Citi to Redeem $1.5B Series T Preferred Stock Aug 15

In Short

• Citi will redeem all $1.5 billion of its Series T preferred stock.
• The redemption date is August 15, 2026, with cash paid on August 17.
• Citi says the move is part of ongoing funding and capital structure optimisation.

What Happened

Citi said it will redeem, in full, its Series T preferred stock, a $1.5 billion security that pays investors a set dividend rate that can later switch to a floating rate.

The redemption covers 1,500,000 depositary shares, which are tradeable certificates that represent a small fraction of the underlying preferred stock. Citi set the redemption date for August 15, 2026.

Holders will receive $1,000 in cash for each depositary share. Citi said the payment will be made on August 17, 2026, which is the next business day after the redemption date.

Investors on the company’s record date will also receive the regular quarterly dividend for the period. After August 15, dividends will stop accruing, and the depositary shares will no longer be outstanding after payment.

Why It Matters

Preferred stock sits between bonds and common shares, and it is often used by banks as long-term funding. Redeeming it can lower future dividend costs if the bank can replace that funding more cheaply, or if regulators change how the instrument is treated in capital calculations.

Citi said its redemption decisions consider economic value, regulatory changes, net interest margin impact, borrowing costs, remaining maturity across its debt portfolio, and market conditions. For investors and analysts watching global banks with African operations and clients, these moves are a useful signal of how large institutions are managing funding costs in a higher-rate and tighter-capital environment.

The step also matters for treasury teams at African fintechs and banks that rely on international liquidity, because shifts in global bank funding can influence pricing for wholesale credit lines, trade finance, and cross-border settlement services over time.