[424B2] Royal Bank of Canada Prospectus Supplement
Citigroup Global Markets Holdings Inc. (guaranteed by Citigroup Inc.) is marketing an unsecured, senior structured note – “Callable Contingent Coupon Equity-Linked Securities” – that references the worst-performing of three underlyings: the Nasdaq-100 Index, the Russell 2000 Index and the Utilities Select Sector SPDR Fund (ticker XLU). The notes will be issued at $1,000 par on 23 Jul 2025 and, unless called, mature on 22 Apr 2027.
Coupon mechanics. On each monthly valuation date the note pays a contingent coupon of at least 0.9583% (≈ 11.50% p.a.) only if the worst-performing underlying closes at or above 70% of its initial level (the “coupon barrier”). If the worst underlying closes below that threshold, the investor forgoes that coupon. Coupons are therefore neither fixed nor cumulative.
Issuer call feature. Citigroup may redeem the notes in full on any of 18 scheduled potential redemption dates beginning 20 Oct 2025. If called, holders receive par plus any due coupon, ending further upside from the high yield feature and exposing investors to reinvestment risk.
Principal repayment. At maturity, if the notes have not been called and the worst underlying finishes ≥ 70% of its initial value (the “final barrier”), investors receive par plus the final coupon (if earned). If the worst underlying settles < 70%, principal is repaid on a 1-for-1 basis with the underlying loss; a decline of 30%–100% translates into a loss of 30%–100% of principal, with no floor.
Economic terms & fees. Issue price is $1,000; estimated value on the pricing date is expected to be ≥ $936.50, implying roughly 6.35% in embedded upfront costs (underwriting fee up to $6.50 plus structuring/hedging costs). The notes will not be listed, and Citigroup (through CGMI) may, but is not obligated to, make a secondary market. All payments are subject to the credit risk of both Citigroup Global Markets Holdings Inc. and its parent guarantor, Citigroup Inc.
Key risks highlighted. 1) Contingent and non-cumulative coupon; 2) Worst-of structure amplifies downside; 3) Early call limits income potential; 4) Liquidity likely thin; 5) Estimated value below issue price; 6) Complex U.S. tax treatment and potential 30% withholding for non-U.S. investors; 7) Investors bear Citigroup credit risk.
Target investor. Sophisticated income-oriented investors comfortable with equity index volatility, issuer credit risk and the possibility of losing principal in exchange for double-digit conditional yield.
Citigroup Global Markets Holdings Inc. (garantita da Citigroup Inc.) sta proponendo un'obbligazione strutturata senior non garantita – "Callable Contingent Coupon Equity-Linked Securities" – che fa riferimento al peggior rendimento tra tre sottostanti: l'indice Nasdaq-100, l'indice Russell 2000 e il Utilities Select Sector SPDR Fund (ticker XLU). Le obbligazioni saranno emesse a valore nominale di $1.000 il 23 luglio 2025 e, salvo richiamo anticipato, scadranno il 22 aprile 2027.
Meccanismo del coupon. In ogni data di valutazione mensile il titolo paga un coupon condizionato di almeno 0,9583% (circa 11,50% annuo) solo se il sottostante con la performance peggiore chiude a o sopra il 70% del suo valore iniziale (la "barriera del coupon"). Se il sottostante peggiore chiude sotto questa soglia, l'investitore non riceve il coupon. I coupon quindi non sono né fissi né cumulativi.
Opzione di richiamo da parte dell'emittente. Citigroup può rimborsare integralmente le obbligazioni in una delle 18 date di potenziale richiamo previste a partire dal 20 ottobre 2025. In caso di richiamo, i detentori ricevono il valore nominale più eventuali coupon dovuti, interrompendo il potenziale di rendimento elevato e esponendo gli investitori al rischio di reinvestimento.
Rimborso del capitale. Alla scadenza, se le obbligazioni non sono state richiamate e il sottostante peggiore si attesta ≥ 70% del valore iniziale (la "barriera finale"), gli investitori ricevono il valore nominale più l'ultimo coupon (se maturato). Se il sottostante peggiore chiude sotto il 70%, il capitale viene rimborsato in proporzione alla perdita del sottostante; un calo tra il 30% e il 100% si traduce in una perdita corrispondente del capitale, senza alcun limite minimo.
Termini economici e commissioni. Il prezzo di emissione è $1.000; il valore stimato alla data di pricing è atteso ≥ $936,50, implicando costi iniziali incorporati di circa il 6,35% (compresi fino a $6,50 di commissione di collocamento più costi di strutturazione e copertura). Le obbligazioni non saranno quotate e Citigroup (attraverso CGMI) potrà, ma non è obbligata, a creare un mercato secondario. Tutti i pagamenti sono soggetti al rischio di credito sia di Citigroup Global Markets Holdings Inc. che del suo garante Citigroup Inc.
Principali rischi evidenziati. 1) Coupon condizionato e non cumulativo; 2) struttura worst-of che amplifica il rischio di ribasso; 3) richiamo anticipato limita il potenziale di reddito; 4) liquidità probabilmente scarsa; 5) valore stimato inferiore al prezzo di emissione; 6) trattamento fiscale USA complesso e possibile ritenuta del 30% per investitori non statunitensi; 7) rischio di credito dell'emittente a carico degli investitori.
Investitore target. Investitori sofisticati orientati al reddito, che accettano la volatilità degli indici azionari, il rischio di credito dell'emittente e la possibilità di perdere capitale in cambio di un rendimento condizionato a doppia cifra.
Citigroup Global Markets Holdings Inc. (garantizado por Citigroup Inc.) está lanzando una nota estructurada senior no garantizada – "Callable Contingent Coupon Equity-Linked Securities" – que referencia al peor rendimiento entre tres subyacentes: el índice Nasdaq-100, el índice Russell 2000 y el Utilities Select Sector SPDR Fund (ticker XLU). Las notas se emitirán a $1,000 valor nominal el 23 de julio de 2025 y, salvo que sean llamadas, vencerán el 22 de abril de 2027.
Mecánica del cupón. En cada fecha de valoración mensual, la nota paga un cupón contingente de al menos 0.9583% (≈ 11.50% anual) solo si el subyacente con peor desempeño cierra en o por encima del 70% de su nivel inicial (la "barrera del cupón"). Si el peor subyacente cierra por debajo de ese umbral, el inversionista pierde ese cupón. Por lo tanto, los cupones no son fijos ni acumulativos.
Opción de llamada del emisor. Citigroup puede redimir las notas en su totalidad en cualquiera de las 18 fechas programadas de posible redención a partir del 20 de octubre de 2025. Si se llaman, los tenedores reciben el valor nominal más cualquier cupón adeudado, terminando el potencial de rendimiento alto y exponiendo a los inversionistas al riesgo de reinversión.
Reembolso del principal. Al vencimiento, si las notas no han sido llamadas y el peor subyacente termina ≥ 70% de su valor inicial (la "barrera final"), los inversionistas reciben el valor nominal más el cupón final (si corresponde). Si el peor subyacente cierra < 70%, el principal se reembolsa en proporción a la pérdida del subyacente; una caída del 30%–100% se traduce en una pérdida del 30%–100% del principal, sin límite inferior.
Términos económicos y comisiones. El precio de emisión es $1,000; el valor estimado en la fecha de precio se espera sea ≥ $936.50, implicando costos iniciales incorporados de aproximadamente 6.35% (comisión de suscripción hasta $6.50 más costos de estructuración/cobertura). Las notas no estarán listadas, y Citigroup (a través de CGMI) puede, pero no está obligado a, crear un mercado secundario. Todos los pagos están sujetos al riesgo crediticio tanto de Citigroup Global Markets Holdings Inc. como de su garante Citigroup Inc.
Riesgos clave destacados. 1) Cupón condicional y no acumulativo; 2) estructura worst-of que amplifica la caída; 3) llamada anticipada limita el potencial de ingresos; 4) liquidez probablemente baja; 5) valor estimado por debajo del precio de emisión; 6) tratamiento fiscal estadounidense complejo y posible retención del 30% para inversores no estadounidenses; 7) los inversores asumen el riesgo crediticio de Citigroup.
Inversor objetivo. Inversores sofisticados orientados a ingresos, cómodos con la volatilidad de índices de renta variable, riesgo crediticio del emisor y la posibilidad de perder principal a cambio de un rendimiento condicional de dos dígitos.
