Citigroup, Inc (NYSE: C) submitted the winning bid for $470 million worth of New York municipal bonds backed by annual appropriations, according to a report from Bloomberg News.
The winning bid made by the New York-based bank of a 1.42% fee beat those made by seven other banks. Barclays Capital had bid at 1.47% and Goldman Sachs Group Inc. (NYSE: GS) had bid at 1.71%. The bonds were issued by the New York State Urban Development Corp, which does business as Empire State Development Corp.
The fixed-rate municipal bonds will pay off debt sold in 2002 to finance state prisons and youth facilities. The holders of the 2002 bonds will be required to redeem them at face value in 201.
The bonds have an average maturity of 3.3 years, ranging between 2012 and 2017. The bonds were rated AA- by S&P and Fitch.
Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.
Shares of Citigroup, Inc (NYSE: C) traded up 0.32% during mid-day trading onTuesday.
