A new "Citibank" mistake of one billion dollars

The US Citigroup Group made a new mistake regarding bonds worth nearly one billion dollars.

According to Arabiya Net, the group sent a notice to investors informing them that their bonds that were expected to mature after 5 years from now will mature in 2043.

and the prospectus for the subordinated bonds, which have a yield of about 6.675%, which were issued in 2013, showed that the maturity date of the bonds will take place on September 13, 2025. It has been mentioned in the prospectus at least 3 times, according to Bloomberg.

and the prospectus is a legal bond between the issuer of the debt and the investor and has often caused legal disputes due to the ambiguity of the interpretation of some of the sentences mentioned in the prospectus, the most recent of which happened in the bonds of Banco Bank Santander of Spain last year, who is in a dispute with investors over the deadline to call convertible bonds.

And last month, the bank mistakenly transferred nearly $ 900 million to lenders to the cosmetics company Revlon, for which the banking giant acts as a managing agent and middleman with creditors.

the bank said at the time that what had happened was an operational error and that it had taken actual steps to recover the excess amounts by communicating with lenders whose funds were transferred to their accounts but failed to recover the full amount. At a time when some lenders have already refunded the excess money.

The American banking group was supposed to transfer only as interest payments to lenders on behalf of Revlon, but it transferred an amount nearly 100 times the amount it was supposed to convert.

(Amazon fun knowledge)