STOCK TITAN

[424B2] MicroSectors Energy 3x Leveraged ETNs Prospectus Supplement

Filing Impact
(Low)
Filing Sentiment
(Neutral)
Form Type
424B2
Rhea-AI Filing Summary

Citigroup Global Markets Holdings Inc., guaranteed by Citigroup Inc., is offering 1.5-year Market-Linked Securities tied to the Citi Dynamic Asset Selector 5 Excess Return Index (CIISDA5N). Each $1,000 note returns principal at maturity plus an upside payment only if the Index appreciates from the July 31, 2025 pricing date to the February 1, 2027 valuation date. The upside participation rate is at least 175%; therefore a 25% Index gain would generate a 43.75% security return ($1,437.50). If the Index is flat or lower, investors receive only the principal—no downside participation but also no periodic interest.

Key terms include: unsecured senior obligation; credit exposure to both Citigroup Global Markets Holdings Inc. and Citigroup Inc.; no listing on any exchange; and an estimated value on the pricing date below the issue price. The underlying index uses a rules-based trend and volatility framework allocating between S&P 500 futures and 10-year U.S. Treasury futures, targets 5% volatility, deducts a 0.85% annual index fee, and has operated since June 13, 2016. Material risks highlighted include potential zero return, secondary-market illiquidity, index methodology limitations, and financing-cost drag on futures-based constituents.

Citigroup Global Markets Holdings Inc., garantita da Citigroup Inc., offre titoli Market-Linked della durata di 1,5 anni collegati all'Indice Citi Dynamic Asset Selector 5 Excess Return (CIISDA5N). Ogni titolo da $1.000 restituisce il capitale a scadenza più un pagamento aggiuntivo solo se l'Indice registra un apprezzamento dal prezzo del 31 luglio 2025 alla valutazione del 1° febbraio 2027. Il tasso di partecipazione all’aumento è almeno del 175%; pertanto, un guadagno del 25% sull’Indice genererebbe un rendimento del titolo del 43,75% ($1.437,50). Se l’Indice resta stabile o scende, gli investitori ricevono solo il capitale investito—senza partecipazione al ribasso e senza interessi periodici.

I termini principali includono: obbligazione senior non garantita; esposizione creditizia sia a Citigroup Global Markets Holdings Inc. sia a Citigroup Inc.; nessuna quotazione in borsa; e un valore stimato alla data di prezzo inferiore al prezzo di emissione. L’indice sottostante utilizza un modello basato su regole di trend e volatilità, allocando tra futures sull’S&P 500 e futures su titoli di stato USA a 10 anni, con un target di volatilità del 5%, una commissione annua dell’indice dello 0,85% e in funzione dal 13 giugno 2016. I rischi principali evidenziati comprendono la possibilità di rendimento pari a zero, scarsa liquidità sul mercato secondario, limitazioni metodologiche dell’indice e l’impatto dei costi di finanziamento sui componenti basati sui futures.

Citigroup Global Markets Holdings Inc., garantizada por Citigroup Inc., ofrece valores Market-Linked a 1,5 años vinculados al Índice Citi Dynamic Asset Selector 5 Excess Return (CIISDA5N). Cada nota de $1,000 devuelve el principal al vencimiento más un pago adicional solo si el Índice se aprecia desde la fecha de precio del 31 de julio de 2025 hasta la fecha de valoración del 1 de febrero de 2027. La tasa de participación al alza es al menos del 175%; por lo tanto, una ganancia del 25% en el Índice generaría un rendimiento del 43,75% en el valor ($1,437.50). Si el Índice se mantiene estable o baja, los inversores solo reciben el principal—sin participación a la baja y sin intereses periódicos.

Los términos clave incluyen: obligación senior no garantizada; exposición crediticia tanto a Citigroup Global Markets Holdings Inc. como a Citigroup Inc.; sin cotización en ninguna bolsa; y un valor estimado en la fecha de precio inferior al precio de emisión. El índice subyacente utiliza un marco basado en reglas de tendencia y volatilidad, asignando entre futuros del S&P 500 y futuros del Tesoro estadounidense a 10 años, con un objetivo de volatilidad del 5%, una comisión anual del índice del 0,85% y está en funcionamiento desde el 13 de junio de 2016. Los riesgos materiales destacados incluyen la posibilidad de rendimiento cero, iliquidez en el mercado secundario, limitaciones metodológicas del índice y el impacto de los costos de financiamiento en los componentes basados en futuros.

