[424B2] Citigroup Inc. Prospectus Supplement
Citigroup Global Markets Holdings Inc., guaranteed by Citigroup Inc., intends to issue Autocallable Securities linked to the S&P 500 Index under a 424(b)(2) prospectus supplement. Each unlisted, unsecured $1,000 note is priced on 26 June 2025, issued 1 July 2025 and matures 1 July 2030, unless called earlier.
The notes may be automatically redeemed on any of 17 scheduled valuation dates if the index closes at or above the 90 % autocall barrier. Early redemption pays $1,000 plus a fixed premium that steps from 8 % after year 1 to 40 % by the final observation (26 June 2030). If not called, the maturity payout is:
- $1,000 + 40 % premium if the index is ≥90 % of the initial level
- Return of principal only if the index is ≥85 % but <90 %
- A buffered downside formula if the index is <85 % (15 % buffer, thereafter losses exceed index decline)
The estimated value on the pricing date will be at least $942.50, below the issue price, reflecting CGMI’s pricing models and funding rate. Notes pay no interest or dividends, provide no upside beyond stated premiums, carry full credit risk of the issuer/guarantor, and will not be exchange-listed.
Citigroup Global Markets Holdings Inc., garantita da Citigroup Inc., intende emettere titoli autocallable collegati all'indice S&P 500 secondo un supplemento al prospetto 424(b)(2). Ogni nota non quotata e non garantita da $1.000 è prezzata il 26 giugno 2025, emessa il 1° luglio 2025 e scade il 1° luglio 2030, salvo richiamo anticipato.
Le note possono essere rimborsate automaticamente in una delle 17 date di valutazione programmate se l'indice chiude al livello o sopra la barriera autocall del 90%. Il rimborso anticipato prevede $1.000 più un premio fisso che aumenta dal 8% dopo il primo anno fino al 40% all'ultima osservazione (26 giugno 2030). Se non richiamate, il pagamento a scadenza sarà:
- $1.000 + premio del 40% se l'indice è ≥90% del livello iniziale
- Rimborso del capitale se l'indice è ≥85% ma <90%
- Formula di protezione parziale dalle perdite se l'indice è <85% (buffer del 15%, oltre il quale le perdite seguono il calo dell'indice)
Il valore stimato alla data di prezzo sarà almeno di $942,50, inferiore al prezzo di emissione, in base ai modelli di prezzo e al tasso di finanziamento di CGMI. Le note non pagano interessi né dividendi, non offrono guadagni oltre i premi indicati, comportano il pieno rischio di credito dell'emittente/garante e non saranno quotate in borsa.
Citigroup Global Markets Holdings Inc., garantizada por Citigroup Inc., tiene la intención de emitir Valores Autollamables vinculados al índice S&P 500 bajo un suplemento al prospecto 424(b)(2). Cada nota no listada y no garantizada de $1,000 se valorará el 26 de junio de 2025, se emitirá el 1 de julio de 2025 y vencerá el 1 de julio de 2030, salvo que se llame antes.
Las notas pueden ser redimidas automáticamente en cualquiera de las 17 fechas de valoración programadas si el índice cierra en o por encima de la barrera de autollamada del 90%. La redención anticipada paga $1,000 más una prima fija que aumenta desde el 8% después del primer año hasta el 40% en la última observación (26 de junio de 2030). Si no se llaman, el pago al vencimiento será:
- $1,000 + prima del 40% si el índice está ≥90% del nivel inicial
- Devolución del principal solo si el índice está ≥85% pero <90%
- Una fórmula de protección parcial contra pérdidas si el índice está <85% (buffer del 15%, después del cual las pérdidas superan la caída del índice)
El valor estimado en la fecha de precio será al menos $942.50, por debajo del precio de emisión, reflejando los modelos de precio y la tasa de financiamiento de CGMI. Las notas no pagan intereses ni dividendos, no ofrecen ganancias más allá de las primas indicadas, conllevan el riesgo crediticio completo del emisor/garante y no estarán listadas en bolsa.
Citigroup Global Markets Holdings Inc.는 Citigroup Inc.의 보증 하에 S&P 500 지수에 연동된 자동상환증권을 424(b)(2) 보충 설명서에 따라 발행할 예정입니다. 각 비상장, 무담보 $1,000 채권은 2025년 6월 26일에 가격이 책정되고, 2025년 7월 1일에 발행되며, 조기 상환되지 않는 한 2030년 7월 1일에 만기됩니다.
채권은 예정된 17개의 평가일 중 어느 날이라도 지수가 90% 자동상환 장벽 이상으로 마감되면 자동 상환될 수 있습니다. 조기 상환 시 1,000달러에 1년 후 8%에서 최종 관측일(2030년 6월 26일)까지 40%로 점진적으로 증가하는 고정 프리미엄이 지급됩니다. 상환되지 않을 경우 만기 지급은 다음과 같습니다:
- 지수가 초기 수준의 90% 이상일 경우 $1,000 + 40% 프리미엄
- 지수가 85% 이상 90% 미만일 경우 원금만 반환
- 지수가 85% 미만일 경우 15% 버퍼를 적용한 손실 보호 공식 (버퍼 초과 시 지수 하락에 따른 손실 발생)
가격 책정일 기준 예상 가치는 CGMI의 가격 모델과 자금 조달 금리를 반영하여 발행가보다 낮은 최소 $942.50입니다. 채권은 이자나 배당금을 지급하지 않으며, 명시된 프리미엄 이상의 수익을 제공하지 않고, 발행자/보증인의 신용 위험을 전적으로 부담하며, 거래소에 상장되지 않습니다.
Citigroup Global Markets Holdings Inc., garantie par Citigroup Inc., prévoit d’émettre des titres autocallables liés à l’indice S&P 500 dans le cadre d’un supplément au prospectus 424(b)(2). Chaque billet non coté et non garanti de 1 000 $ est coté au 26 juin 2025, émis le 1er juillet 2025 et arrive à échéance le 1er juillet 2030, sauf rappel anticipé.
Les titres peuvent être remboursés automatiquement à l’une des 17 dates d’évaluation prévues si l’indice clôture au-dessus ou à la barrière d’autocall de 90%. Le remboursement anticipé verse 1 000 $ plus une prime fixe qui progresse de 8% après la première année à 40% à la dernière observation (26 juin 2030). En cas de non-rappel, le paiement à l’échéance sera :
- 1 000 $ + prime de 40 % si l’indice est ≥90 % du niveau initial
- Retour du principal uniquement si l’indice est ≥85 % mais <90 %
- Une formule de protection partielle en cas de baisse si l’indice est <85 % (buffer de 15 %, au-delà duquel les pertes suivent la baisse de l’indice)
La valeur estimée à la date de tarification sera au moins de 942,50 $, inférieure au prix d’émission, reflétant les modèles de tarification et le taux de financement de CGMI. Les titres ne versent ni intérêts ni dividendes, n’offrent pas de gains au-delà des primes indiquées, comportent le plein risque de crédit de l’émetteur/garant et ne seront pas cotés en bourse.