Citigroup Global Markets Holdings Inc. (Citigroup Inc.의 보증을 받음)는 Nasdaq-100 지수, Russell 2000 지수, Utilities Select Sector SPDR Fund (티커 XLU) 세 가지 기초자산 중 최저 성과를 기준으로 하는 무담보 선순위 구조화 채권 "Callable Contingent Coupon Equity-Linked Securities"를 마케팅하고 있습니다. 이 채권은 2025년 7월 23일에 액면가 $1,000로 발행되며, 조기 상환되지 않으면 2027년 4월 22일에 만기됩니다.
쿠폰 구조. 매월 평가일마다 최저 성과 기초자산이 초기 수준의 70% 이상(“쿠폰 장벽”)으로 마감하는 경우에만 최소 0.9583%(연율 약 11.50%)의 조건부 쿠폰을 지급합니다. 최저 성과 기초자산이 이 기준 미만으로 마감하면 해당 쿠폰은 지급되지 않습니다. 쿠폰은 고정되거나 누적되지 않습니다.
발행자 조기 상환 권리. Citigroup은 2025년 10월 20일부터 시작되는 18개의 예정된 잠재적 상환일 중 어느 날에든 전액 상환할 수 있습니다. 조기 상환 시 보유자는 액면가와 지급 예정 쿠폰을 받고, 고수익 특성에 따른 추가 수익 기회는 종료되며 재투자 위험에 노출됩니다.
원금 상환. 만기 시 조기 상환되지 않았고 최저 성과 기초자산이 초기 가치의 70% 이상(“최종 장벽”)이면 투자자는 액면가와 최종 쿠폰(지급 시)을 받습니다. 최저 성과 기초자산이 70% 미만으로 마감하면 원금은 기초자산 손실에 비례하여 상환됩니다; 30%~100% 하락은 원금의 30%~100% 손실로 이어지며 하한선이 없습니다.
경제 조건 및 수수료. 발행가는 $1,000이며, 가격 책정일의 예상 가치는 ≥ $936.50로 약 6.35%의 선취 비용(최대 $6.50의 인수 수수료 및 구조화/헤지 비용 포함)이 내포되어 있습니다. 채권은 상장되지 않으며, Citigroup(CGMI를 통해)은 2차 시장을 조성할 수 있지만 의무는 없습니다. 모든 지급은 Citigroup Global Markets Holdings Inc.와 모회사 Citigroup Inc.의 신용 위험에 노출됩니다.
주요 위험 사항. 1) 조건부 및 비누적 쿠폰; 2) 최저 성과 구조로 하락 위험 증폭; 3) 조기 상환으로 수익 잠재력 제한; 4) 유동성 낮음 가능성; 5) 발행가보다 낮은 예상 가치; 6) 복잡한 미국 세무 처리 및 비미국 투자자 대상 30% 원천징수 가능성; 7) 투자자는 Citigroup 신용 위험 부담.
대상 투자자. 주식 지수 변동성, 발행자 신용 위험, 원금 손실 가능성을 감수하고 두 자릿수 조건부 수익을 추구하는 고급 소득 지향 투자자.
Citigroup Global Markets Holdings Inc. (garanti par Citigroup Inc.) commercialise une note structurée senior non garantie – "Callable Contingent Coupon Equity-Linked Securities" – qui référence la moins bonne performance parmi trois sous-jacents : l’indice Nasdaq-100, l’indice Russell 2000 et le fonds Utilities Select Sector SPDR (ticker XLU). Les notes seront émises à 1 000 $ de valeur nominale le 23 juillet 2025 et, sauf remboursement anticipé, arriveront à échéance le 22 avril 2027.
Mécanique du coupon. À chaque date d’évaluation mensuelle, la note verse un coupon conditionnel d’au moins 0,9583 % (environ 11,50 % par an) seulement si le sous-jacent le moins performant clôture à ou au-dessus de 70 % de son niveau initial (la "barrière du coupon"). Si le sous-jacent le moins performant clôture en dessous de ce seuil, l’investisseur ne perçoit pas ce coupon. Les coupons ne sont donc ni fixes ni cumulés.
Option de remboursement anticipé de l’émetteur. Citigroup peut rembourser intégralement les notes à l’une des 18 dates potentielles de rachat prévues à partir du 20 octobre 2025. En cas de remboursement anticipé, les détenteurs reçoivent la valeur nominale plus tout coupon dû, mettant fin au potentiel de rendement élevé et exposant les investisseurs au risque de réinvestissement.
Remboursement du principal. À l’échéance, si les notes n’ont pas été rappelées et que le sous-jacent le moins performant est ≥ 70 % de sa valeur initiale (la "barrière finale"), les investisseurs reçoivent la valeur nominale plus le coupon final (le cas échéant). Si le sous-jacent le moins performant clôture < 70 %, le principal est remboursé au prorata de la perte du sous-jacent ; une baisse de 30 % à 100 % entraîne une perte correspondante du principal, sans plancher.
Conditions économiques et frais. Le prix d’émission est de 1 000 $ ; la valeur estimée à la date de tarification devrait être ≥ 936,50 $, impliquant environ 6,35 % de coûts initiaux intégrés (commission de souscription jusqu’à 6,50 $ plus coûts de structuration/couverture). Les notes ne seront pas cotées, et Citigroup (via CGMI) peut, mais n’est pas obligé, d’assurer un marché secondaire. Tous les paiements sont soumis au risque de crédit de Citigroup Global Markets Holdings Inc. et de sa société mère Citigroup Inc.
Principaux risques mis en avant. 1) Coupon conditionnel et non cumulatif ; 2) structure worst-of amplifiant le risque à la baisse ; 3) remboursement anticipé limitant le potentiel de revenu ; 4) liquidité probablement faible ; 5) valeur estimée inférieure au prix d’émission ; 6) traitement fiscal américain complexe et possible retenue à la source de 30 % pour les investisseurs non américains ; 7) les investisseurs supportent le risque de crédit de Citigroup.
Investisseur cible. Investisseurs sophistiqués orientés vers le revenu, à l’aise avec la volatilité des indices boursiers, le risque de crédit de l’émetteur et la possibilité de perdre le capital en échange d’un rendement conditionnel à deux chiffres.
Citigroup Global Markets Holdings Inc. (garantiert durch Citigroup Inc.) bietet eine unbesicherte, vorrangige strukturierte Anleihe an – "Callable Contingent Coupon Equity-Linked Securities" – die sich auf den schlechtesten Performer von drei Basiswerten bezieht: den Nasdaq-100 Index, den Russell 2000 Index und den Utilities Select Sector SPDR Fund (Ticker XLU). Die Anleihen werden am 23. Juli 2025 zum Nennwert von 1.000 $ ausgegeben und laufen, sofern sie nicht vorzeitig zurückgerufen werden, bis zum 22. April 2027.
Coupon-Mechanik. An jedem monatlichen Bewertungstag zahlt die Anleihe einen bedingten Coupon von mindestens 0,9583 % (ca. 11,50 % p.a.) nur wenn der schlechteste Basiswert bei oder über 70 % seines Anfangswerts schließt (die "Coupon-Barriere"). Schließt der schlechteste Basiswert unter diesem Schwellenwert, entfällt der Coupon. Die Coupons sind daher weder fest noch kumulativ.
Emittenten-Kündigungsrecht. Citigroup kann die Anleihen an einem von 18 geplanten möglichen Rückzahlungsterminen ab dem 20. Oktober 2025 vollständig zurückzahlen. Im Falle einer Kündigung erhalten die Inhaber den Nennwert plus fällige Coupons, womit das weitere Aufwärtspotenzial durch die hohe Rendite endet und Anleger dem Reinvestitionsrisiko ausgesetzt sind.
Rückzahlung des Kapitals. Bei Fälligkeit, sofern die Anleihen nicht zurückgerufen wurden und der schlechteste Basiswert ≥ 70 % seines Anfangswerts schließt (die "Endbarriere"), erhalten Anleger den Nennwert plus den letzten Coupon (sofern verdient). Schließt der schlechteste Basiswert unter 70 %, wird das Kapital anteilig entsprechend dem Verlust des Basiswerts zurückgezahlt; ein Rückgang von 30 %–100 % führt zu einem Verlust von 30 %–100 % des Kapitals, ohne Untergrenze.
