Citigroup readying $5B bond offering as first such deal in four years, source says

A Citigroup Inc.
C,
-0.22%
unit is raising $5 billion in debt in a bond offering in its first such deal in four years, a person familiar with the bank told MarketWatch. The deal has launched and is expected to settle as early as Wednesday. Bloomberg initially reported that Citibank NA is tapping the investment-grade bond market in three parts, the largest of which is a $2.5 billion five-year, fixed rate offering priced at 118 basis points over Treasurys, the report said. Citibank NA is the operating unit of Citigroup. The deal comes after Wells Fargo & Co.
WFC,
-0.09%,
Morgan Stanley
MS,
-0.66%
and Bank of America Corp.
BAC,
-0.02%
have sold bank-level bonds this year, as financial firms raise cash while clients pull out deposits that surged during the COVID-19 pandemic. Citigroup’s stock was up 0.5% in premarket trades.