Citigroup Targets More Than $3 Billion Banamex IPO, Taps Banks - Bloomberg News

Citigroup (NYSE:C) plans a $3B+ IPO for Banamex in January, with Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), and JPMorgan (NYSE:JPM) involved. Citigroup aims to reduce its stake below 50% before the listing. Banamex appointed a new CEO earlier this year. The IPO is part of Citigroup's strategy to exit international consumer banking. Citigroup sold 49% of Banamex to investors in 2023.

Citigroup (C) plans a $3B IPO for Banamex in January 2027, aiming to expand in Mexico. The IPO will be led by Citigroup with support from Bank of America, Goldman Sachs, and JPMorgan. Citigroup's stock is currently overvalued by 46.4% relative to its GF Value™ of $91.75, but it offers a 1.91% dividend yield with a 25% payout ratio and a 3-year dividend growth rate of 4.4%.

Citigroup revised its forecast, now expecting the Federal Reserve's first interest rate cut in June 2027, delayed from earlier projections. This follows a stronger-than-expected US jobs report, with 162,000 jobs added in August, surpassing economist forecasts. The Fed raised rates in September 2026, with 16 of 18 officials anticipating further hikes. Bitcoin initially dropped below $80,000 but later recovered above $86,000, supported by ETF inflows and short covering.

Citigroup announced a EUR1.5 billion redemption of its 0.500% Fixed Rate/Floating Rate Notes due 2027, aligning with its liability management strategy. The move aims to improve funding and capital structure efficiency, considering economic value, regulatory changes, and market conditions. Interest on the notes will stop accruing from the redemption date.

Citigroup will start meetings with loan investors for Paramount Skydance Corp. to fund its takeover of Warner Bros. Discovery. The $110 billion deal includes $30 billion in investment-grade bonds, $7.5 billion in loans, and $12 billion in second-lien bonds. The takeover was delayed by lawsuits but is now cleared to close. Citigroup, Bank of America, and Apollo Global Management underwrote the debt package.

A7, a Kremlin-backed fintech company, moved $6.9bn through global banks like Standard Chartered, Citigroup, and others via a forgery scheme. The company used front entities and forged documents to bypass sanctions and facilitate payments, including for war-related goods. A7's operations involved multiple banks and countries, with significant flows routed through Hong Kong and the UAE.