Citizens sets up calls with bond investors: sources

By Davide Scigliuzzo

NEW YORK, Nov 23 (IFR) - Citizens Financial Group has mandated Credit Suisse (LSE: 0QP5.L - news) and Morgan Stanley (Xetra: 885836 - news) to organize calls with fixed income investors ahead of a potential bond sale, sources told IFR on Monday.

One of the sources said a potential bond offering from Citizens (NYSE: CIA - news) is expected to include a three-year senior note and a 10-year subordinated issue, each sized at around US$750m.

While the announcement sent to potential buyers does not specifically mention a bond issue, market participants say a new offering could materialize as soon as this week.

Separately, Citizens announced on Monday it would finance the repurchase of US$750m of subordinated notes held by former stakeholder The Royal Bank of Scotland (NYSE: RBS - news) through the sale of new subordinated debt.

The investor calls - which will be hosted by Citizens' Chief Financial Officer Eric Aboaf as well as the company's treasurer and head of investor relations - are scheduled to take place on Monday and Tuesday.

The bank, however, might have a limited window to access the market before Thanksgiving, with activity in the bond markets expected to grind to a near halt on Wednesday.

Other banks are expected to join Credit Suisse and Morgan Stanley as the bookrunners on a potential new issue.

Citizens did not respond to a request for comment. (Reporting by Davide Scigliuzzo; Editing by Natalie Harrison)