Citigroup Global Markets Holdings Inc.는 Citigroup Inc.의 보증으로 Citi Dynamic Asset Selector 5 Excess Return Index (CIISDA5N)와 연계된 1.5년 만기 시장 연계 증권(Market-Linked Securities)을 제공합니다. 각 $1,000 어음은 2025년 7월 31일 가격 결정일에서 2027년 2월 1일 평가일까지 지수가 상승한 경우에만 만기 시 원금과 추가 수익을 지급합니다. 상승 참여율은 최소 175%로, 지수가 25% 상승하면 증권 수익률은 43.75%($1,437.50)가 됩니다. 지수가 변동 없거나 하락하면 투자자는 원금만 받으며—하락에 대한 손실 참여는 없고 정기 이자도 지급되지 않습니다.

주요 조건으로는 무담보 선순위 채무, Citigroup Global Markets Holdings Inc.와 Citigroup Inc.에 대한 신용 노출, 거래소 상장 없음, 그리고 가격 결정일 기준 발행 가격보다 낮은 추정 가치가 포함됩니다. 기초 지수는 규칙 기반 추세 및 변동성 프레임워크를 사용하여 S&P 500 선물과 10년 만기 미국 국채 선물 간에 자산을 배분하며, 5% 변동성 목표, 연 0.85% 지수 수수료를 공제하고 2016년 6월 13일부터 운영 중입니다. 주요 위험 요소는 무수익 가능성, 2차 시장 유동성 부족, 지수 방법론의 한계, 선물 기반 구성 요소의 자금 조달 비용 부담 등을 포함합니다.

Citigroup Global Markets Holdings Inc., garantie par Citigroup Inc., propose des titres Market-Linked d’une durée de 1,5 an liés à l'Indice Citi Dynamic Asset Selector 5 Excess Return (CIISDA5N). Chaque billet de 1 000 $ rembourse le principal à l’échéance plus un paiement supplémentaire uniquement si l’indice s’apprécie entre la date de tarification du 31 juillet 2025 et la date d’évaluation du 1er février 2027. Le taux de participation à la hausse est d’au moins 175% ; ainsi, une hausse de 25% de l’indice générerait un rendement de 43,75% sur le titre (1 437,50 $). Si l’indice reste stable ou baisse, les investisseurs ne reçoivent que le principal—pas de participation à la baisse ni d’intérêts périodiques.

Les termes clés incluent : obligation senior non garantie ; exposition au crédit de Citigroup Global Markets Holdings Inc. et Citigroup Inc. ; absence de cotation en bourse ; et une valeur estimée à la date de tarification inférieure au prix d’émission. L’indice sous-jacent utilise un cadre basé sur des règles de tendance et de volatilité, allouant entre les contrats à terme S&P 500 et les contrats à terme du Trésor américain à 10 ans, avec un objectif de volatilité de 5%, une commission annuelle de 0,85% déduite, et est en fonctionnement depuis le 13 juin 2016. Les risques importants soulignés incluent la possibilité d’un rendement nul, l’illiquidité sur le marché secondaire, les limites méthodologiques de l’indice et l’impact des coûts de financement sur les composantes basées sur les contrats à terme.

Citigroup Global Markets Holdings Inc., garantiert durch Citigroup Inc., bietet 1,5-jährige Marktgebundene Wertpapiere an, die an den Citi Dynamic Asset Selector 5 Excess Return Index (CIISDA5N) gekoppelt sind. Jede $1.000-Anleihe zahlt bei Fälligkeit das Kapital zurück plus eine Aufwärtszahlung nur, wenn der Index vom Preisstichtag 31. Juli 2025 bis zum Bewertungsdatum 1. Februar 2027 steigt. Die Aufwärtsbeteiligungsrate beträgt mindestens 175%; somit würde ein 25%iger Indexanstieg eine Rendite von 43,75% auf die Anleihe ($1.437,50) erzeugen. Bleibt der Index unverändert oder fällt, erhalten die Anleger nur das Kapital—keine Abwärtsbeteiligung und keine periodischen Zinsen.

