About the company
Citigroup Capital XIII, functioning as a statutory trust, plays a significant role in the financial world by offering preferred securities. These securities are issued in connection with the issuance of junior subordinated debt securities. The trust operates under the guidance and regulations of indenture, junior subordinated debt indentures, or junior subordinated debt indentures. The primary purpose of Citigroup Capital XIII is to provide a mechanism for financing and capital management for Citigroup Inc., one of the largest multinational investment banking and financial services corporations. By issuing preferred securities, the trust facilitates the acquisition of capital required for various business activities within the Citigroup conglomerate. Preferred securities are a type of investment that combines features of both debt and equity. They have characteristics of equity shares in terms of ownership and potential for capital appreciation; however, they also carry a regular fixed-income element like that of debt instruments. Investors who purchase preferred securities receive fixed dividend payments, typically on a quarterly basis, which are prioritized over common equity shareholders' dividend payments. Citigroup Capital XIII issues these preferred securities as a complement to the senior and subordinated debt securities issued by Citigroup Inc. and its subsidiaries. The proceeds generated from the sale of these securities allow Citigroup Inc. to finance corporate initiatives, including mergers and acquisitions, debt refinancing, and general working capital requirements. This issuance of preferred securities enhances Citigroup's financial flexibility by providing an alternative source of capital beyond traditional bank loans or equity offerings. Furthermore, the trust serves as a conduit for the issuance of junior subordinated debt securities. Junior subordinated debt refers to a type of debt that stands lower in the capital structure hierarchy than senior debt but higher than common equity. Issuing these junior subordinated debt securities allows Citigroup Inc. to achieve several financial goals. Firstly, issuing junior subordinated debt allows Citigroup to diversify its liabilities by accessing different sources of borrowing. It broadens the company's capital structure by adding a layer of debt that bears specific characteristics, such as subordination and fixed maturity, which attract investors seeking these features. Secondly, by issuing junior subordinated debt, Citigroup can take advantage of tax benefits. Interest payments made on these securities are typically tax-deductible, reducing the overall tax liability of the corporation. This provides a cost advantage compared to other forms of financing, such as equity, which does not offer similar tax benefits. Lastly, issuing junior subordinated debt gives Citigroup greater flexibility in managing its regulatory capital requirements. Regulatory capital refers to the minimum capital amount that financial institutions must maintain to ensure financial stability and meet regulatory guidelines. By issuing junior subordinated debt securities, Citigroup can enhance its regulatory capital position without diluting existing ownership stakes or taking on excessive risk. Overall, Citigroup Capital XIII operates as a statutory trust that plays a crucial role in the issuance of preferred securities and junior subordinated debt securities for Citigroup Inc. This trust enables Citigroup to raise capital, diversify its liabilities, benefit from tax advantages, and maintain regulatory compliance. By fulfilling these functions, Citigroup Capital XIII further strengthens the financial position and capabilities of Citigroup Inc. in the global financial markets.
Data updated: June 2, 2026
