(Adds maximum buyback amount in first paragraph.)
Feb. 15 (Bloomberg) -- Egg Banking Plc, a U.K.-based internet bank owned by Citigroup Inc., offered to buy back as much as 275 million pounds ($432 million) of bonds, a way for lenders to boost capital.
Egg announced a tender offer to holders of its 200 million pounds of 6.875 percent subordinated notes due in 2021 and 250 million pounds of 7.5 percent perpetual upper Tier 2 securities, according to a statement. It offered to pay 98 percent of face value.
The tender comes as Egg seeks to reduce debt repayment costs after it sold its mortgage and savings portfolio to Yorkshire Building Society and its Egg credit card product to Barclays Plc last year, it said in the statement.
--Editors: Paul Armstrong
To contact the reporter on this story: Katie Linsell in London at firstname.lastname@example.org
To contact the editor responsible for this story: Paul Armstrong at email@example.com