Wichtige Bedingungen umfassen: unbesicherte vorrangige Verbindlichkeit; Kreditrisiko sowohl gegenüber Citigroup Global Markets Holdings Inc. als auch Citigroup Inc.; keine Börsennotierung; und ein geschätzter Wert am Preisstichtag unter dem Ausgabepreis. Der zugrunde liegende Index verwendet einen regelbasierten Trend- und Volatilitätsrahmen, der zwischen S&P 500-Futures und 10-jährigen US-Staatsanleihen-Futures allokiert, zielt auf 5% Volatilität ab, zieht eine jährliche Indexgebühr von 0,85% ab und ist seit dem 13. Juni 2016 in Betrieb. Wesentliche Risiken umfassen die Möglichkeit einer Nullrendite, Illiquidität am Sekundärmarkt, methodische Einschränkungen des Index und Finanzierungskostenbelastungen bei den auf Futures basierenden Komponenten.

Positive
  • Full principal protection at maturity regardless of Index performance.
  • High upside participation rate of at least 175%, enhancing gains if the Index rises.
  • Underlying index employs volatility targeting to control risk and diversify with Treasury futures.
Negative
  • Investors receive no interest payments during the 1.5-year term.
  • Zero return if the Index is flat or declines, despite time value of money.
  • Notes are unlisted and may be illiquid; early sales could incur losses.
  • Credit risk to Citigroup Global Markets Holdings Inc. and Citigroup Inc.
  • Estimated value on pricing date is below issue price, creating initial mark-to-market loss.
  • Index’s 0.85% fee and 5% volatility cap can limit upside performance.

Insights

TL;DR – Capital protected, high upside leverage, but zero coupon, illiquid and dependent on a complex trend-following index.

The offering provides full principal protection with leveraged upside (≥175%) on a short 1.5-year tenor, appealing to investors seeking equity exposure with downside insulation. However, the note monetises no income stream and values will trade at a discount because the issuer’s estimated value is below par. Return depends on a single observation date and a relatively new, futures-based index that caps participation through a 5% volatility target and 0.85% fee, potentially muting gains. Credit risk of Citigroup entities remains, and absence of listing could hinder exit prior to maturity. Overall, product characteristics are balanced—neither materially positive nor negative for investors or Citigroup’s financials.

Citigroup Global Markets Holdings Inc., garantita da Citigroup Inc., offre titoli Market-Linked della durata di 1,5 anni collegati all'Indice Citi Dynamic Asset Selector 5 Excess Return (CIISDA5N). Ogni titolo da $1.000 restituisce il capitale a scadenza più un pagamento aggiuntivo solo se l'Indice registra un apprezzamento dal prezzo del 31 luglio 2025 alla valutazione del 1° febbraio 2027. Il tasso di partecipazione all’aumento è almeno del 175%; pertanto, un guadagno del 25% sull’Indice genererebbe un rendimento del titolo del 43,75% ($1.437,50). Se l’Indice resta stabile o scende, gli investitori ricevono solo il capitale investito—senza partecipazione al ribasso e senza interessi periodici.

I termini principali includono: obbligazione senior non garantita; esposizione creditizia sia a Citigroup Global Markets Holdings Inc. sia a Citigroup Inc.; nessuna quotazione in borsa; e un valore stimato alla data di prezzo inferiore al prezzo di emissione. L’indice sottostante utilizza un modello basato su regole di trend e volatilità, allocando tra futures sull’S&P 500 e futures su titoli di stato USA a 10 anni, con un target di volatilità del 5%, una commissione annua dell’indice dello 0,85% e in funzione dal 13 giugno 2016. I rischi principali evidenziati comprendono la possibilità di rendimento pari a zero, scarsa liquidità sul mercato secondario, limitazioni metodologiche dell’indice e l’impatto dei costi di finanziamento sui componenti basati sui futures.

Citigroup Global Markets Holdings Inc., garantizada por Citigroup Inc., ofrece valores Market-Linked a 1,5 años vinculados al Índice Citi Dynamic Asset Selector 5 Excess Return (CIISDA5N). Cada nota de $1,000 devuelve el principal al vencimiento más un pago adicional solo si el Índice se aprecia desde la fecha de precio del 31 de julio de 2025 hasta la fecha de valoración del 1 de febrero de 2027. La tasa de participación al alza es al menos del 175%; por lo tanto, una ganancia del 25% en el Índice generaría un rendimiento del 43,75% en el valor ($1,437.50). Si el Índice se mantiene estable o baja, los inversores solo reciben el principal—sin participación a la baja y sin intereses periódicos.