Wirtschaftliche Bedingungen & Gebühren. Der Ausgabepreis beträgt 1.000 $; der geschätzte Wert am Preisfeststellungstag wird voraussichtlich ≥ 936,50 $ sein, was etwa 6,35 % eingebettete Vorabkosten (Underwriting-Gebühr bis zu 6,50 $ plus Strukturierungs-/Hedging-Kosten) impliziert. Die Anleihen werden nicht notiert, und Citigroup (über CGMI) kann, ist aber nicht verpflichtet, einen Sekundärmarkt stellen. Alle Zahlungen unterliegen dem Kreditrisiko von Citigroup Global Markets Holdings Inc. und dessen Muttergesellschaft Citigroup Inc.
Hervorgehobene Hauptrisiken. 1) Bedingter und nicht kumulativer Coupon; 2) Worst-of-Struktur verstärkt Abwärtsrisiko; 3) Vorzeitige Kündigung begrenzt Einkommenspotenzial; 4) Wahrscheinlich geringe Liquidität; 5) Geschätzter Wert unter Ausgabepreis; 6) Komplexe US-Steuerbehandlung und mögliche 30% Quellensteuer für Nicht-US-Investoren; 7) Anleger tragen Citigroup-Kreditrisiko.
Zielinvestor. Anspruchsvolle einkommensorientierte Anleger, die mit der Volatilität von Aktienindizes, Emittenten-Kreditrisiko und der Möglichkeit eines Kapitalverlusts zugunsten einer zweistelligen bedingten Rendite umgehen können.
- Double-digit contingent coupon of ≈11.5% p.a. offers materially higher carry than conventional Citi senior notes of similar maturity.
- 70% barrier provides partial downside buffer; if the worst underlying finishes above it, principal is fully repaid.
- Full guarantee by Citigroup Inc. adds an additional layer of credit support relative to non-guaranteed issuers.
- Worst-of three underlyings magnifies downside; one index breach below barrier triggers principal loss and coupon cancellation.
- Issuer call optionality allows Citi to redeem when conditions favour investors, capping upside and creating reinvestment risk.
- Estimated value ($≈936.5) is below issue price, indicating ~6% upfront cost to investors.
- No exchange listing; secondary liquidity depends solely on CGMI, potentially at a significant discount.
- Complex tax treatment with possible 30% withholding for non-U.S. holders and uncertain IRS characterization.
Insights
TL;DR High conditional yield (≈11.5%) but worst-of, callable, and 70% barrier expose investors to significant principal and coupon risk.
The note offers an above-market headline coupon because investors are effectively selling a series of down-and-in puts on three correlated yet volatile equity benchmarks. The 70% coupon/final barriers are standard for two-year tenor structures but still leave material probability of breaching, especially given the inclusion of the small-cap Russell 2000. Citi’s unilateral call right skews outcomes toward the issuer: if underlyings perform favourably early, coupons stop and principal is merely returned. If performance deteriorates, Citi is unlikely to call, leaving investors exposed. With an estimated value ~6% below issue price and limited liquidity, secondary exits could be costly. From a portfolio perspective the notes may appeal to tactical yield seekers who anticipate range-bound markets over the next 21 months and who maintain a positive view on Citi’s credit. Overall, risk-adjusted appeal is neutral at best.
TL;DR Structure concentrates downside: one index drop below -30% triggers dollar-for-dollar principal loss; coupons can vanish entirely.
The multi-underlying worst-of design sharply increases tail risk relative to single-index notes. Historical drawdowns show that both the Russell 2000 and Nasdaq-100 have breached –30% multiple times over two-year windows, meaning probability of principal impairment is non-trivial. Credit risk is secondary but not negligible; Citi trades tighter than peers, yet subordinated investors should price it in. Tax and liquidity uncertainties further complicate valuation. From a pure risk standpoint the note is unfavourable compared with simpler high-grade fixed-income yielding ~5.5% today.
Citigroup Global Markets Holdings Inc. (garantita da Citigroup Inc.) sta proponendo un'obbligazione strutturata senior non garantita – "Callable Contingent Coupon Equity-Linked Securities" – che fa riferimento al peggior rendimento tra tre sottostanti: l'indice Nasdaq-100, l'indice Russell 2000 e il Utilities Select Sector SPDR Fund (ticker XLU). Le obbligazioni saranno emesse a valore nominale di $1.000 il 23 luglio 2025 e, salvo richiamo anticipato, scadranno il 22 aprile 2027.
Meccanismo del coupon. In ogni data di valutazione mensile il titolo paga un coupon condizionato di almeno 0,9583% (circa 11,50% annuo) solo se il sottostante con la performance peggiore chiude a o sopra il 70% del suo valore iniziale (la "barriera del coupon"). Se il sottostante peggiore chiude sotto questa soglia, l'investitore non riceve il coupon. I coupon quindi non sono né fissi né cumulativi.
Opzione di richiamo da parte dell'emittente. Citigroup può rimborsare integralmente le obbligazioni in una delle 18 date di potenziale richiamo previste a partire dal 20 ottobre 2025. In caso di richiamo, i detentori ricevono il valore nominale più eventuali coupon dovuti, interrompendo il potenziale di rendimento elevato e esponendo gli investitori al rischio di reinvestimento.
Rimborso del capitale. Alla scadenza, se le obbligazioni non sono state richiamate e il sottostante peggiore si attesta ≥ 70% del valore iniziale (la "barriera finale"), gli investitori ricevono il valore nominale più l'ultimo coupon (se maturato). Se il sottostante peggiore chiude sotto il 70%, il capitale viene rimborsato in proporzione alla perdita del sottostante; un calo tra il 30% e il 100% si traduce in una perdita corrispondente del capitale, senza alcun limite minimo.
Termini economici e commissioni. Il prezzo di emissione è $1.000; il valore stimato alla data di pricing è atteso ≥ $936,50, implicando costi iniziali incorporati di circa il 6,35% (compresi fino a $6,50 di commissione di collocamento più costi di strutturazione e copertura). Le obbligazioni non saranno quotate e Citigroup (attraverso CGMI) potrà, ma non è obbligata, a creare un mercato secondario. Tutti i pagamenti sono soggetti al rischio di credito sia di Citigroup Global Markets Holdings Inc. che del suo garante Citigroup Inc.
Principali rischi evidenziati. 1) Coupon condizionato e non cumulativo; 2) struttura worst-of che amplifica il rischio di ribasso; 3) richiamo anticipato limita il potenziale di reddito; 4) liquidità probabilmente scarsa; 5) valore stimato inferiore al prezzo di emissione; 6) trattamento fiscale USA complesso e possibile ritenuta del 30% per investitori non statunitensi; 7) rischio di credito dell'emittente a carico degli investitori.
Investitore target. Investitori sofisticati orientati al reddito, che accettano la volatilità degli indici azionari, il rischio di credito dell'emittente e la possibilità di perdere capitale in cambio di un rendimento condizionato a doppia cifra.
Citigroup Global Markets Holdings Inc. (garantizado por Citigroup Inc.) está lanzando una nota estructurada senior no garantizada – "Callable Contingent Coupon Equity-Linked Securities" – que referencia al peor rendimiento entre tres subyacentes: el índice Nasdaq-100, el índice Russell 2000 y el Utilities Select Sector SPDR Fund (ticker XLU). Las notas se emitirán a $1,000 valor nominal el 23 de julio de 2025 y, salvo que sean llamadas, vencerán el 22 de abril de 2027.
Mecánica del cupón. En cada fecha de valoración mensual, la nota paga un cupón contingente de al menos 0.9583% (≈ 11.50% anual) solo si el subyacente con peor desempeño cierra en o por encima del 70% de su nivel inicial (la "barrera del cupón"). Si el peor subyacente cierra por debajo de ese umbral, el inversionista pierde ese cupón. Por lo tanto, los cupones no son fijos ni acumulativos.
Opción de llamada del emisor. Citigroup puede redimir las notas en su totalidad en cualquiera de las 18 fechas programadas de posible redención a partir del 20 de octubre de 2025. Si se llaman, los tenedores reciben el valor nominal más cualquier cupón adeudado, terminando el potencial de rendimiento alto y exponiendo a los inversionistas al riesgo de reinversión.
Reembolso del principal. Al vencimiento, si las notas no han sido llamadas y el peor subyacente termina ≥ 70% de su valor inicial (la "barrera final"), los inversionistas reciben el valor nominal más el cupón final (si corresponde). Si el peor subyacente cierra < 70%, el principal se reembolsa en proporción a la pérdida del subyacente; una caída del 30%–100% se traduce en una pérdida del 30%–100% del principal, sin límite inferior.
