEO Jane Fraser has emphasized the need to balance consumer affordability with underwriting standards, noting that a permanent cap at this level could materially reduce card receivables by an estimated 15% to 20% over 12 months.