Los términos clave incluyen: obligación senior no garantizada; exposición crediticia tanto a Citigroup Global Markets Holdings Inc. como a Citigroup Inc.; sin cotización en ninguna bolsa; y un valor estimado en la fecha de precio inferior al precio de emisión. El índice subyacente utiliza un marco basado en reglas de tendencia y volatilidad, asignando entre futuros del S&P 500 y futuros del Tesoro estadounidense a 10 años, con un objetivo de volatilidad del 5%, una comisión anual del índice del 0,85% y está en funcionamiento desde el 13 de junio de 2016. Los riesgos materiales destacados incluyen la posibilidad de rendimiento cero, iliquidez en el mercado secundario, limitaciones metodológicas del índice y el impacto de los costos de financiamiento en los componentes basados en futuros.

Citigroup Global Markets Holdings Inc.는 Citigroup Inc.의 보증으로 Citi Dynamic Asset Selector 5 Excess Return Index (CIISDA5N)와 연계된 1.5년 만기 시장 연계 증권(Market-Linked Securities)을 제공합니다. 각 $1,000 어음은 2025년 7월 31일 가격 결정일에서 2027년 2월 1일 평가일까지 지수가 상승한 경우에만 만기 시 원금과 추가 수익을 지급합니다. 상승 참여율은 최소 175%로, 지수가 25% 상승하면 증권 수익률은 43.75%($1,437.50)가 됩니다. 지수가 변동 없거나 하락하면 투자자는 원금만 받으며—하락에 대한 손실 참여는 없고 정기 이자도 지급되지 않습니다.

주요 조건으로는 무담보 선순위 채무, Citigroup Global Markets Holdings Inc.와 Citigroup Inc.에 대한 신용 노출, 거래소 상장 없음, 그리고 가격 결정일 기준 발행 가격보다 낮은 추정 가치가 포함됩니다. 기초 지수는 규칙 기반 추세 및 변동성 프레임워크를 사용하여 S&P 500 선물과 10년 만기 미국 국채 선물 간에 자산을 배분하며, 5% 변동성 목표, 연 0.85% 지수 수수료를 공제하고 2016년 6월 13일부터 운영 중입니다. 주요 위험 요소는 무수익 가능성, 2차 시장 유동성 부족, 지수 방법론의 한계, 선물 기반 구성 요소의 자금 조달 비용 부담 등을 포함합니다.

Citigroup Global Markets Holdings Inc., garantie par Citigroup Inc., propose des titres Market-Linked d’une durée de 1,5 an liés à l'Indice Citi Dynamic Asset Selector 5 Excess Return (CIISDA5N). Chaque billet de 1 000 $ rembourse le principal à l’échéance plus un paiement supplémentaire uniquement si l’indice s’apprécie entre la date de tarification du 31 juillet 2025 et la date d’évaluation du 1er février 2027. Le taux de participation à la hausse est d’au moins 175% ; ainsi, une hausse de 25% de l’indice générerait un rendement de 43,75% sur le titre (1 437,50 $). Si l’indice reste stable ou baisse, les investisseurs ne reçoivent que le principal—pas de participation à la baisse ni d’intérêts périodiques.

Les termes clés incluent : obligation senior non garantie ; exposition au crédit de Citigroup Global Markets Holdings Inc. et Citigroup Inc. ; absence de cotation en bourse ; et une valeur estimée à la date de tarification inférieure au prix d’émission. L’indice sous-jacent utilise un cadre basé sur des règles de tendance et de volatilité, allouant entre les contrats à terme S&P 500 et les contrats à terme du Trésor américain à 10 ans, avec un objectif de volatilité de 5%, une commission annuelle de 0,85% déduite, et est en fonctionnement depuis le 13 juin 2016. Les risques importants soulignés incluent la possibilité d’un rendement nul, l’illiquidité sur le marché secondaire, les limites méthodologiques de l’indice et l’impact des coûts de financement sur les composantes basées sur les contrats à terme.

Citigroup Global Markets Holdings Inc., garantiert durch Citigroup Inc., bietet 1,5-jährige Marktgebundene Wertpapiere an, die an den Citi Dynamic Asset Selector 5 Excess Return Index (CIISDA5N) gekoppelt sind. Jede $1.000-Anleihe zahlt bei Fälligkeit das Kapital zurück plus eine Aufwärtszahlung nur, wenn der Index vom Preisstichtag 31. Juli 2025 bis zum Bewertungsdatum 1. Februar 2027 steigt. Die Aufwärtsbeteiligungsrate beträgt mindestens 175%; somit würde ein 25%iger Indexanstieg eine Rendite von 43,75% auf die Anleihe ($1.437,50) erzeugen. Bleibt der Index unverändert oder fällt, erhalten die Anleger nur das Kapital—keine Abwärtsbeteiligung und keine periodischen Zinsen.