Términos económicos y comisiones. El precio de emisión es $1,000; el valor estimado en la fecha de precio se espera sea ≥ $936.50, implicando costos iniciales incorporados de aproximadamente 6.35% (comisión de suscripción hasta $6.50 más costos de estructuración/cobertura). Las notas no estarán listadas, y Citigroup (a través de CGMI) puede, pero no está obligado a, crear un mercado secundario. Todos los pagos están sujetos al riesgo crediticio tanto de Citigroup Global Markets Holdings Inc. como de su garante Citigroup Inc.
Riesgos clave destacados. 1) Cupón condicional y no acumulativo; 2) estructura worst-of que amplifica la caída; 3) llamada anticipada limita el potencial de ingresos; 4) liquidez probablemente baja; 5) valor estimado por debajo del precio de emisión; 6) tratamiento fiscal estadounidense complejo y posible retención del 30% para inversores no estadounidenses; 7) los inversores asumen el riesgo crediticio de Citigroup.
Inversor objetivo. Inversores sofisticados orientados a ingresos, cómodos con la volatilidad de índices de renta variable, riesgo crediticio del emisor y la posibilidad de perder principal a cambio de un rendimiento condicional de dos dígitos.
Citigroup Global Markets Holdings Inc. (Citigroup Inc.의 보증을 받음)는 Nasdaq-100 지수, Russell 2000 지수, Utilities Select Sector SPDR Fund (티커 XLU) 세 가지 기초자산 중 최저 성과를 기준으로 하는 무담보 선순위 구조화 채권 "Callable Contingent Coupon Equity-Linked Securities"를 마케팅하고 있습니다. 이 채권은 2025년 7월 23일에 액면가 $1,000로 발행되며, 조기 상환되지 않으면 2027년 4월 22일에 만기됩니다.
쿠폰 구조. 매월 평가일마다 최저 성과 기초자산이 초기 수준의 70% 이상(“쿠폰 장벽”)으로 마감하는 경우에만 최소 0.9583%(연율 약 11.50%)의 조건부 쿠폰을 지급합니다. 최저 성과 기초자산이 이 기준 미만으로 마감하면 해당 쿠폰은 지급되지 않습니다. 쿠폰은 고정되거나 누적되지 않습니다.
발행자 조기 상환 권리. Citigroup은 2025년 10월 20일부터 시작되는 18개의 예정된 잠재적 상환일 중 어느 날에든 전액 상환할 수 있습니다. 조기 상환 시 보유자는 액면가와 지급 예정 쿠폰을 받고, 고수익 특성에 따른 추가 수익 기회는 종료되며 재투자 위험에 노출됩니다.
원금 상환. 만기 시 조기 상환되지 않았고 최저 성과 기초자산이 초기 가치의 70% 이상(“최종 장벽”)이면 투자자는 액면가와 최종 쿠폰(지급 시)을 받습니다. 최저 성과 기초자산이 70% 미만으로 마감하면 원금은 기초자산 손실에 비례하여 상환됩니다; 30%~100% 하락은 원금의 30%~100% 손실로 이어지며 하한선이 없습니다.
경제 조건 및 수수료. 발행가는 $1,000이며, 가격 책정일의 예상 가치는 ≥ $936.50로 약 6.35%의 선취 비용(최대 $6.50의 인수 수수료 및 구조화/헤지 비용 포함)이 내포되어 있습니다. 채권은 상장되지 않으며, Citigroup(CGMI를 통해)은 2차 시장을 조성할 수 있지만 의무는 없습니다. 모든 지급은 Citigroup Global Markets Holdings Inc.와 모회사 Citigroup Inc.의 신용 위험에 노출됩니다.
주요 위험 사항. 1) 조건부 및 비누적 쿠폰; 2) 최저 성과 구조로 하락 위험 증폭; 3) 조기 상환으로 수익 잠재력 제한; 4) 유동성 낮음 가능성; 5) 발행가보다 낮은 예상 가치; 6) 복잡한 미국 세무 처리 및 비미국 투자자 대상 30% 원천징수 가능성; 7) 투자자는 Citigroup 신용 위험 부담.
대상 투자자. 주식 지수 변동성, 발행자 신용 위험, 원금 손실 가능성을 감수하고 두 자릿수 조건부 수익을 추구하는 고급 소득 지향 투자자.
Citigroup Global Markets Holdings Inc. (garanti par Citigroup Inc.) commercialise une note structurée senior non garantie – "Callable Contingent Coupon Equity-Linked Securities" – qui référence la moins bonne performance parmi trois sous-jacents : l’indice Nasdaq-100, l’indice Russell 2000 et le fonds Utilities Select Sector SPDR (ticker XLU). Les notes seront émises à 1 000 $ de valeur nominale le 23 juillet 2025 et, sauf remboursement anticipé, arriveront à échéance le 22 avril 2027.
Mécanique du coupon. À chaque date d’évaluation mensuelle, la note verse un coupon conditionnel d’au moins 0,9583 % (environ 11,50 % par an) seulement si le sous-jacent le moins performant clôture à ou au-dessus de 70 % de son niveau initial (la "barrière du coupon"). Si le sous-jacent le moins performant clôture en dessous de ce seuil, l’investisseur ne perçoit pas ce coupon. Les coupons ne sont donc ni fixes ni cumulés.
Option de remboursement anticipé de l’émetteur. Citigroup peut rembourser intégralement les notes à l’une des 18 dates potentielles de rachat prévues à partir du 20 octobre 2025. En cas de remboursement anticipé, les détenteurs reçoivent la valeur nominale plus tout coupon dû, mettant fin au potentiel de rendement élevé et exposant les investisseurs au risque de réinvestissement.
Remboursement du principal. À l’échéance, si les notes n’ont pas été rappelées et que le sous-jacent le moins performant est ≥ 70 % de sa valeur initiale (la "barrière finale"), les investisseurs reçoivent la valeur nominale plus le coupon final (le cas échéant). Si le sous-jacent le moins performant clôture < 70 %, le principal est remboursé au prorata de la perte du sous-jacent ; une baisse de 30 % à 100 % entraîne une perte correspondante du principal, sans plancher.
Conditions économiques et frais. Le prix d’émission est de 1 000 $ ; la valeur estimée à la date de tarification devrait être ≥ 936,50 $, impliquant environ 6,35 % de coûts initiaux intégrés (commission de souscription jusqu’à 6,50 $ plus coûts de structuration/couverture). Les notes ne seront pas cotées, et Citigroup (via CGMI) peut, mais n’est pas obligé, d’assurer un marché secondaire. Tous les paiements sont soumis au risque de crédit de Citigroup Global Markets Holdings Inc. et de sa société mère Citigroup Inc.
Principaux risques mis en avant. 1) Coupon conditionnel et non cumulatif ; 2) structure worst-of amplifiant le risque à la baisse ; 3) remboursement anticipé limitant le potentiel de revenu ; 4) liquidité probablement faible ; 5) valeur estimée inférieure au prix d’émission ; 6) traitement fiscal américain complexe et possible retenue à la source de 30 % pour les investisseurs non américains ; 7) les investisseurs supportent le risque de crédit de Citigroup.
Investisseur cible. Investisseurs sophistiqués orientés vers le revenu, à l’aise avec la volatilité des indices boursiers, le risque de crédit de l’émetteur et la possibilité de perdre le capital en échange d’un rendement conditionnel à deux chiffres.
Citigroup Global Markets Holdings Inc. (garantiert durch Citigroup Inc.) bietet eine unbesicherte, vorrangige strukturierte Anleihe an – "Callable Contingent Coupon Equity-Linked Securities" – die sich auf den schlechtesten Performer von drei Basiswerten bezieht: den Nasdaq-100 Index, den Russell 2000 Index und den Utilities Select Sector SPDR Fund (Ticker XLU). Die Anleihen werden am 23. Juli 2025 zum Nennwert von 1.000 $ ausgegeben und laufen, sofern sie nicht vorzeitig zurückgerufen werden, bis zum 22. April 2027.