Citigroup Global Markets Holdings Inc., garantiert durch Citigroup Inc., beabsichtigt die Ausgabe von autocallbaren Wertpapieren, die an den S&P 500 Index gekoppelt sind, gemäß einem 424(b)(2) Prospektergänzung. Jede nicht börsennotierte, unbesicherte Note im Nennwert von 1.000 USD wird am 26. Juni 2025 bepreist, am 1. Juli 2025 ausgegeben und läuft bis zum 1. Juli 2030, sofern sie nicht vorzeitig zurückgerufen wird.
Die Notes können an einem von 17 geplanten Bewertungsterminen automatisch zurückgezahlt werden, wenn der Index auf oder über der 90% Autocall-Schwelle schließt. Bei vorzeitiger Rückzahlung wird der Nennwert von 1.000 USD plus eine feste Prämie gezahlt, die von 8% nach dem ersten Jahr bis zu 40% bei der letzten Beobachtung (26. Juni 2030) ansteigt. Wird nicht zurückgerufen, erfolgt die Rückzahlung zum Laufzeitende wie folgt:
- 1.000 USD + 40% Prämie, wenn der Index ≥90% des Anfangsniveaus ist
- Nur Rückzahlung des Kapitals, wenn der Index ≥85% aber <90% ist
- Eine gepufferte Verlustformel, wenn der Index <85% ist (15% Puffer, darüber hinaus Verluste entsprechend dem Indexrückgang)
Der geschätzte Wert am Preisstellungstag wird mindestens 942,50 USD betragen, unter dem Ausgabepreis, basierend auf den Bewertungsmodellen und Finanzierungskosten von CGMI. Die Notes zahlen keine Zinsen oder Dividenden, bieten keine Gewinne über die angegebenen Prämien hinaus, tragen das volle Kreditrisiko des Emittenten/Garanten und werden nicht an einer Börse notiert sein.
- None.
- None.
Insights
TL;DR: Routine structured-note issuance; step-up call premiums, 15 % buffer, no material impact on Citigroup’s financials.
This filing outlines a typical retail-oriented autocallable linked to the S&P 500. Features—90 % call trigger, premiums rising to 40 %, 15 % final buffer—are standard for five-year notes in the current rate/vol regime. Credit exposure rests solely on Citigroup; no covenant changes or large proceeds disclosed, so balance-sheet impact is negligible. Investors face valuation drag (issue price vs. $942.50 estimated value) and limited liquidity. From an equity-holder perspective the program adds marginal fee income and funding, but nothing transformative.
TL;DR: Product transfers equity risk to retail buyers; moderate headline risk, neutral corporate impact.
The note moves S&P 500 downside (beyond 15 %) to investors while giving Citigroup cheap unsecured funding at par. Because premiums are capped and early redemption likely in modestly positive markets, expected duration is short, lowering issuer risk. Absence of exchange listing limits secondary liquidity—potential reputational concern but typical for such offerings. No indication of scale, so systemic or capital-ratio implications are minimal. Overall risk profile to the firm is neutral.
Citigroup Global Markets Holdings Inc., garantita da Citigroup Inc., intende emettere titoli autocallable collegati all'indice S&P 500 secondo un supplemento al prospetto 424(b)(2). Ogni nota non quotata e non garantita da $1.000 è prezzata il 26 giugno 2025, emessa il 1° luglio 2025 e scade il 1° luglio 2030, salvo richiamo anticipato.
Le note possono essere rimborsate automaticamente in una delle 17 date di valutazione programmate se l'indice chiude al livello o sopra la barriera autocall del 90%. Il rimborso anticipato prevede $1.000 più un premio fisso che aumenta dal 8% dopo il primo anno fino al 40% all'ultima osservazione (26 giugno 2030). Se non richiamate, il pagamento a scadenza sarà:
- $1.000 + premio del 40% se l'indice è ≥90% del livello iniziale
- Rimborso del capitale se l'indice è ≥85% ma <90%
- Formula di protezione parziale dalle perdite se l'indice è <85% (buffer del 15%, oltre il quale le perdite seguono il calo dell'indice)
Il valore stimato alla data di prezzo sarà almeno di $942,50, inferiore al prezzo di emissione, in base ai modelli di prezzo e al tasso di finanziamento di CGMI. Le note non pagano interessi né dividendi, non offrono guadagni oltre i premi indicati, comportano il pieno rischio di credito dell'emittente/garante e non saranno quotate in borsa.
Citigroup Global Markets Holdings Inc., garantizada por Citigroup Inc., tiene la intención de emitir Valores Autollamables vinculados al índice S&P 500 bajo un suplemento al prospecto 424(b)(2). Cada nota no listada y no garantizada de $1,000 se valorará el 26 de junio de 2025, se emitirá el 1 de julio de 2025 y vencerá el 1 de julio de 2030, salvo que se llame antes.
Las notas pueden ser redimidas automáticamente en cualquiera de las 17 fechas de valoración programadas si el índice cierra en o por encima de la barrera de autollamada del 90%. La redención anticipada paga $1,000 más una prima fija que aumenta desde el 8% después del primer año hasta el 40% en la última observación (26 de junio de 2030). Si no se llaman, el pago al vencimiento será:
- $1,000 + prima del 40% si el índice está ≥90% del nivel inicial
- Devolución del principal solo si el índice está ≥85% pero <90%
- Una fórmula de protección parcial contra pérdidas si el índice está <85% (buffer del 15%, después del cual las pérdidas superan la caída del índice)
El valor estimado en la fecha de precio será al menos $942.50, por debajo del precio de emisión, reflejando los modelos de precio y la tasa de financiamiento de CGMI. Las notas no pagan intereses ni dividendos, no ofrecen ganancias más allá de las primas indicadas, conllevan el riesgo crediticio completo del emisor/garante y no estarán listadas en bolsa.
Citigroup Global Markets Holdings Inc.는 Citigroup Inc.의 보증 하에 S&P 500 지수에 연동된 자동상환증권을 424(b)(2) 보충 설명서에 따라 발행할 예정입니다. 각 비상장, 무담보 $1,000 채권은 2025년 6월 26일에 가격이 책정되고, 2025년 7월 1일에 발행되며, 조기 상환되지 않는 한 2030년 7월 1일에 만기됩니다.
채권은 예정된 17개의 평가일 중 어느 날이라도 지수가 90% 자동상환 장벽 이상으로 마감되면 자동 상환될 수 있습니다. 조기 상환 시 1,000달러에 1년 후 8%에서 최종 관측일(2030년 6월 26일)까지 40%로 점진적으로 증가하는 고정 프리미엄이 지급됩니다. 상환되지 않을 경우 만기 지급은 다음과 같습니다:
- 지수가 초기 수준의 90% 이상일 경우 $1,000 + 40% 프리미엄
- 지수가 85% 이상 90% 미만일 경우 원금만 반환
- 지수가 85% 미만일 경우 15% 버퍼를 적용한 손실 보호 공식 (버퍼 초과 시 지수 하락에 따른 손실 발생)
가격 책정일 기준 예상 가치는 CGMI의 가격 모델과 자금 조달 금리를 반영하여 발행가보다 낮은 최소 $942.50입니다. 채권은 이자나 배당금을 지급하지 않으며, 명시된 프리미엄 이상의 수익을 제공하지 않고, 발행자/보증인의 신용 위험을 전적으로 부담하며, 거래소에 상장되지 않습니다.