Wichtige Bedingungen umfassen: unbesicherte vorrangige Verbindlichkeit; Kreditrisiko sowohl gegenüber Citigroup Global Markets Holdings Inc. als auch Citigroup Inc.; keine Börsennotierung; und ein geschätzter Wert am Preisstichtag unter dem Ausgabepreis. Der zugrunde liegende Index verwendet einen regelbasierten Trend- und Volatilitätsrahmen, der zwischen S&P 500-Futures und 10-jährigen US-Staatsanleihen-Futures allokiert, zielt auf 5% Volatilität ab, zieht eine jährliche Indexgebühr von 0,85% ab und ist seit dem 13. Juni 2016 in Betrieb. Wesentliche Risiken umfassen die Möglichkeit einer Nullrendite, Illiquidität am Sekundärmarkt, methodische Einschränkungen des Index und Finanzierungskostenbelastungen bei den auf Futures basierenden Komponenten.

 

Pricing Supplement dated June 30, 2025

(To Product Supplement No. RLN-1 dated March 25, 2025, Prospectus
Supplement dated March 25, 2025 and Prospectus dated March 25, 2025)

Filed Pursuant to Rule 424(b)(2)

Registration Statement No. 333-285508

 

$1,000,000
Senior Medium-Term Notes, Series K
Redeemable Fixed Rate Notes, Due July 2, 2029

 

Terms of the Notes
Issuer: Bank of Montreal
Principal Amount: $1,000 per Note
Trade Date: June 30, 2025
Issue Date: July 2, 2025
Stated Maturity Date: July 2, 2029. The Notes are subject to redemption by Bank of Montreal prior to the Stated Maturity Date as set forth below under “Optional Redemption.” The Notes are not subject to repayment at the option of any holder of the Notes prior to the Stated Maturity Date.
Payment at Maturity: Unless redeemed prior to maturity by Bank of Montreal, a holder will receive on the Stated Maturity Date a cash payment in U.S. dollars equal to $1,000 per Note, plus any accrued and unpaid interest.
Interest Payment Dates: Semi-annually on the 2nd day of each January and July, commencing January 2, 2026, and ending on the Stated Maturity Date or Optional Redemption Date, if applicable.
Interest Period: With respect to an Interest Payment Date, the period from, and including, the immediately preceding Interest Payment Date (or, in the case of the first Interest Period, the Issue Date) to, but excluding, that Interest Payment Date.
Interest Rate: 4.65% per annum. See “General Terms of the Notes—Fixed Rate Notes” in the accompanying product supplement for a discussion of the manner in which interest on the Notes will be calculated, accrued and paid.
Optional Redemption: The Notes are redeemable by Bank of Montreal, in whole, but not in part, on the Optional Redemption Dates, at 100% of their Principal Amount plus accrued and unpaid interest to, but excluding, the redemption date. Bank of Montreal will give notice to the holders of the Notes at least 5 business days and not more than 30 business days prior to the Optional Redemption Date in the manner described in the accompanying prospectus supplement under “Description of the Notes We May Offer—Notices.”
Optional Redemption Dates: Quarterly on the 2nd day of each January, April, July and October, commencing April 2, 2026 and ending April 2, 2029.
Day Count Convention: 30/360; Unadjusted
Listing: The Notes will not be listed on any securities exchange.
Denominations: $1,000 and any integral multiples of $1,000
CUSIP: 06376DNP5
Bail-inable Notes: The Notes are bail-inable notes (as defined in the accompanying prospectus supplement) and are subject to conversion in whole or in part—by means of a transaction or series of transactions and in one or more steps—into common shares of Bank of Montreal or any of its affiliates under subsection 39.2(2.3) of the Canada Deposit Insurance Corporation Act (the “CDIC Act”) and to variation or extinguishment in consequence, and subject to the application of the laws of the Province of Ontario and the federal laws of Canada applicable therein in respect of the operation of the CDIC Act with respect to the Notes.

The Notes involve risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” beginning on page PS-4 herein and “Risk Factors” beginning on page PS-5 of the accompanying product supplement, page S-2 of the prospectus supplement and page 9 of the prospectus.