Coupon-Mechanik. An jedem monatlichen Bewertungstag zahlt die Anleihe einen bedingten Coupon von mindestens 0,9583 % (ca. 11,50 % p.a.) nur wenn der schlechteste Basiswert bei oder über 70 % seines Anfangswerts schließt (die "Coupon-Barriere"). Schließt der schlechteste Basiswert unter diesem Schwellenwert, entfällt der Coupon. Die Coupons sind daher weder fest noch kumulativ.
Emittenten-Kündigungsrecht. Citigroup kann die Anleihen an einem von 18 geplanten möglichen Rückzahlungsterminen ab dem 20. Oktober 2025 vollständig zurückzahlen. Im Falle einer Kündigung erhalten die Inhaber den Nennwert plus fällige Coupons, womit das weitere Aufwärtspotenzial durch die hohe Rendite endet und Anleger dem Reinvestitionsrisiko ausgesetzt sind.
Rückzahlung des Kapitals. Bei Fälligkeit, sofern die Anleihen nicht zurückgerufen wurden und der schlechteste Basiswert ≥ 70 % seines Anfangswerts schließt (die "Endbarriere"), erhalten Anleger den Nennwert plus den letzten Coupon (sofern verdient). Schließt der schlechteste Basiswert unter 70 %, wird das Kapital anteilig entsprechend dem Verlust des Basiswerts zurückgezahlt; ein Rückgang von 30 %–100 % führt zu einem Verlust von 30 %–100 % des Kapitals, ohne Untergrenze.
Wirtschaftliche Bedingungen & Gebühren. Der Ausgabepreis beträgt 1.000 $; der geschätzte Wert am Preisfeststellungstag wird voraussichtlich ≥ 936,50 $ sein, was etwa 6,35 % eingebettete Vorabkosten (Underwriting-Gebühr bis zu 6,50 $ plus Strukturierungs-/Hedging-Kosten) impliziert. Die Anleihen werden nicht notiert, und Citigroup (über CGMI) kann, ist aber nicht verpflichtet, einen Sekundärmarkt stellen. Alle Zahlungen unterliegen dem Kreditrisiko von Citigroup Global Markets Holdings Inc. und dessen Muttergesellschaft Citigroup Inc.
Hervorgehobene Hauptrisiken. 1) Bedingter und nicht kumulativer Coupon; 2) Worst-of-Struktur verstärkt Abwärtsrisiko; 3) Vorzeitige Kündigung begrenzt Einkommenspotenzial; 4) Wahrscheinlich geringe Liquidität; 5) Geschätzter Wert unter Ausgabepreis; 6) Komplexe US-Steuerbehandlung und mögliche 30% Quellensteuer für Nicht-US-Investoren; 7) Anleger tragen Citigroup-Kreditrisiko.
Zielinvestor. Anspruchsvolle einkommensorientierte Anleger, die mit der Volatilität von Aktienindizes, Emittenten-Kreditrisiko und der Möglichkeit eines Kapitalverlusts zugunsten einer zweistelligen bedingten Rendite umgehen können.
 |
Registration Statement No. 333-275898 Filed Pursuant to Rule 424(b)(2) |
| The information in this preliminary pricing supplement is not complete and may be changed. | |
| | | |
|
Preliminary Pricing Supplement Subject to Completion: Dated July 10, 2025 Pricing Supplement dated July __, 2025 to the Prospectus dated December 20, 2023, the Prospectus Supplement dated December 20, 2023 and the Product Supplement No. 1A dated May 16, 2024 |
|
$ Royal Bank of Canada |
| | | |
Royal Bank of Canada is offering Auto-Callable Enhanced Return Dual Directional Barrier Notes (the “Notes”) linked to the performance of the common stock of NVIDIA Corporation (the “Underlier”).
| · | Call Feature — If, on the Call Observation Date, the closing value of the Underlier is greater than or equal to the Initial Underlier Value, the Notes will be automatically called for a return of at least 17.50% (to be determined on the Trade Date). No further payments will be made on the Notes. |
| · | Enhanced Return Potential — If the Notes are not automatically called and the Final Underlier Value is greater than the Initial Underlier Value, at maturity, investors will receive a return equal to 110% of the Underlier Return. |
| · | Absolute Value Return — If the Notes are not automatically called and the Final Underlier Value is less than or equal to the Initial Underlier Value, but is greater than or equal to the Barrier Value (60% of the Initial Underlier Value), at maturity, investors will receive a one-for-one positive return equal to the absolute value of the Underlier Return. |
| · | Principal at Risk — If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, at maturity, investors will lose 1% of the principal amount of their Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value. |
| · | The Notes do not pay interest. |
| · | Any payments on the Notes are subject to our credit risk. |
| · | The Notes will not be listed on any securities exchange. |
CUSIP: 78017PEZ0
Investing in the Notes involves a number of risks. See “Selected Risk Considerations” beginning on page P-7 of this pricing supplement and “Risk Factors” in the accompanying prospectus, prospectus supplement and product supplement.
None of the Securities and Exchange Commission (the “SEC”), any state securities commission or any other regulatory body has approved or disapproved of the Notes or passed upon the adequacy or accuracy of this pricing supplement. Any representation to the contrary is a criminal offense. The Notes will not constitute deposits insured by the Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance Corporation or any other Canadian or U.S. governmental agency or instrumentality. The Notes are not bail-inable notes and are not subject to conversion into our common shares under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act.
| |
Per Note |
Total |
| Price to public(1) | 100.00% | $ |
| Underwriting discounts and commissions(1) |
2.50% |
$ |
| Proceeds to Royal Bank of Canada | 97.50% | $ |
(1) We or one of our affiliates may pay varying selling concessions of up to $25.00 per $1,000 principal amount of Notes in connection with the distribution of the Notes to other registered broker-dealers. Certain dealers who purchase the Notes for sale to certain fee-based advisory accounts may forgo some or all of their underwriting discount or selling concessions. The public offering price for investors purchasing the Notes in these accounts may be between $975.00 and $1,000.00 per $1,000 principal amount of Notes. See “Supplemental Plan of Distribution (Conflicts of Interest)” below.
The initial estimated value of the Notes determined by us as of the Trade Date, which we refer to as the initial estimated value, is expected to be between $916.00 and $966.00 per $1,000 principal amount of Notes and will be less than the public offering price of the Notes. The final pricing supplement relating to the Notes will set forth the initial estimated value. The market value of the Notes at any time will reflect many factors, cannot be predicted with accuracy and may be less than this amount. We describe the determination of the initial estimated value in more detail below.
RBC Capital Markets, LLC
| | |
| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
KEY TERMS
The information in this “Key Terms” section is qualified by any more detailed information set forth in this pricing supplement and in the accompanying prospectus, prospectus supplement and product supplement.
| Issuer: | Royal Bank of Canada | ||
| Underwriter: | RBC Capital Markets, LLC (“RBCCM”) | ||
| Minimum Investment: | $1,000 and minimum denominations of $1,000 in excess thereof | ||
| Underlier: | The common stock of NVIDIA Corporation | ||
| | Bloomberg Ticker | Initial Underlier Value(1) | Barrier Value(2) |
| | NVDA UW | $ | $ |
| | (1) The closing value of the Underlier on the Trade Date | ||
| | (2) 60% of the Initial Underlier Value (rounded to two decimal places) | ||
| Trade Date: | July 29, 2025 | ||
| Issue Date: | July 31, 2025 | ||
| Valuation Date:* | July 31, 2028 | ||
| Maturity Date:* | August 3, 2028 | ||
| Call Feature: | If, on the Call Observation Date, the closing value of the Underlier is greater than or equal to the Initial Underlier Value, the Notes will be automatically called. Under these circumstances, investors will receive on the Call Settlement Date per $1,000 principal amount of Notes an amount equal to at least $1,175 (at least 117.50% of the principal amount), to be determined on the Trade Date. No further payments will be made on the Notes. | ||
| Payment at Maturity: |
If the Notes are not automatically called, investors will receive on the Maturity Date per $1,000 principal amount of Notes: · If the Final Underlier Value is greater than the Initial Underlier Value, an amount equal to: $1,000 + ($1,000 × Underlier Return × Participation Rate) · If the Final Underlier Value is less than or equal to the Initial Underlier Value, but is greater than or equal to the Barrier Value, an amount equal to: $1,000 + (-1 × $1,000 × Underlier Return) In this case, you will receive a positive return on the Notes equal to the absolute value of the Underlier Return, even though the Underlier Return is negative. In no event will this return exceed 40%. · If the Final Underlier Value is less than the Barrier Value, an amount equal to: $1,000 + ($1,000 × Underlier Return) If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, you will lose a substantial portion or all of your principal amount at maturity. All payments on the Notes are subject to our credit risk. | ||
| Participation Rate: | 110% (applicable only at maturity if the Notes are not automatically called) | ||
| Underlier Return: |
The Underlier Return, expressed as a percentage, is calculated using the following formula: Final Underlier Value – Initial Underlier
Value | ||
| P-2 | RBC Capital Markets, LLC |
| | |
| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
| Final Underlier Value: | The closing value of the Underlier on the Valuation Date |
| Call Observation Date:* | August 4, 2026 |
| Call Settlement Date:* | August 7, 2026 |
| Calculation Agent: | RBCCM |
* Subject to postponement. See “General Terms of the Notes—Postponement of a Determination Date” and “General Terms of the Notes—Postponement of a Payment Date” in the accompanying product supplement.