Citigroup Global Markets Holdings Inc., garantie par Citigroup Inc., prévoit d’émettre des titres autocallables liés à l’indice S&P 500 dans le cadre d’un supplément au prospectus 424(b)(2). Chaque billet non coté et non garanti de 1 000 $ est coté au 26 juin 2025, émis le 1er juillet 2025 et arrive à échéance le 1er juillet 2030, sauf rappel anticipé.
Les titres peuvent être remboursés automatiquement à l’une des 17 dates d’évaluation prévues si l’indice clôture au-dessus ou à la barrière d’autocall de 90%. Le remboursement anticipé verse 1 000 $ plus une prime fixe qui progresse de 8% après la première année à 40% à la dernière observation (26 juin 2030). En cas de non-rappel, le paiement à l’échéance sera :
- 1 000 $ + prime de 40 % si l’indice est ≥90 % du niveau initial
- Retour du principal uniquement si l’indice est ≥85 % mais <90 %
- Une formule de protection partielle en cas de baisse si l’indice est <85 % (buffer de 15 %, au-delà duquel les pertes suivent la baisse de l’indice)
La valeur estimée à la date de tarification sera au moins de 942,50 $, inférieure au prix d’émission, reflétant les modèles de tarification et le taux de financement de CGMI. Les titres ne versent ni intérêts ni dividendes, n’offrent pas de gains au-delà des primes indiquées, comportent le plein risque de crédit de l’émetteur/garant et ne seront pas cotés en bourse.
Citigroup Global Markets Holdings Inc., garantiert durch Citigroup Inc., beabsichtigt die Ausgabe von autocallbaren Wertpapieren, die an den S&P 500 Index gekoppelt sind, gemäß einem 424(b)(2) Prospektergänzung. Jede nicht börsennotierte, unbesicherte Note im Nennwert von 1.000 USD wird am 26. Juni 2025 bepreist, am 1. Juli 2025 ausgegeben und läuft bis zum 1. Juli 2030, sofern sie nicht vorzeitig zurückgerufen wird.
Die Notes können an einem von 17 geplanten Bewertungsterminen automatisch zurückgezahlt werden, wenn der Index auf oder über der 90% Autocall-Schwelle schließt. Bei vorzeitiger Rückzahlung wird der Nennwert von 1.000 USD plus eine feste Prämie gezahlt, die von 8% nach dem ersten Jahr bis zu 40% bei der letzten Beobachtung (26. Juni 2030) ansteigt. Wird nicht zurückgerufen, erfolgt die Rückzahlung zum Laufzeitende wie folgt:
- 1.000 USD + 40% Prämie, wenn der Index ≥90% des Anfangsniveaus ist
- Nur Rückzahlung des Kapitals, wenn der Index ≥85% aber <90% ist
- Eine gepufferte Verlustformel, wenn der Index <85% ist (15% Puffer, darüber hinaus Verluste entsprechend dem Indexrückgang)
Der geschätzte Wert am Preisstellungstag wird mindestens 942,50 USD betragen, unter dem Ausgabepreis, basierend auf den Bewertungsmodellen und Finanzierungskosten von CGMI. Die Notes zahlen keine Zinsen oder Dividenden, bieten keine Gewinne über die angegebenen Prämien hinaus, tragen das volle Kreditrisiko des Emittenten/Garanten und werden nicht an einer Börse notiert sein.
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The information in this preliminary pricing supplement is not complete and may be changed. A registration statement relating to these securities has been filed with the Securities and Exchange Commission. This preliminary pricing supplement and the accompanying product supplement, underlying supplement, prospectus supplement and prospectus are not an offer to sell these securities, nor are they soliciting an offer to buy these securities, in any state where the offer or sale is not permitted. SUBJECT TO COMPLETION, DATED JUNE 25, 2025 |
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Citigroup Global Markets Holdings Inc. |
June , 2025 Medium-Term Senior Notes, Series N Pricing Supplement No. 2025-USNCH27341 Filed Pursuant to Rule 424(b)(2) Registration Statement Nos. 333-270327 and 333-270327-01 |
Autocallable Securities Linked to the S&P 500® Index Due July 1, 2030
▪The securities offered by this pricing supplement are unsecured debt securities issued by Citigroup Global Markets Holdings Inc. and guaranteed by Citigroup Inc. Unlike conventional debt securities, the securities do not pay interest, do not guarantee the repayment of principal at maturity and are subject to potential automatic early redemption on a periodic basis on the terms described below. Your return on the securities will depend on the performance of the underlying specified below.
▪The securities offer the potential for automatic early redemption at a premium following the first valuation date (other than the final valuation date) on which the closing value of the underlying is greater than or equal to the autocall barrier value. If the securities are not automatically redeemed prior to maturity, the securities will provide for (i) repayment of the stated principal amount plus a premium at maturity if the final underlying value is greater than or equal to the autocall barrier value or (ii) repayment of the stated principal amount at maturity, with no premium, if the final underlying value is less than the autocall barrier value but greater than or equal to the final buffer value specified below. However, if the securities are not automatically redeemed prior to maturity and the underlying on the final valuation date has depreciated from the initial underlying value so that the final underlying value is less than the final buffer value, you will lose more than 1% of the stated principal amount of your securities for every 1% by which that depreciation exceeds the buffer percentage specified below. Accordingly, the lower the final underlying value, the less benefit you will receive from the buffer percentage. Although you will have downside exposure to the underlying, you will not receive dividends with respect to the underlying or participate in any appreciation of the underlying.
▪Investors in the securities must be willing to accept (i) an investment that may have limited or no liquidity and (ii) the risk of not receiving any payments due under the securities if we and Citigroup Inc. default on our obligations. All payments on the securities are subject to the credit risk of Citigroup Global Markets Holdings Inc. and Citigroup Inc.
