Texas AG to halt most of Citigroup’s municipal offerings on gun law row

Jan 18 (Reuters) – Citigroup Inc (C.N) has discriminated in opposition to the firearms sector, the workplace of Texas Attorney General Ken Paxton stated, making a call that “has the effect” of Texas halting Citi’s potential to underwrite most municipal bond offerings within the state.

Republicans have been ramping up strain on the finance trade over environmental, social and governance (ESG) funding practices. Texas enacted a law in 2021 prohibiting authorities contracts with entities that discriminated in opposition to the firearms trade.

“It has been determined that Citigroup has a policy that discriminates against a firearm entity or firearm trade association”, the assistant lawyer normal chief of the general public finance division of Texas AG wrote on Wednesday within the letter seen by Reuters.

“Citi’s designation as an SB-19 discriminator has the effect of halting its ability to underwrite most municipal bond offerings in Texas,” Paxton’s workplace instructed Reuters, referring to the law.

Until additional discover, The Texas AG won’t approve any public safety issued on or after Wednesday through which Citigroup purchases or underwrites the general public safety, she added within the letter.

“Citi does not discriminate against the firearms sector and believe we are in compliance with Texas law”, a Citigroup spokesperson stated in an emailed assertion to Reuters, including that the corporate would stay engaged with the Texas AG workplace to assessment choices.

In 2018, Citigroup put restrictions on new retail enterprise purchasers that promote weapons, requiring that they move background checks. That adopted a highschool capturing in Florida in February of that 12 months through which 17 individuals died.

Bloomberg News first reported the news on Thursday.

Reporting by Lavanya Ahire and Akanksha Khushi in Bengaluru,Additional reporting by Urvi Dugar and Mrinmay Dey; Editing by Bradley Perrett, Bernadette Baum and David Gregorio

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