| P-3 | RBC Capital Markets, LLC |
| | |
| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
ADDITIONAL TERMS OF YOUR NOTES
You should read this pricing supplement together with the prospectus dated December 20, 2023, as supplemented by the prospectus supplement dated December 20, 2023, relating to our Senior Global Medium-Term Notes, Series J, of which the Notes are a part, and the product supplement no. 1A dated May 16, 2024. This pricing supplement, together with these documents, contains the terms of the Notes and supersedes all other prior or contemporaneous oral statements as well as any other written materials, including preliminary or indicative pricing terms, correspondence, trade ideas, structures for implementation, sample structures, fact sheets, brochures or other educational materials of ours.
We have not authorized anyone to provide any information or to make any representations other than those contained or incorporated by reference in this pricing supplement and the documents listed below. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. These documents are an offer to sell only the Notes offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in each such document is current only as of its date.
If the information in this pricing supplement differs from the information contained in the documents listed below, you should rely on the information in this pricing supplement.
You should carefully consider, among other things, the matters set forth in “Selected Risk Considerations” in this pricing supplement and “Risk Factors” in the documents listed below, as the Notes involve risks not associated with conventional debt securities. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes.
You may access these documents on the SEC website at www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website):
| · | Prospectus dated December 20, 2023: |
https://www.sec.gov/Archives/edgar/data/1000275/000119312523299520/d645671d424b3.htm
| · | Prospectus Supplement dated December 20, 2023: |
https://www.sec.gov/Archives/edgar/data/1000275/000119312523299523/d638227d424b3.htm
| · | Product Supplement No. 1A dated May 16, 2024: |
https://www.sec.gov/Archives/edgar/data/1000275/000095010324006777/dp211286_424b2-ps1a.htm
Our Central Index Key, or CIK, on the SEC website is 1000275. As used in this pricing supplement, “Royal Bank of Canada,” the “Bank,” “we,” “our” and “us” mean only Royal Bank of Canada.
| P-4 | RBC Capital Markets, LLC |
| | |
| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
HYPOTHETICAL RETURNS
The table and examples set forth below illustrate hypothetical payments at maturity for hypothetical performance of the Underlier, based on the Barrier Value of 60% of the Initial Underlier Value and the Participation Rate of 110%. The table and examples below also assume that the Notes are not automatically called. The table and examples are only for illustrative purposes and may not show the actual return applicable to investors.
| Hypothetical Underlier Return | Payment at Maturity per $1,000 Principal Amount of Notes | Payment at Maturity as Percentage of Principal Amount |
| 50.00% | $1,550.00 | 155.000% |
| 40.00% | $1,440.00 | 144.000% |
| 30.00% | $1,330.00 | 133.000% |
| 20.00% | $1,220.00 | 122.000% |
| 10.00% | $1,110.00 | 111.000% |
| 5.00% | $1,055.00 | 105.500% |
| 2.00% | $1,022.00 | 102.200% |
| 0.00% | $1,000.00 | 100.000% |
| -5.00% | $1,050.00 | 105.000% |
| -10.00% | $1,100.00 | 110.000% |
| -20.00% | $1,200.00 | 120.000% |
| -30.00% | $1,300.00 | 130.000% |
| -40.00% | $1,400.00 | 140.000% |
| -40.01% | $599.90 | 59.990% |
| -50.00% | $500.00 | 50.000% |
| -60.00% | $400.00 | 40.000% |
| -70.00% | $300.00 | 30.000% |
| -80.00% | $200.00 | 20.000% |
| -90.00% | $100.00 | 10.000% |
| -100.00% | $0.00 | 0.000% |
| Example 1 — | The value of the Underlier increases from the Initial Underlier Value to the Final Underlier Value by 2%. | |
| | Underlier Return: | 2% |
| | Payment at Maturity: | $1,000 + ($1,000 × 2% × 110%) = $1,000 + $22 = $1,022 |
| |
In this example, the payment at maturity is $1,022 per $1,000 principal amount of Notes, for a return of 2.20%. Because the Final Underlier Value is greater than the Initial Underlier Value, investors receive a return equal to 110% of the Underlier Return. | |
| P-5 | RBC Capital Markets, LLC |
| | |
| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
| Example 2 — | The value of the Underlier decreases from the Initial Underlier Value to the Final Underlier Value by 10% (i.e., the Final Underlier Value is below the Initial Underlier Value but above the Barrier Value). | |
| | Underlier Return: | -10% |
| | Payment at Maturity: | $1,000 + (-1 × $1,000 × -10%) = $1,000 + $100 = $1,100 |
| |
In this example, the payment at maturity is $1,100 per $1,000 principal amount of Notes, for a return of 10%. Because the Final Underlier Value is less than the Initial Underlier Value but greater than or equal to the Barrier Value, even though the Underlier Return is negative, investors receive a positive return equal to the absolute value of the Underlier Return. | |
| Example 3 — | The value of the Underlier decreases from the Initial Underlier Value to the Final Underlier Value by 50% (i.e., the Final Underlier Value is below the Barrier Value). | |
| | Underlier Return: | -50% |
| | Payment at Maturity: | $1,000 + ($1,000 × -50%) = $1,000 – $500 = $500 |
| |
In this example, the payment at maturity is $500 per $1,000 principal amount of Notes, representing a loss of 50% of the principal amount. Because the Final Underlier Value is less than the Barrier Value, investors do not receive a full return of the principal amount of their Notes. | |
Investors in the Notes could lose a substantial portion or all of the principal amount of their Notes at maturity. The table and examples above assume that the Notes are not automatically called. However, if the Notes are automatically called, investors will not receive any further payments after the Call Settlement Date.
| P-6 | RBC Capital Markets, LLC |
| | |
| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
SELECTED RISK CONSIDERATIONS
An investment in the Notes involves significant risks. We urge you to consult your investment, legal, tax, accounting and other advisers before you invest in the Notes. Some of the risks that apply to an investment in the Notes are summarized below, but we urge you to read also the “Risk Factors” sections of the accompanying prospectus, prospectus supplement and product supplement. You should not purchase the Notes unless you understand and can bear the risks of investing in the Notes.