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KEY TERMS |
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Issuer: |
Citigroup Global Markets Holdings Inc., a wholly owned subsidiary of Citigroup Inc. |
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Guarantee: |
All payments due on the securities are fully and unconditionally guaranteed by Citigroup Inc. |
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Underlying: |
The S&P 500® Index |
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Stated principal amount: |
$1,000 per security |
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Pricing date: |
June 26, 2025 |
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Issue date: |
July 1, 2025 |
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Valuation dates: |
July 2, 2026, September 28, 2026, December 28, 2026, March 29, 2027, June 28, 2027, September 27, 2027, December 27, 2027, March 27, 2028, June 26, 2028, September 26, 2028, December 26, 2028, March 26, 2029, June 26, 2029, September 26, 2029, December 26, 2029, March 26, 2030 and June 26, 2030 (the “final valuation date”), each subject to postponement if such date is not a scheduled trading day or certain market disruption events occur |
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Maturity date: |
Unless earlier redeemed, July 1, 2030 |
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Automatic early redemption: |
If, on any valuation date prior to the final valuation date, the closing value of the underlying is greater than or equal to the autocall barrier value, the securities will be automatically redeemed on the third business day immediately following that valuation date for an amount in cash per security equal to $1,000 plus the premium applicable to that valuation date. If the securities are automatically redeemed following any valuation date prior to the final valuation date, they will cease to be outstanding and you will not receive the premium applicable to any later valuation date. |
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Payment at maturity: |
If the securities are not automatically redeemed prior to maturity, you will receive at maturity for each security you then hold: ■If the final underlying value is greater than or equal to the autocall barrier value: $1,000 + the premium applicable to the final valuation date ■If the final underlying value is less than the autocall barrier value but greater than or equal to the final buffer value: $1,000 ■If the final underlying value is less than the final buffer value: $1,000 + [$1,000 × the buffer rate × (the underlying return + the buffer percentage)] If the securities are not automatically redeemed prior to maturity and the final underlying value is less than the final buffer value, which means that the underlying has depreciated from the initial underlying value by more than the buffer percentage, you will lose more than 1% of the stated principal amount of your securities at maturity for every 1% by which that depreciation exceeds the buffer percentage. Accordingly, the lower the final underlying value, the less benefit you will receive from the buffer. |
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Initial underlying value: |
, the closing value of the underlying on the pricing date |
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Final underlying value: |
The closing value of the underlying on the final valuation date |
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Autocall barrier value: |
, 90.00% of the initial underlying value |
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Final buffer value: |
, 85.00% of the initial underlying value |
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Buffer percentage: |
15.00% |
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Buffer rate: |
The initial underlying value divided by the final buffer value, which is approximately 117.6471% |
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Listing: |
The securities will not be listed on any securities exchange |
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Underwriter: |
Citigroup Global Markets Inc. (“CGMI”), an affiliate of the issuer, acting as principal |
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Underwriting fee and issue price: |
Issue price(1) |
Underwriting fee(2) |
Proceeds to issuer |
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Per security: |
$1,000.00 |
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$1,000.00 |
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Total: |
$ |
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$ |
(Key Terms continued on next page)
(1) Citigroup Global Markets Holdings Inc. currently expects that the estimated value of the securities on the pricing date will be at least $942.50 per security, which will be less than the issue price. The estimated value of the securities is based on CGMI’s proprietary pricing models and our internal funding rate. It is not an indication of actual profit to CGMI or other of our affiliates, nor is it an indication of the price, if any, at which CGMI or any other person may be willing to buy the securities from you at any time after issuance. See “Valuation of the Securities” in this pricing supplement.
(2) For more information on the distribution of the securities, see “Supplemental Plan of Distribution” in this pricing supplement. CGMI and its affiliates may profit from expected hedging activity related to this offering, even if the value of the securities declines. See “Use of Proceeds and Hedging” in the accompanying prospectus.
Investing in the securities involves risks not associated with an investment in conventional debt securities. See “Summary Risk Factors” beginning on page PS-6.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities or determined that this pricing supplement and the accompanying product supplement, underlying supplement, prospectus supplement and prospectus are truthful or complete. Any representation to the contrary is a criminal offense.
You should read this pricing supplement together with the accompanying product supplement, underlying supplement, prospectus supplement and prospectus, which can be accessed via the hyperlinks below:
Product Supplement No. EA-02-10 dated March 7, 2023Underlying Supplement No. 11 dated March 7, 2023
Prospectus Supplement and Prospectus each dated March 7, 2023
The securities are not bank deposits and are not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency, nor are they obligations of, or guaranteed by, a bank.
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Citigroup Global Markets Holdings Inc. |
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KEY TERMS (continued) |
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Premium: |
The premium applicable to each valuation date will be determined on the pricing date and will be at least the percentage indicated below. The premium may be significantly less than the appreciation of the underlying from the pricing date to the applicable valuation date.
•July 2, 2026: 8.00% of the stated principal amount •September 28, 2026: 10.00% of the stated principal amount •December 28, 2026: 12.00% of the stated principal amount •March 29, 2027: 14.00% of the stated principal amount •June 28, 2027: 16.00% of the stated principal amount •September 27, 2027: 18.00% of the stated principal amount •December 27, 2027: 20.00% of the stated principal amount •March 27, 2028: 22.00% of the stated principal amount •June 26, 2028: 24.00% of the stated principal amount •September 26, 2028: 26.00% of the stated principal amount •December 26, 2028: 28.00% of the stated principal amount •March 26, 2029: 30.00% of the stated principal amount •June 26, 2029: 32.00% of the stated principal amount •September 26, 2029: 34.00% of the stated principal amount •December 26, 2029: 36.00% of the stated principal amount •March 26, 2030: 38.00% of the stated principal amount •June 26, 2030: 40.00% of the stated principal amount |
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Underlying return: |
(i) The final underlying value minus the initial underlying value, divided by (ii) the initial underlying value |
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CUSIP / ISIN: |
17333LBX2 / US17333LBX29 |
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Citigroup Global Markets Holdings Inc. |
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Additional Information
The terms of the securities are set forth in the accompanying product supplement, prospectus supplement and prospectus, as supplemented by this pricing supplement. The accompanying product supplement, prospectus supplement and prospectus contain important disclosures that are not repeated in this pricing supplement. For example, the accompanying product supplement contains important information about how the closing value of the underlying will be determined and about adjustments that may be made to the terms of the securities upon the occurrence of market disruption events and other specified events with respect to the underlying. The accompanying underlying supplement contains information about the underlying that is not repeated in this pricing supplement. It is important that you read the accompanying product supplement, underlying supplement, prospectus supplement and prospectus together with this pricing supplement before deciding whether to invest in the securities. Certain terms used but not defined in this pricing supplement are defined in the accompanying product supplement.
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Citigroup Global Markets Holdings Inc. |
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Hypothetical Payment Upon Automatic Early Redemption
The following table illustrates how the amount payable per security upon automatic early redemption will be calculated if the closing value of the underlying on any valuation date prior to the final valuation date is greater than or equal to the autocall barrier value. The table assumes that the premium applicable to each valuation date will be set at the lowest value indicated under “Key Terms” above. The actual premium applicable to each valuation date will be determined on the pricing date.
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If the first valuation date on which the closing value of the underlying is greater than or equal to the autocall barrier value is... |
...then you will receive the following payment per security upon automatic early redemption: |
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July 2, 2026 |
$1,000.00 + applicable premium = $1,000.00 + $80.00 = $1,080.00 |
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September 28, 2026 |
$1,000.00 + applicable premium = $1,000.00 + $100.00 = $1,100.00 |
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December 28, 2026 |
$1,000.00 + applicable premium = $1,000.00 + $120.00 = $1,120.00 |
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March 29, 2027 |
$1,000.00 + applicable premium = $1,000.00 + $140.00 = $1,140.00 |
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June 28, 2027 |
$1,000.00 + applicable premium = $1,000.00 + $160.00 = $1,160.00 |
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September 27, 2027 |
$1,000.00 + applicable premium = $1,000.00 + $180.00 = $1,180.00 |
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December 27, 2027 |
$1,000.00 + applicable premium = $1,000.00 + $200.00 = $1,200.00 |
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March 27, 2028 |
$1,000.00 + applicable premium = $1,000.00 + $220.00 = $1,220.00 |
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June 26, 2028 |
$1,000.00 + applicable premium = $1,000.00 + $240.00 = $1,240.00 |
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September 26, 2028 |
$1,000.00 + applicable premium = $1,000.00 + $260.00 = $1,260.00 |
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December 26, 2028 |
$1,000.00 + applicable premium = $1,000.00 + $280.00 = $1,280.00 |
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March 26, 2029 |
$1,000.00 + applicable premium = $1,000.00 + $300.00 = $1,300.00 |
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June 26, 2029 |
$1,000.00 + applicable premium = $1,000.00 + $320.00 = $1,320.00 |
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September 26, 2029 |
$1,000.00 + applicable premium = $1,000.00 + $340.00 = $1,340.00 |
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December 26, 2029 |
$1,000.00 + applicable premium = $1,000.00 + $360.00 = $1,360.00 |
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March 26, 2030 |
$1,000.00 + applicable premium = $1,000.00 + $380.00 = $1,380.00 |
If, on any valuation date prior to the final valuation date, the closing value of the underlying is less than the autocall barrier value, you will not receive the premium indicated above following that valuation date. In order to receive the premium indicated above, the closing value of the underlying on the applicable valuation date must be greater than or equal to the autocall barrier value.
