It’s the largest deal the New York-based bank has managed since reentering the Texas municipal-bond market after being temporarily sidelined last year over its firearms policy.
The transaction would be a major win for the bank’s public finance business, which has seen its standing in the Lone Star State slide after a GOP law sought to keep companies that “discriminate” against firearms entities from working in Texas. Citi, which limits its business with gun retailers but has repeatedly said it complies with the law, has only underwritten four Texas deals amounting to $216 million since the legislation went into effect in September.
It hasn’t been easy for Citigroup to rebuild its business in the state. It lost two major bankers, Mario Carrasco and Mark Tarpley, to competitors. Even though Citi provided a written verification of its adherence to the law, it has been accused of not being able to comply by industry group National Shooting Sports Foundation. The group also pleaded its case to the Texas Attorney General’s office, which oversees bond deals.