Risks Relating to the Terms and Structure of the Notes
| · | You May Lose a Portion or All of the Principal Amount at Maturity — If the Notes are not automatically called and the Final Underlier Value is less than the Barrier Value, you will lose 1% of the principal amount of your Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value. You could lose a substantial portion or all of your principal amount at maturity. |
| · | Your Potential Payment If the Notes Are Automatically Called Is Limited — If the Notes are automatically called, the payment upon automatic call will be a fixed amount, regardless of any appreciation in the value of the Underlier, which may be significant. Accordingly, your return on the Notes may be less than your return would be if you made an investment in a security directly linked to the positive performance of the Underlier. |
| · | Your Potential for a Positive Return from Depreciation of the Underlier Is Limited — The absolute value return feature applies only if the Final Underlier Value is less than the Initial Underlier Value but greater than or equal to the Barrier Value. Thus, any return potential of the Notes in the event that the Final Underlier Value is less than the Initial Underlier Value is limited by the Barrier Value. Any decline in the Final Underlier Value below the Barrier Value will result in a loss, rather than a positive return, on the Notes. |
| · | The Notes Do Not Pay Interest, and Your Return on the Notes May Be Lower Than the Return on a Conventional Debt Security of Comparable Maturity — There will be no periodic interest payments on the Notes as there would be on a conventional fixed-rate or floating-rate debt security having the same maturity. The return that you will receive on the Notes, which could be negative, may be less than the return you could earn on other investments. Even if your return is positive, your return may be less than the return you would earn if you purchased one of our conventional senior interest-bearing debt securities. |
| · | The Notes Are Subject to an Automatic Call — If, on the Call Observation Date, the closing value of the Underlier is greater than or equal to the Initial Underlier Value, the Notes will be automatically called, and you will not receive any further payments on the Notes. You may be unable to reinvest your proceeds from the automatic call in an investment with a return that is as high as the return on the Notes would have been if they had not been called. |
| · | Payments on the Notes Are Subject to Our Credit Risk, and Market Perceptions about Our Creditworthiness May Adversely Affect the Market Value of the Notes — The Notes are our senior unsecured debt securities, and your receipt of any amounts due on the Notes is dependent upon our ability to pay our obligations as they come due. If we were to default on our payment obligations, you may not receive any amounts owed to you under the Notes and you could lose your entire investment. In addition, any negative changes in market perceptions about our creditworthiness may adversely affect the market value of the Notes. |
| · | Any Payment on the Notes Will Be Determined Based on the Closing Values of the Underlier on the Dates Specified — Any payment on the Notes will be determined based on the closing values of the Underlier on the dates specified. You will not benefit from any more favorable value of the Underlier determined at any other time. |
| · | The U.S. Federal Income Tax Consequences of an Investment in the Notes Are Uncertain — There is no direct legal authority regarding the proper U.S. federal income tax treatment of the Notes, and significant aspects of the tax treatment of the Notes are uncertain. You should review carefully the section entitled “United States Federal Income Tax Considerations” herein, in combination with the section entitled “United States Federal Income Tax Considerations” |
| P-7 | RBC Capital Markets, LLC |
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| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
in the accompanying product supplement, and consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the Notes.
Risks Relating to the Initial Estimated Value of the Notes and the Secondary Market for the Notes
| · | There May Not Be an Active Trading Market for the Notes; Sales in the Secondary Market May Result in Significant Losses — There may be little or no secondary market for the Notes. The Notes will not be listed on any securities exchange. RBCCM and our other affiliates may make a market for the Notes; however, they are not required to do so and, if they choose to do so, may stop any market-making activities at any time. Because other dealers are not likely to make a secondary market for the Notes, the price at which you may be able to trade your Notes is likely to depend on the price, if any, at which RBCCM or any of our other affiliates is willing to buy the Notes. Even if a secondary market for the Notes develops, it may not provide enough liquidity to allow you to easily trade or sell the Notes. We expect that transaction costs in any secondary market would be high. As a result, the difference between bid and ask prices for your Notes in any secondary market could be substantial. If you sell your Notes before maturity, you may have to do so at a substantial discount from the price that you paid for them, and as a result, you may suffer significant losses. The Notes are not designed to be short-term trading instruments. Accordingly, you should be able and willing to hold your Notes to maturity. |
| · | The Initial Estimated Value of the Notes Will Be Less Than the Public Offering Price — The initial estimated value of the Notes will be less than the public offering price of the Notes and does not represent a minimum price at which we, RBCCM or any of our other affiliates would be willing to purchase the Notes in any secondary market (if any exists) at any time. If you attempt to sell the Notes prior to maturity, their market value may be lower than the price you paid for them and the initial estimated value. This is due to, among other things, changes in the value of the Underlier, the internal funding rate we pay to issue securities of this kind (which is lower than the rate at which we borrow funds by issuing conventional fixed rate debt) and the inclusion in the public offering price of the underwriting discount, our estimated profit and the estimated costs relating to our hedging of the Notes. These factors, together with various credit, market and economic factors over the term of the Notes, are expected to reduce the price at which you may be able to sell the Notes in any secondary market and will affect the value of the Notes in complex and unpredictable ways. Assuming no change in market conditions or any other relevant factors, the price, if any, at which you may be able to sell your Notes prior to maturity may be less than your original purchase price, as any such sale price would not be expected to include the underwriting discount, our estimated profit or the hedging costs relating to the Notes. In addition, any price at which you may sell the Notes is likely to reflect customary bid-ask spreads for similar trades. In addition to bid-ask spreads, the value of the Notes determined for any secondary market price is expected to be based on a secondary market rate rather than the internal funding rate used to price the Notes and determine the initial estimated value. As a result, the secondary market price will be less than if the internal funding rate were used. |
| · | The Initial Estimated Value of the Notes Is Only an Estimate, Calculated as of the Trade Date — The initial estimated value of the Notes is based on the value of our obligation to make the payments on the Notes, together with the mid-market value of the derivative embedded in the terms of the Notes. See “Structuring the Notes” below. Our estimate is based on a variety of assumptions, including our internal funding rate (which represents a discount from our credit spreads), expectations as to dividends, interest rates and volatility and the expected term of the Notes. These assumptions are based on certain forecasts about future events, which may prove to be incorrect. Other entities may value the Notes or similar securities at a price that is significantly different than we do. |
The value of the Notes at any time after the Trade Date will vary based on many factors, including changes in market conditions, and cannot be predicted with accuracy. As a result, the actual value you would receive if you sold the Notes in any secondary market, if any, should be expected to differ materially from the initial estimated value of the Notes.
Risks Relating to Conflicts of Interest and Our Trading Activities
| · | Our and Our Affiliates’ Business and Trading Activities May Create Conflicts of Interest — You should make your own independent investigation of the merits of investing in the Notes. Our and our affiliates’ economic interests are potentially adverse to your interests as an investor in the Notes due to our and our affiliates’ business and trading activities, and we and our affiliates have no obligation to consider your interests in taking any actions that might affect |
| P-8 | RBC Capital Markets, LLC |
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| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
the value of the Notes. Trading by us and our affiliates may adversely affect the value of the Underlier and the market value of the Notes. See “Risk Factors—Risks Relating to Conflicts of Interest” in the accompanying product supplement.
| · | RBCCM’s Role as Calculation Agent May Create Conflicts of Interest — As Calculation Agent, our affiliate, RBCCM, will determine any values of the Underlier and make any other determinations necessary to calculate any payments on the Notes. In making these determinations, the Calculation Agent may be required to make discretionary judgments, including those described under “—Risks Relating to the Underlier” below. In making these discretionary judgments, the economic interests of the Calculation Agent are potentially adverse to your interests as an investor in the Notes, and any of these determinations may adversely affect any payments on the Notes. The Calculation Agent will have no obligation to consider your interests as an investor in the Notes in making any determinations with respect to the Notes. |
Risks Relating to the Underlier
| · | You Will Not Have Any Rights to the Underlier — As an investor in the Notes, you will not have voting rights or rights to receive dividends or other distributions or any other rights with respect to the Underlier. |
| · | Any Payment on the Notes May Be Postponed and Adversely Affected by the Occurrence of a Market Disruption Event — The timing and amount of any payment on the Notes is subject to adjustment upon the occurrence of a market disruption event affecting the Underlier. If a market disruption event persists for a sustained period, the Calculation Agent may make a discretionary determination of the closing value of the Underlier. See “General Terms of the Notes—Reference Stocks and Funds—Market Disruption Events,” “General Terms of the Notes—Postponement of a Determination Date” and “General Terms of the Notes—Postponement of a Payment Date” in the accompanying product supplement. |
| · | Anti-dilution Protection Is Limited, and the Calculation Agent Has Discretion to Make Anti-dilution Adjustments — The Calculation Agent may in its sole discretion make adjustments affecting any amounts payable on the Notes upon the occurrence of certain corporate events (such as stock splits or extraordinary or special dividends) that the Calculation Agent determines have a diluting or concentrative effect on the theoretical value of the Underlier. However, the Calculation Agent might not make adjustments in response to all such events that could affect the Underlier. The occurrence of any such event and any adjustment made by the Calculation Agent (or a determination by the Calculation Agent not to make any adjustment) may adversely affect the market price of, and any amounts payable on, the Notes. See “General Terms of the Notes—Reference Stocks and Funds—Anti-dilution Adjustments” in the accompanying product supplement. |
| · | Reorganization or Other Events Could Adversely Affect the Value of the Notes or Result in the Notes Being Accelerated — Upon the occurrence of certain reorganization or other events affecting the Underlier, the Calculation Agent may make adjustments that result in payments on the Notes being based on the performance of (i) cash, securities of another issuer and/or other property distributed to holders of the Underlier upon the occurrence of that event or (ii) in the case of a reorganization event in which only cash is distributed to holders of the Underlier, a substitute security, if the Calculation Agent elects to select one. Any of these actions could adversely affect the value of the Underlier and, consequently, the value of the Notes. Alternatively, the Calculation Agent may accelerate the Maturity Date for a payment determined by the Calculation Agent. Any amount payable upon acceleration could be significantly less than any amount that would be due on the Notes if they were not accelerated. However, if the Calculation Agent elects not to accelerate the Notes, the value of, and any amount payable on, the Notes could be adversely affected, perhaps significantly. See “General Terms of the Notes—Reference Stocks and Funds—Anti-dilution Adjustments—Reorganization Events” in the accompanying product supplement. |
| P-9 | RBC Capital Markets, LLC |
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| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
INFORMATION REGARDING THE UNDERLIER
The Underlier is registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Companies with securities registered under the Exchange Act are required to file financial and other information specified by the SEC periodically. Information provided to or filed with the SEC by the issuer of the Underlier can be located on a website maintained by the SEC at https://www.sec.gov by reference to that issuer’s SEC file number provided below. Information from outside sources is not incorporated by reference in, and should not be considered part of, this pricing supplement. We have not independently verified the accuracy or completeness of the information contained in outside sources.
