Buyers of the bonds are being offered a yield of 8.5 per cent in return for their investment, a figure lower than the 8.75 per cent originally marketed.
Plans to sell TruPs were unveiled by Citigroup in December last year after it repaid more than $20 billion in securities to the US Treasury.
The bank, which is 27 per cent owned by the US government, received $45 billion as part of the Troubled Asset Relief Program.
David Hendler, head of US financial services research at CreditSights, told Bloomberg: âItâs a capital structure need.â
Citigroup recorded a loss of $7.6 billion in the fourth quarter following the TARP repayment.
Meanwhile, Citigroup is also planning on doubling the size of its private banking unit in North America.
In an interview with the Dow Jones newswire, Peter Charrington, chief executive at Citi Private Bank in the territory, said the organisation has also seen an increase in the numbers of applications from bankers during the past 18 months.
The institution is hoping to increase the size of its workforce in the area to 260.
By Jim Ottewill