Payment at Maturity Diagram
The diagram below illustrates your payment at maturity of the securities, assuming the securities have not previously been automatically redeemed, for a range of hypothetical underlying returns. The diagram assumes that the premium applicable to the final valuation date will be set at the lowest value indicated under “Key Terms” above. The actual premium applicable to the final valuation date will be determined on the pricing date.
Investors in the securities will not receive any dividends with respect to the underlying. The diagram and examples below do not show any effect of lost dividend yield over the term of the securities. See “Summary Risk Factors—You will not receive dividends or have any other rights with respect to the underlying” below.
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Payment at Maturity Diagram |
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n The Securities |
n The Underlying |
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Citigroup Global Markets Holdings Inc. |
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Hypothetical Examples of the Payment at Maturity
The examples below are intended to illustrate how, if the securities are not automatically redeemed prior to maturity, your payment at maturity will depend on the final underlying value. Your actual payment at maturity per security, if the securities are not automatically redeemed prior to maturity, will depend on the actual final underlying value. The examples are solely for illustrative purposes, do not show all possible outcomes and are not a prediction of any payment that may be made on the securities.
The examples below are based on the following hypothetical values and do not reflect the actual initial underlying value, final buffer value or autocall barrier value. For the actual initial underlying value, final buffer value and autocall barrier value, see the cover page of this pricing supplement. We have used these hypothetical values, rather than the actual values, to simplify the calculations and aid understanding of how the securities work. However, you should understand that the actual payment at maturity on the securities will be calculated based on the actual initial underlying value, final buffer value and autocall barrier value, and not the hypothetical values indicated below. For ease of analysis, figures below have been rounded. The examples below assume that the premium applicable to the final valuation date will be set at the lowest value indicated under “Key Terms” above. The actual premium applicable to the final valuation date will be determined on the pricing date.
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Hypothetical initial underlying value: |
100.00 |
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Hypothetical final buffer value: |
85.00 (85.00% of the hypothetical initial underlying value) |
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Hypothetical autocall barrier value: |
90.00 (90.00% of the hypothetical initial underlying value) |
Example 1—Upside Scenario. The final underlying value is 110.00, resulting in a 10.00% underlying return. In this example, the final underlying value is greater than the autocall barrier value.
Payment at maturity per security = $1,000 + the premium applicable to the final valuation date
= $1,000 + $400
= $1,400
In this scenario, because the final underlying value is greater than the autocall barrier value, you would be repaid the stated principal amount of your securities at maturity plus the premium applicable to the final valuation date.
Example 2—Par Scenario. The final underlying value is 87.00, resulting in a -13.00% underlying return. In this example, the final underlying value is less than the autocall barrier value but greater than the final buffer value.
Payment at maturity per security = $1,000
In this scenario, the underlying has depreciated from the initial underlying value to the final underlying value so that the final underlying value is less than the autocall barrier value but not below the final buffer value. As a result, you would be repaid the stated principal amount of your securities at maturity but would not receive any positive return on your investment.
Example 3—Downside Scenario A. The final underlying value is 70.00, resulting in a -30.00% underlying return. In this example, the final underlying value is less than the final buffer value.
Payment at maturity per security = $1,000 + [$1,000 × the buffer rate × (the underlying return + the buffer percentage)]
= $1,000 + [$1,000 × 1.176471 × (-30.00% + 15.00%)]
= $1,000 + [$1,000 × 1.176471 × -15.00%]
= $1,000 + -$176.471
= $823.529
In this scenario, the underlying has depreciated from the initial underlying value to the final underlying value by more than the buffer percentage. As a result, your total return at maturity in this scenario would be negative and would reflect a loss of more than 1% of the stated principal amount of your securities (at a rate equal to the buffer rate) for every 1% by which the underlying declined beyond the buffer percentage.
Example 4—Downside Scenario B. The final underlying value is 30.00, resulting in a -70.00% underlying return. In this example, the final underlying value is less than the final buffer value.
Payment at maturity per security = $1,000 + [$1,000 × the buffer rate × (the underlying return + the buffer percentage)]
= $1,000 + [$1,000 × 1.176471 × (-70.00% + 15.00%)]
= $1,000 + [$1,000 × 1.176471 × -55.00%]
= $1,000 + -$647.059
= $352.941
In this scenario, the underlying has depreciated from the initial underlying value to the final underlying value by more than the buffer percentage. As a result, your total return at maturity in this scenario would be negative and would reflect a loss of more than 1% of the stated principal amount of your securities (at a rate equal to the buffer rate) for every 1% by which the underlying declined beyond the buffer percentage. A comparison of this example with the previous example illustrates the diminishing benefit of the buffer the greater the depreciation of the underlying. The greater the depreciation of the underlying on the final valuation date, the closer your negative return on the securities will be to the depreciation of the underlying.
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Citigroup Global Markets Holdings Inc. |
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Summary Risk Factors
An investment in the securities is significantly riskier than an investment in conventional debt securities. The securities are subject to all of the risks associated with an investment in our conventional debt securities (guaranteed by Citigroup Inc.), including the risk that we and Citigroup Inc. may default on our obligations under the securities, and are also subject to risks associated with the underlying. Accordingly, the securities are suitable only for investors who are capable of understanding the complexities and risks of the securities. You should consult your own financial, tax and legal advisors as to the risks of an investment in the securities and the suitability of the securities in light of your particular circumstances.
The following is a summary of certain key risk factors for investors in the securities. You should read this summary together with the more detailed description of risks relating to an investment in the securities contained in the section “Risk Factors Relating to the Securities” beginning on page EA-7 in the accompanying product supplement. You should also carefully read the risk factors included in the accompanying prospectus supplement and in the documents incorporated by reference in the accompanying prospectus, including Citigroup Inc.’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, which describe risks relating to the business of Citigroup Inc. more generally.