According to publicly available information, NVIDIA Corporation is a full-stack computing infrastructure company with data-center-scale offerings whose full-stack includes the CUDA programming model that runs on all of its graphics processing units (GPUs), as well as domain-specific software libraries, software development kits and Application Programming Interfaces.
The issuer of the Underlier’s SEC file number is 000-23985. The Underlier is listed on The Nasdaq Stock Market under the ticker symbol “NVDA.”
Historical Information
The following graph sets forth historical closing values of the Underlier for the period from January 1, 2015 to July 8, 2025. The red line represents a hypothetical Barrier Value based on the closing value of the Underlier on July 8, 2025. We obtained the information in the graph from Bloomberg Financial Markets, without independent investigation. We cannot give you assurance that the performance of the Underlier will result in the return of all of your initial investment.
Common Stock of NVIDIA Corporation
PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.
| P-10 | RBC Capital Markets, LLC |
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| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS
You should review carefully the section in the accompanying product supplement entitled “United States Federal Income Tax Considerations.” The following discussion, when read in combination with that section, constitutes the full opinion of our counsel, Davis Polk & Wardwell LLP, regarding the material U.S. federal income tax consequences of owning and disposing of the Notes.
Generally, this discussion assumes that you purchased the Notes for cash in the original issuance at the stated issue price and does not address other circumstances specific to you, including consequences that may arise due to any other investments relating to the Underlier. You should consult your tax adviser regarding the effect any such circumstances may have on the U.S. federal income tax consequences of your ownership of a Note.
In the opinion of our counsel, which is based on current market conditions, it is reasonable to treat the Notes for U.S. federal income tax purposes as prepaid financial contracts that are “open transactions,” as described in the section entitled “United States Federal Income Tax Considerations—Tax Consequences to U.S. Holders—Notes Treated as Prepaid Financial Contracts that are Open Transactions” in the accompanying product supplement. There is uncertainty regarding this treatment, and the Internal Revenue Service (the “IRS”) or a court might not agree with it. Moreover, because this treatment of the Notes and our counsel’s opinion are based on market conditions as of the date of this preliminary pricing supplement, each is subject to confirmation on the Trade Date. A different tax treatment could be adverse to you. Generally, if this treatment is respected, (i) you should not recognize taxable income or loss prior to the taxable disposition of your Notes (including upon maturity or an earlier redemption, if applicable) and (ii) the gain or loss on your Notes should be treated as short-term capital gain or loss unless you have held the Notes for more than one year, in which case your gain or loss should be treated as long-term capital gain or loss.
We do not plan to request a ruling from the IRS regarding the treatment of the Notes. An alternative characterization of the Notes could materially and adversely affect the tax consequences of ownership and disposition of the Notes, including the timing and character of income recognized. 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 Notes, possibly with retroactive effect.
Non-U.S. Holders. As discussed under “United States Federal Income Tax Considerations—Tax Consequences to Non-U.S. Holders—Dividend Equivalents under Section 871(m) of the Code” in the accompanying product supplement, Section 871(m) of the Internal Revenue 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 or indices that include U.S. equities. The Treasury 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 certain determinations made by us, we expect that Section 871(m) will not apply to the Notes with regard to Non-U.S. Holders. Our determination is not binding on the IRS, and the IRS may disagree with this determination. If necessary, further information regarding the potential application of Section 871(m) will be provided in the final pricing supplement for the Notes.
We will not be required to pay any additional amounts with respect to U.S. federal withholding taxes.
You should consult your tax adviser regarding the U.S. federal income tax consequences of an investment in the Notes, including possible alternative treatments, as well as tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.
| P-11 | RBC Capital Markets, LLC |
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| | Auto-Callable Enhanced Return Dual Directional Barrier Notes Linked to the Common Stock of NVIDIA Corporation |
SUPPLEMENTAL PLAN OF DISTRIBUTION (CONFLICTS OF INTEREST)
The Notes are offered initially to investors at a purchase price equal to par, except with respect to certain accounts as indicated on the cover page of this pricing supplement. We or one of our affiliates may pay the underwriting discount as set forth on the cover page of this pricing supplement.
The value of the Notes shown on your account statement may be based on RBCCM’s estimate of the value of the Notes if RBCCM or another of our affiliates were to make a market in the Notes (which it is not obligated to do). That estimate will be based on the price that RBCCM may pay for the Notes in light of then-prevailing market conditions, our creditworthiness and transaction costs. For a period of approximately nine months after the Issue Date, the value of the Notes that may be shown on your account statement may be higher than RBCCM’s estimated value of the Notes at that time. This is because the estimated value of the Notes will not include the underwriting discount or our hedging costs and profits; however, the value of the Notes shown on your account statement during that period may initially be a higher amount, reflecting the addition of the underwriting discount and our estimated costs and profits from hedging the Notes. This excess is expected to decrease over time until the end of this period. After this period, if RBCCM repurchases your Notes, it expects to do so at prices that reflect their estimated value.
RBCCM or another of its affiliates or agents may use this pricing supplement in the initial sale of the Notes. In addition, RBCCM or another of our affiliates may use this pricing supplement in a market-making transaction in the Notes after their initial sale. Unless we or our agent informs the purchaser otherwise in the confirmation of sale, this pricing supplement is being used in a market-making transaction.
For additional information about the settlement cycle of the Notes, see “Plan of Distribution” in the accompanying prospectus. For additional information as to the relationship between us and RBCCM, see the section “Plan of Distribution—Conflicts of Interest” in the accompanying prospectus.
STRUCTURING THE NOTES
The Notes are our debt securities. As is the case for all of our debt securities, including our structured notes, the economic terms of the Notes reflect our actual or perceived creditworthiness. In addition, because structured notes result in increased operational, funding and liability management costs to us, we typically borrow the funds under structured notes at a rate that is lower than the rate that we might pay for a conventional fixed or floating rate debt security of comparable maturity. The lower internal funding rate, the underwriting discount and the hedging-related costs relating to the Notes reduce the economic terms of the Notes to you and result in the initial estimated value for the Notes being less than their public offering price. Unlike the initial estimated value, any value of the Notes determined for purposes of a secondary market transaction may be based on a secondary market rate, which may result in a lower value for the Notes than if our initial internal funding rate were used.
In order to satisfy our payment obligations under the Notes, we may choose to enter into certain hedging arrangements (which may include call options, put options or other derivatives) with RBCCM and/or one of our other subsidiaries. The terms of these hedging arrangements take into account a number of factors, including our creditworthiness, interest rate movements, volatility and the tenor of the Notes. The economic terms of the Notes and the initial estimated value depend in part on the terms of these hedging arrangements.
See “Selected Risk Considerations—Risks Relating to the Initial Estimated Value of the Notes and the Secondary Market for the Notes—The Initial Estimated Value of the Notes Will Be Less Than the Public Offering Price” above.
| P-12 | RBC Capital Markets, LLC |
FAQ
What is the contingent coupon rate on Citigroup's (C) 2025 equity-linked securities?
How much principal protection do the notes offer?
When can Citigroup call these notes?
Are the notes listed on an exchange?
Why is the estimated value ($≈936.50) lower than the $1,000 issue price?
What credit exposure does an investor assume?
