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MLI Income Plus (Series 2009-15)

This product is not available for subscription.

CitiFirst Protection

Investment Rationale

MLI Income Plus is designed for Investors seeking exposure to the growth potential of the Australian equity market in addition to a steady stream of fixed Interest Rate Payments. The structure allows Investors to capture the return on the S&P/ASX 200 up to a predetermined cap in the event of a market rise, whilst providing capital protection and fixed Interest Rate Payments in case the market falls.The investment is structured as a DPA.

Indicative Terms

  • Maturity: 29 April 2014 (4.5 Years)
  • Currency: AUD or USD
  • Capital Protection at Maturity
  • Type: Deferred Purchase Agreement
Issuer Citigroup Global Markets Australia Pty Limited
Guarantor Citigroup Inc.
Index S&P/ASX 200 Price Index (Reuters: .AXJO; Bloomberg: AS51 )
Offer Closes 22 October 2009 at 5:00 pm (Sydney time)
Issue Date 29 October 2009
Maturity Date AUD Series: 29 April 2014
USD Series: 29 April 2014
Term of Investment AUD Series: 4.5 Years
USD Series: 4.5 Years
Denomination AUD Series: Australian Dollars
USD Series: United States Dollars
Investment The MLI which is an agreement between the Investor and the Issuer governed by the Terms.
Issue Price AUD Series: AUD1.00 per MLI unit
USD Series: USD1.00 per MLI unit
Investment Amount The actual amount paid by the Investor to the Issuer by the Offer Closes
Minimum Investment Amount AUD Series: AUD10,000 and multiples of AUD1,000 thereafter
USD Series: USD10,000 and multiples of USD1,000 thereafter
Capital Protection The value of each MLI unit on the Maturity Date will be no less than the Issue Price provided no Early Maturity occurs (subject to certain restrictions as described in Section 2)*
Interest Rate AUD Series: 3.00% p.a.
USD Series: 1.00% p.a.
Interest Rate Payments On each Interest Payment Date, an Interest Rate Payment will be payable per MLI unit to a holder of MLI on the Interest Record Date in accordance with the following formulae:

Interest Rate Payment (Years 1-4) = Interest Rate x Issue Price
Interest Rate Payment (Year 4.5) = 50% of Interest Rate x Issue Price
Interest Record Dates AUD Series: 29 October 2010, 31 October 2011, 29 October 2012, 29 October 2013, 29 April 2014
USD Series: 29 October 2010, 31 October 2011, 29 October 2012, 29 October 2013, 29 April 2014
Interest Payment Dates 5 Business Days after each Interest Record Date
Initial Level The Official Closing Level of the Index on the Issue Date
Final Level The Official Closing Level of the Index on the Maturity Date
Index Performance The Index Performance is calculated in accordance with the formula below:

Index Performance = (Final Level – Initial Level) / Initial Level
Cap Level To be determined by the Issuer and notified to the Investor after the Issue Date.

The Cap Level determined by the Issuer will be between 45% and 55% for the AUD Series and between 20% and 30% for the USD Series.

As an indication, if the MLI units had been issued on the date of this PDS, the Cap Level for the AUD Series would have been 50% and the Cap Level for the USD Series would have been 25%.

Please refer to the section "What factors affect the Cap Level?" on page 8 of PDS for further details.
Final Value per MLI The Final Value per MLI for each MLI unit is calculated as follows:

Issue Price x [100% + Max (0%, Min (Cap Level - 50% of Interest Rate, Index Performance – 50% of Interest Rate))]

This means that, the Final Value per MLI cannot be less than the Issue Price and that if the Index Performance exceeds half the Interest Rate, the Final Value per MLI will be the lesser of:
  • the Issue Price multiplied by: 100% plus the Cap Level minus half the Interest Rate; or
  • the Issue Price multiplied by: 100% plus the Index Performance minus half the Interest Rate.
Delivery Asset Ordinary shares in the Commonwealth Bank of Australia (the "Commonwealth Bank") (an ASX listed share, ASX code: CBA)
Fees Distributor Fee – An upfront fee payable by the Issuer of up to 3.00% (including GST) of the Investment Amount.