■You may lose a significant portion or all of your investment. Unlike conventional debt securities, the securities do not provide for the repayment of the stated principal amount at maturity in all circumstances. If the securities are not automatically redeemed prior to maturity, your payment at maturity will depend on the final underlying value. If the final underlying value is less than the final buffer value, which means that the underlying has depreciated from the initial underlying value by more than the buffer percentage, you will lose more than 1% of the stated principal amount of your securities for every 1% by which that depreciation exceeds the buffer percentage. You should understand that any decline in the final underlying value beyond the buffer percentage will result in a magnified loss to your investment based on the buffer rate, which will progressively offset any protection that the buffer percentage would offer. The lower the final underlying value, the less benefit you will receive from the buffer. There is no minimum payment at maturity on the securities, and you may lose up to all of your investment.
■Your potential return on the securities is limited. Your potential return on the securities is limited to the applicable premium payable upon automatic early redemption or at maturity, as described on the cover page of this pricing supplement. If the closing value of the underlying on one of the valuation dates is greater than or equal to the autocall barrier value, you will be repaid the stated principal amount of your securities and will receive the fixed premium applicable to that valuation date, regardless of how significantly the closing value of the underlying on that valuation date may exceed the initial underlying value. Accordingly, any premium may result in a return on the securities that is significantly less than the return you could have achieved on a direct investment in the underlying.
■The securities do not pay interest. Unlike conventional debt securities, the securities do not pay interest prior to maturity. You should not invest in the securities if you seek current income during the term of the securities.
■The securities may be automatically redeemed prior to maturity, limiting the term of the securities. If the closing value of the underlying on any valuation date (other than the final valuation date) is greater than or equal to the autocall barrier value, the securities will be automatically redeemed. If the securities are automatically redeemed following any valuation date prior to the final valuation date, they will cease to be outstanding and you will not receive the premium applicable to any later valuation date. Moreover, you may not be able to reinvest your funds in another investment that provides a similar yield with a similar level of risk.
■The securities offer downside exposure to the underlying, but no upside exposure to the underlying. You will not participate in any appreciation in the value of the underlying over the term of the securities. Consequently, your return on the securities will be limited to the applicable premium payable upon an automatic early redemption or at maturity and may be significantly less than the return on the underlying over the term of the securities.
■You will not receive dividends or have any other rights with respect to the underlying. You will not receive any dividends with respect to the underlying. This lost dividend yield may be significant over the term of the securities. The payment scenarios described in this pricing supplement do not show any effect of such lost dividend yield over the term of the securities. In addition, you will not have voting rights or any other rights with respect to the underlying or the stocks included in the underlying.
■The performance of the securities will depend on the closing values of the underlying solely on the valuation dates, which makes the securities particularly sensitive to volatility in the closing values of the underlying on or near the valuation dates. Whether the securities will be automatically redeemed prior to maturity will depend on the closing values of the underlying solely on the valuation dates (other than the final valuation date), regardless of the closing values of the underlying on other days during the term of the securities. If the securities are not automatically redeemed prior to maturity, what you receive at maturity will depend solely on the closing value of the underlying on the final valuation date, and not on any other day during the term of the securities. Because the performance of the securities depends on the closing values of the underlying on a limited number of dates, the securities will be particularly sensitive to volatility in the closing values of the underlying on or near the valuation dates. You should understand that the closing value of the underlying has historically been highly volatile.
■The securities are subject to the credit risk of Citigroup Global Markets Holdings Inc. and Citigroup Inc. If we default on our obligations under the securities and Citigroup Inc. defaults on its guarantee obligations, you may not receive anything owed to you under the securities.
■The securities will not be listed on any securities exchange and you may not be able to sell them prior to maturity. The securities will not be listed on any securities exchange. Therefore, there may be little or no secondary market for the securities. CGMI currently intends to make a secondary market in relation to the securities and to provide an indicative bid price for the securities on a daily basis. Any indicative bid price for the securities provided by CGMI will be determined in CGMI’s sole discretion, taking into account prevailing market conditions and other relevant factors, and will not be a representation by CGMI that the securities can be sold at that price, or at all. CGMI may suspend or terminate making a market and providing indicative bid prices without notice, at any time and for any reason. If
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Citigroup Global Markets Holdings Inc. |
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CGMI suspends or terminates making a market, there may be no secondary market at all for the securities because it is likely that CGMI will be the only broker-dealer that is willing to buy your securities prior to maturity. Accordingly, an investor must be prepared to hold the securities until maturity.
■The estimated value of the securities on the pricing date, based on CGMI’s proprietary pricing models and our internal funding rate, will be less than the issue price. The difference is attributable to certain costs associated with selling, structuring and hedging the securities that are included in the issue price. These costs include (i) any selling concessions or other fees paid in connection with the offering of the securities, (ii) hedging and other costs incurred by us and our affiliates in connection with the offering of the securities and (iii) the expected profit (which may be more or less than actual profit) to CGMI or other of our affiliates in connection with hedging our obligations under the securities. These costs adversely affect the economic terms of the securities because, if they were lower, the economic terms of the securities would be more favorable to you. The economic terms of the securities are also likely to be adversely affected by the use of our internal funding rate, rather than our secondary market rate, to price the securities. See “The estimated value of the securities would be lower if it were calculated based on our secondary market rate” below.
■The estimated value of the securities was determined for us by our affiliate using proprietary pricing models. CGMI derived the estimated value disclosed on the cover page of this pricing supplement from its proprietary pricing models. In doing so, it may have made discretionary judgments about the inputs to its models, such as the volatility of the closing value of the underlying, the dividend yield on the underlying and interest rates. CGMI’s views on these inputs may differ from your or others’ views, and as an underwriter in this offering, CGMI’s interests may conflict with yours. Both the models and the inputs to the models may prove to be wrong and therefore not an accurate reflection of the value of the securities. Moreover, the estimated value of the securities set forth on the cover page of this pricing supplement may differ from the value that we or our affiliates may determine for the securities for other purposes, including for accounting purposes. You should not invest in the securities because of the estimated value of the securities. Instead, you should be willing to hold the securities to maturity irrespective of the initial estimated value.
■The estimated value of the securities would be lower if it were calculated based on our secondary market rate. The estimated value of the securities included in this pricing supplement is calculated based on our internal funding rate, which is the rate at which we are willing to borrow funds through the issuance of the securities. Our internal funding rate is generally lower than our secondary market rate, which is the rate that CGMI will use in determining the value of the securities for purposes of any purchases of the securities from you in the secondary market. If the estimated value included in this pricing supplement were based on our secondary market rate, rather than our internal funding rate, it would likely be lower. We determine our internal funding rate based on factors such as the costs associated with the securities, which are generally higher than the costs associated with conventional debt securities, and our liquidity needs and preferences. Our internal funding rate is not an interest rate that is payable on the securities.
Because there is not an active market for traded instruments referencing our outstanding debt obligations, CGMI determines our secondary market rate based on the market price of traded instruments referencing the debt obligations of Citigroup Inc., our parent company and the guarantor of all payments due on the securities, but subject to adjustments that CGMI makes in its sole discretion. As a result, our secondary market rate is not a market-determined measure of our creditworthiness, but rather reflects the market’s perception of our parent company’s creditworthiness as adjusted for discretionary factors such as CGMI’s preferences with respect to purchasing the securities prior to maturity.
