| Issuer | Citigroup Global Markets Australia Pty Limited |
|---|---|
| Guarantor | Citigroup Inc. |
| Description | Citi Self Funding Instalments are financial products that enable investors to leverage their exposure to ASX listed Securities. By purchasing a Citi Self Funding Instalment, an investor pays a portion of the upfront cost of the Underlying Share and borrows the balance from Citi. Investors will not receive cash amounts in respect of dividends (including ordinary and special dividends). Those cash amounts will be applied to reduce the Final Instalment. Investors have the right to pay the Final Instalment at any time up to the Maturity Date and receive the Underlying Shares. Investors also have the right to deliver a Request for Purchase Notice and sell the Underlying Shares to Citi, but only on the Maturity Date. |
| Gearing | 40% to 60% of the Underlying Share price (as at the date of this PDS) |
| Investment Term | Approximately 5 years |
| Minimum Investment Amount | $2,000 |
| ASX Listing | Citi Self Funding Instalments will be listed and traded on ASX |
| Expected Listing Date | 29 January 2010 |
| ASX Code (as set out in the Summary Table) |
SOD series XXXSOD (e.g. ANZSOD) |
| Expected trading on normal basis | 12 February 2010 |
| Deferred Settlement Date | 17 February 2010 *Subject to the Instalment Warrants trading on a normal basis on 12 February 2010 |
| Offer Opens | 29 January 2010 |
| Interest Dates | 29 January 2010 25 June 2010 24 June 2011 28 June 2012 27 June 2013 26 June 2014 |
| Maturity Date | 26 June 2015 |
| Instalment Payments | First Instalment – This amount is variable and is paid at the time of application or purchase on ASX. The amount of the First Instalment will be dependant, at the date of purchase, on the price of the Underlying Shares, volatility of the Underlying Shares, time to maturity and prevailing interest rates. Final Instalment – This amount is fixed at the time the Citi Self Funding Instalment is issued or acquired but it will vary over the life of the product as described below. It is equal to the amount of the Loan granted by Citi to acquire the Underlying Shares (and includes Interest Amounts and the Borrowing Fee). The amount is increased annually by the annual Interest Amount and is reduced by the net amount of Dividends and Special Dividends applied to it (subject to any deduction for tax and closely held trust obligations). |
| Application Type | Cash Application – apply for Citi Self Funding Instalments by completing a Cash Application Form and submitting it with payment by cheque or Bpay. Shareholder Application – convert an existing holding of Securities into Citi Self Funding Instalments by completing the Shareholder Application Form and submitting it with a copy of the holding statement for the existing Securities (other than self-managed superannuation funds). Rollover Application – roll your prior series of expiring instalment warrants into a new Series of Citi Self Funding Instalments by completing the Rollover Application Form and submitting it with a copy of the holding statement for the Rollover Instalments. |
| Maturity Options |
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| Commissions and Fees | Upfront Fee – Citi may pay a placement fee of up to 2.00% (including GST) of the Final Instalment on primary market applications. The amount of this fee is dependent on your arrangement with your financial adviser. Trailing Fee – Citi may also pay advisers a trailing fee of up to 1.00% per annum (including GST) of the Final Instalment, payable quarterly in arrears. |
This material is made available by Citigroup Global Markets Australia Pty Limited (“Citi”) 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 Citi. Warrants can be traded on ASX and investors can obtain a copy of the relevant Product Disclosure Statement by contacting Citi. 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.
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