This fee will be paid by Citi at no additional cost to Investors.

*The Capital Protection only applies to Investments held until the Maturity Date and provided no Early Maturity occurs. Capital Protection safeguards the Investment from market risks but is subject to the credit worthiness of Citigroup Global Markets Australia Pty Limited and the Guarantor. For more details, please refer to Section 2 of the PDS.

Investment Profile

Time Horizon (Years)
1 or Less
1-3
3-4
4-5
5 or more
Open-ended
Risk
Very Low
Low
Moderate
High
Very High
Speculative
Investment Objective
Full Protection
Partial Protection
Conditional Protection
No Protection
Income
Growth
The above table is a quick reference guide to certain parameters of the product relating to maturity, risk and type of investment goals this product will seek to meet. This is not a recommendation of the product, does not constitute investment advice and should not be construed as doing so.

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  • Investor Sale Form

More Information

For further information on structured financial products contact the Citigroup Structured Products Service Centre.

Phone : 1300 30 70 70.
Email : citifirst.au@citi.com
Mail :GPO Box 557 Sydney NSW 2001

Disclaimer
This material is made available by Citigroup Global Markets Australia Pty Limited (“Citigroup Global Markets”) ABN 64 003 114 832 and AFSL 240992, Participant of the ASX Group and a Participant of the Sydney Futures Exchange Limited. The Financial Products referred to in this document are issued by Citigroup Global Markets. Warrants can be traded on ASX and investors can obtain a copy of the relevant Product Disclosure Statement by contacting Citigroup. Investors may also apply for Instalment Warrants under the Product Disclosure Statement. This information does not take into account the investment objectives or financial situation of any particular person. Investors should be aware that there are risks of investing and that prices both rise and fall. Investors should seek their own independent financial advice based on their own circumstances before making a decision. Warrants are not bank deposits or obligations of, or guaranteed by, Citibank, N.A., Citibank Pty Limited or any of its affiliates or subsidiaries and are subject to investment risks, including the possible loss of the principal amount invested.

The terms set forth herein are intended for discussion purposes only and subject to the final expression of the terms of a transaction as set forth in a definitive agreement and/or confirmation. Although the information contained herein is based upon generally available information and has been obtained from sources believed to be reliable, we do not guarantee its accuracy, and such information may be incomplete or condensed. Any prices used herein are historic and may not be available when any order is entered. All opinions and estimates included in this document constitute our judgment as of this date and are subject to change without notice. This material does not purport to identify the nature of the specific market or other risks associated with a particular transaction. Before entering into a derivative transaction, you should ensure that you fully understand the terms of the transaction, relevant risk factors, the nature and extent of your risk of loss and the nature of the contractual relationship into which you are entering. You should also carefully evaluate whether the transaction is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances and whether you have the operational resources in place to monitor the associated risks and contractual obligations over the term of the transaction.

The ultimate decision to proceed with any transaction rests solely with you. We are not acting as your advisor or agent. Therefore prior to entering into the proposed transaction you should determine, without reliance upon us or our affiliates, the economic risks and merits, as well as the legal, tax and accounting characterizations and consequences of the transaction, and independently determine that you are able to assume these risks. In this regard, by acceptance of these materials, you acknowledge that you have been advised that (a) we are not in the business of providing legal, tax or accounting advice, (b) you understand that there may be legal, tax or accounting risks associated with the transaction, (c) you should receive legal tax and accounting advice from advisors with appropriate expertise to assess relevant risks, and (d) you should apprise senior management in your organization as to the legal, tax and accounting advice (and, if acceptable, risks) associated with this transaction and our disclaimers as to these maters. If you are acting as a financial adviser or agent, you should evaluate these considerations in light of the circumstances applicable to your principal and the scope of your authority. If you believe you need assistance in evaluating and understanding the terms or risks of a particular derivative transaction, you should consult appropriate advisers before entering into the transaction.

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