■The estimated value of the securities is not an indication of the price, if any, at which CGMI or any other person may be willing to buy the securities from you in the secondary market. Any such secondary market price will fluctuate over the term of the securities based on the market and other factors described in the next risk factor. Moreover, unlike the estimated value included in this pricing supplement, any value of the securities determined for purposes of a secondary market transaction will be based on our secondary market rate, which will likely result in a lower value for the securities than if our internal funding rate were used. In addition, any secondary market price for the securities will be reduced by a bid-ask spread, which may vary depending on the aggregate stated principal amount of the securities to be purchased in the secondary market transaction, and the expected cost of unwinding related hedging transactions. As a result, it is likely that any secondary market price for the securities will be less than the issue price.
■The value of the securities prior to maturity will fluctuate based on many unpredictable factors. The value of your securities prior to maturity will fluctuate based on the closing value of the underlying, the volatility of the closing value of the underlying, the dividend yield on the underlying, interest rates generally, the time remaining to maturity and our and Citigroup Inc.’s creditworthiness, as reflected in our secondary market rate, among other factors described under “Risk Factors Relating to the Securities—Risk Factors Relating to All Securities—The value of your securities prior to maturity will fluctuate based on many unpredictable factors” in the accompanying product supplement. Changes in the closing value of the underlying may not result in a comparable change in the value of your securities. You should understand that the value of your securities at any time prior to maturity may be significantly less than the issue price.
■Immediately following issuance, any secondary market bid price provided by CGMI, and the value that will be indicated on any brokerage account statements prepared by CGMI or its affiliates, will reflect a temporary upward adjustment. The amount of this temporary upward adjustment will steadily decline to zero over the temporary adjustment period. See “Valuation of the Securities” in this pricing supplement.
■Our offering of the securities is not a recommendation of the underlying. The fact that we are offering the securities does not mean that we believe that investing in an instrument linked to the underlying is likely to achieve favorable returns. In fact, as we are part of a global financial institution, our affiliates may have positions (including short positions) in the underlying or in instruments related to the underlying, and may publish research or express opinions, that in each case are inconsistent with an investment linked to the underlying. These and other activities of our affiliates may affect the closing value of the underlying in a way that negatively affects the value of and your return on the securities.
■The closing value of the underlying may be adversely affected by our or our affiliates’ hedging and other trading activities. We expect to hedge our obligations under the securities through CGMI or other of our affiliates, who may take positions in the underlying or in
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Citigroup Global Markets Holdings Inc. |
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financial instruments related to the underlying and may adjust such positions during the term of the securities. Our affiliates also take positions in the underlying or in financial instruments related to the underlying on a regular basis (taking long or short positions or both), for their accounts, for other accounts under their management or to facilitate transactions on behalf of customers. These activities could affect the closing value of the underlying in a way that negatively affects the value of and your return on the securities. They could also result in substantial returns for us or our affiliates while the value of the securities declines.
■We and our affiliates may have economic interests that are adverse to yours as a result of our affiliates’ business activities. Our affiliates engage in business activities with a wide range of companies. These activities include extending loans, making and facilitating investments, underwriting securities offerings and providing advisory services. These activities could involve or affect the underlying in a way that negatively affects the value of and your return on the securities. They could also result in substantial returns for us or our affiliates while the value of the securities declines. In addition, in the course of this business, we or our affiliates may acquire non-public information, which will not be disclosed to you.
■The calculation agent, which is an affiliate of ours, will make important determinations with respect to the securities. If certain events occur during the term of the securities, such as market disruption events and other events with respect to the underlying, CGMI, as calculation agent, will be required to make discretionary judgments that could significantly affect your return on the securities. In making these judgments, the calculation agent’s interests as an affiliate of ours could be adverse to your interests as a holder of the securities. See “Risk Factors Relating to the Securities—Risk Factors Relating to All Securities—The calculation agent, which is an affiliate of ours, will make important determinations with respect to the securities” in the accompanying product supplement.
■Changes that affect the underlying may affect the value of your securities. The sponsor of the underlying may at any time make methodological changes or other changes in the manner in which it operates that could affect the value of the underlying. We are not affiliated with the underlying sponsor and, accordingly, we have no control over any changes such sponsor may make. Such changes could adversely affect the performance of the underlying and the value of and your return on the securities.
■The U.S. federal tax consequences of an investment in the securities are unclear. There is no direct legal authority regarding the proper U.S. federal tax treatment of the securities, and we do not plan to request a ruling from the Internal Revenue Service (the “IRS”). Consequently, significant aspects of the tax treatment of the securities are uncertain, and the IRS or a court might not agree with the treatment of the securities as prepaid forward contracts. If the IRS were successful in asserting an alternative treatment of the securities, the tax consequences of the ownership and disposition of the securities might be materially and adversely affected. For example, as discussed below, there is a substantial risk that the IRS could seek to treat the securities as debt instruments. Moreover, future legislation, Treasury regulations or IRS guidance could adversely affect the U.S. federal tax treatment of the securities, possibly retroactively.
If you are a non-U.S. investor, you should review the discussion of withholding tax issues in “United States Federal Tax Considerations—Non-U.S. Holders” below.
You should read carefully the discussion under “United States Federal Tax Considerations” and “Risk Factors Relating to the Securities” in the accompanying product supplement and “United States Federal Tax Considerations” in this pricing supplement. You should also consult your tax adviser regarding the U.S. federal tax consequences of an investment in the securities, as well as tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.
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Citigroup Global Markets Holdings Inc. |
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Information About the S&P 500® Index
The S&P 500® Index consists of the common stocks of 500 issuers selected to provide a performance benchmark for the large capitalization segment of the U.S. equity markets. It is calculated and maintained by S&P Dow Jones Indices LLC.
Please refer to the section “Equity Index Descriptions— The S&P U.S. Indices” in the accompanying underlying supplement for additional information.
We have derived all information regarding the S&P 500® Index from publicly available information and have not independently verified any information regarding the S&P 500® Index. This pricing supplement relates only to the securities and not to the S&P 500® Index. We make no representation as to the performance of the S&P 500® Index over the term of the securities.
The securities represent obligations of Citigroup Global Markets Holdings Inc. (guaranteed by Citigroup Inc.) only. The sponsor of the S&P 500® Index is not involved in any way in this offering and has no obligation relating to the securities or to holders of the securities.
Historical Information
The closing value of the S&P 500® Index on June 24, 2025 was 6,092.18.
The graph below shows the closing value of the S&P 500® Index for each day such value was available from January 2, 2015 to June 24, 2025. We obtained the closing values from Bloomberg L.P., without independent verification. You should not take historical closing values as an indication of future performance.
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S&P 500® Index – Historical Closing Values |
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Citigroup Global Markets Holdings Inc. |
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United States Federal Tax Considerations
You should read carefully the discussion under “United States Federal Tax Considerations” and “Risk Factors Relating to the Securities” in the accompanying product supplement and “Summary Risk Factors” in this pricing supplement.
Due to the lack of any controlling legal authority, there is substantial uncertainty regarding the U.S. federal income tax consequences of an investment in the securities. In the opinion of our counsel, Davis Polk & Wardwell LLP, it is reasonable under current law to treat a security as a prepaid forward contract for U.S. federal income tax purposes. However, our counsel has advised us that it is unable to conclude affirmatively that this treatment is more likely than not to be upheld, and that alternative treatments are possible. Moreover, our counsel’s opinion is based on market conditions as of the date of this preliminary pricing supplement and is subject to confirmation on the pricing date.
Assuming this treatment of the securities is respected and subject to the discussion in “United States Federal Tax Considerations” in the accompanying product supplement, the following U.S. federal income tax consequences should result under current law:
●You should not recognize taxable income over the term of the securities prior to maturity, other than pursuant to a sale or exchange.
●Upon a sale or exchange of a security (including retirement at maturity), you should recognize capital gain or loss equal to the difference between the amount realized and your tax basis in the security. Such gain or loss should be long-term capital gain or loss if you held the security for more than one year.
We do not plan to request a ruling from the IRS regarding the treatment of the securities. An alternative characterization of the securities could materially and adversely affect the tax consequences of ownership and disposition of the securities, including the timing and character of income recognized. In particular, due to the terms of the securities, there is a substantial risk that the IRS could seek to treat the securities as debt instruments for U.S. federal income tax purposes. In that event, you would be required to accrue into income original issue discount on the securities every year at a “comparable yield” determined as of the time of issuance and recognize all income and gain in respect of the securities as ordinary income. In addition, the U.S. Treasury Department and the IRS have requested comments on various issues regarding the U.S. federal income tax treatment of “prepaid forward contracts” and similar financial instruments and have indicated that such transactions may be the subject of future regulations or other guidance. Furthermore, members of Congress have proposed legislative changes to the tax treatment of derivative contracts. Any legislation, Treasury regulations or other guidance promulgated after consideration of these issues could materially and adversely affect the tax consequences of an investment in the securities, possibly with retroactive effect. You should consult your tax adviser regarding possible alternative tax treatments of the securities and potential changes in applicable law.
Non-U.S. Holders. Subject to the discussions below and in “United States Federal Tax Considerations” in the accompanying product supplement, if you are a Non-U.S. Holder (as defined in the accompanying product supplement) of the securities, you generally should not be subject to U.S. federal withholding or income tax in respect of any amount paid to you with respect to the securities, provided that (i) income in respect of the securities is not effectively connected with your conduct of a trade or business in the United States, and (ii) you comply with the applicable certification requirements.
As discussed under “United States Federal Tax Considerations—Tax Consequences to Non-U.S. Holders” in the accompanying product supplement, Section 871(m) of the Code and Treasury regulations promulgated thereunder (“Section 871(m)”) generally impose a 30% withholding tax on dividend equivalents paid or deemed paid to Non-U.S. Holders with respect to certain financial instruments linked to U.S. equities (“U.S. Underlying Equities”) or indices that include U.S. Underlying Equities. Section 871(m) generally applies to instruments that substantially replicate the economic performance of one or more U.S. Underlying Equities, as determined based on tests set forth in the applicable Treasury regulations. However, the regulations, as modified by an IRS notice, exempt financial instruments issued prior to January 1, 2027 that do not have a “delta” of one. Based on the terms of the securities and representations provided by us as of the date of this preliminary pricing supplement, our counsel is of the opinion that the securities should not be treated as transactions that have a “delta” of one within the meaning of the regulations with respect to any U.S. Underlying Equity and, therefore, should not be subject to withholding tax under Section 871(m). However, the final determination regarding the treatment of the securities under Section 871(m) will be made as of the pricing date for the securities, and it is possible that the securities will be subject to withholding tax under Section 871(m) based on the circumstances as of that date.
A determination that the securities are not subject to Section 871(m) is not binding on the IRS, and the IRS may disagree with this treatment. Moreover, Section 871(m) is complex and its application may depend on your particular circumstances, including your other transactions. You should consult your tax adviser regarding the potential application of Section 871(m) to the securities.
If withholding tax applies to the securities, we will not be required to pay any additional amounts with respect to amounts withheld.
You should read the section entitled “United States Federal Tax Considerations” in the accompanying product supplement. The preceding discussion, when read in combination with that section, constitutes the full opinion of Davis Polk & Wardwell LLP regarding the material U.S. federal tax consequences of owning and disposing of the securities.
You should also consult your tax adviser regarding all aspects of the U.S. federal income and estate tax consequences of an investment in the securities and any tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.
Supplemental Plan of Distribution
CGMI, an affiliate of Citigroup Global Markets Holdings Inc. and the underwriter of the sale of the securities, is acting as principal and will not receive any underwriting fee for any securities sold in the offering.
See “Plan of Distribution; Conflicts of Interest” in the accompanying product supplement and “Plan of Distribution” in each of the accompanying prospectus supplement and prospectus for additional information.
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Valuation of the Securities
CGMI calculated the estimated value of the securities set forth on the cover page of this pricing supplement based on proprietary pricing models. CGMI’s proprietary pricing models generated an estimated value for the securities by estimating the value of a hypothetical package of financial instruments that would replicate the payout on the securities, which consists of a fixed-income bond (the “bond component”) and one or more derivative instruments underlying the economic terms of the securities (the “derivative component”). CGMI calculated the estimated value of the bond component using a discount rate based on our internal funding rate. CGMI calculated the estimated value of the derivative component based on a proprietary derivative-pricing model, which generated a theoretical price for the instruments that constitute the derivative component based on various inputs, including the factors described under “Summary Risk Factors—The value of the securities prior to maturity will fluctuate based on many unpredictable factors” in this pricing supplement, but not including our or Citigroup Inc.’s creditworthiness. These inputs may be market-observable or may be based on assumptions made by CGMI in its discretionary judgment.
The estimated value of the securities is a function of the terms of the securities and the inputs to CGMI’s proprietary pricing models. As of the date of this preliminary pricing supplement, it is uncertain what the estimated value of the securities will be on the pricing date because certain terms of the securities have not yet been fixed and because it is uncertain what the values of the inputs to CGMI’s proprietary pricing models will be on the pricing date.
For a period of approximately four months following issuance of the securities, the price, if any, at which CGMI would be willing to buy the securities from investors, and the value that will be indicated for the securities on any brokerage account statements prepared by CGMI or its affiliates (which value CGMI may also publish through one or more financial information vendors), will reflect a temporary upward adjustment from the price or value that would otherwise be determined. This temporary upward adjustment represents a portion of the hedging profit expected to be realized by CGMI or its affiliates over the term of the securities. The amount of this temporary upward adjustment will decline to zero on a straight-line basis over the four-month temporary adjustment period. However, CGMI is not obligated to buy the securities from investors at any time. See “Summary Risk Factors—The securities will not be listed on any securities exchange and you may not be able to sell them prior to maturity.”
Contact
Clients may contact their local brokerage representative. Third-party distributors may contact Citi Structured Investment Sales at (212) 723-7005.
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FAQ
When can the Citigroup (C) Autocallable Securities be automatically redeemed?
What premium do investors receive on early redemption of the Citigroup notes?
How much downside protection do the Citigroup Autocallable Securities offer at maturity?
Do the Citigroup Autocallable Securities pay periodic interest or dividends?
What is the estimated value of the securities versus the $1,000 issue price?