The Notes are the unsecured obligations of Bank of Montreal, and, accordingly, all payments on the Notes are subject to the credit risk of Bank of Montreal. If Bank of Montreal defaults on its obligations, you could lose some or all of your investment. The Notes are not insured by the Federal Deposit Insurance Corporation, the Deposit Insurance Fund, the Canada Deposit Insurance Corporation or any other governmental agency.

Neither the Securities and Exchange Commission nor any state securities commission or other regulatory body has approved or disapproved of these Notes or passed upon the accuracy or adequacy of this pricing supplement or the accompanying product supplement, prospectus supplement and prospectus. Any representation to the contrary is a criminal offense.

    Original Issue Price(1) Underwriting Discount(2)   Proceeds to Bank of Montreal(2)
Per Note $1,000.00 $8.00 $992.00
Total $1,000,000.00 $8,000.00 $992,000.00
(1)The original issue price for an eligible institutional investor and an investor purchasing the Notes in a fee-based advisory account will vary based on then-current market conditions and the negotiated price determined at the time of each sale; provided, however, the original issue price for such investors will not be less than $992.00 per Note and will not be more than $1,000 per Note. The original issue price for such investors reflects a foregone selling concession with respect to such sales as described below. The total price to public in the table above assumes a price to public of $1,000 per Note for each Note sold in this offering.
(2)BMO Capital Markets Corp. (“BMOCM”) will receive discounts and commissions of up to $8.00 per Note, and from such underwriting discount will allow selected dealers a selling concession of up to $8.00 per Note depending on market conditions that are relevant to the value of the Notes at the time an order to purchase the Notes is submitted to BMOCM. Dealers who purchase the Notes for sales to eligible institutional investors and fee-based advisory accounts may forgo some or all selling concessions. The per Note discounts and commissions in the table above represents the maximum discounts and commissions payable per Note and the per Note proceeds to the Issuer represents the minimum proceeds to the Issuer per Note (based on the maximum discounts and commissions). The total discounts and commissions in the table above reflects the difference between the assumed total price to public described above and the actual proceeds to the Issuer. See “Supplemental Plan of Distribution” below.

 

BMO CAPITAL MARKETS

 

  
 

 

ADDITIONAL INFORMATION ABOUT THE ISSUER AND THE NOTES

 

You should read this pricing supplement together with product supplement no. RLN-1 dated March 25, 2025, the prospectus supplement dated March 25, 2025 and the prospectus dated March 25, 2025 for additional information about the Notes. To the extent that disclosure in this pricing supplement is inconsistent with the disclosure in the product supplement, prospectus supplement or prospectus, the disclosure in this pricing supplement will control. Certain defined terms used but not defined herein have the meanings set forth in the product supplement, prospectus supplement or prospectus.

 

Our Central Index Key, or CIK, on the SEC website is 927971. When we refer to “we,” “us” or “our” in this pricing supplement, we refer only to Bank of Montreal.

 

You may access the product supplement, prospectus supplement and prospectus on the SEC website www.sec.gov as follows (or if such address has changed, by reviewing our filings for the relevant date on the SEC website):

 

·Product Supplement No. RLN-1 dated March 25, 2025:

https://www.sec.gov/Archives/edgar/data/927971/000121465925004720/u321250424b2.htm

 

·Prospectus Supplement and Prospectus dated March 25, 2025:

https://www.sec.gov/Archives/edgar/data/927971/000119312525062081/d840917d424b5.htm

 

 

 PS-2 
 

 

AGREEMENT WITH RESPECT TO THE EXERCISE OF CANADIAN BAIL-IN POWERS

 

By its acquisition of the Notes, each holder or beneficial owner of that Note is deemed to (i) agree to be bound, in respect of that Note, by the CDIC Act, including the conversion of that Note, in whole or in part—by means of a transaction or series of transactions and in one or more steps— into common shares of Bank of Montreal or any of its affiliates under subsection 39.2(2.3) of the CDIC Act and the variation or extinguishment of that Note in consequence, and by the application of the laws of the Province of Ontario and the federal laws of Canada applicable therein in respect of the operation of the CDIC Act with respect to that Note; (ii) attorn and submit to the jurisdiction of the courts in the Province of Ontario with respect to the CDIC Act and those laws; (iii) have represented and warranted that Bank of Montreal has not directly or indirectly provided financing to the holder or beneficial owner of the bail-inable notes for the express purpose of investing in the bail-inable notes; and (iv) acknowledge and agree that the terms referred to in paragraphs (i) and (ii), above, are binding on that holder or beneficial owner despite any provisions in the indenture or that Note, any other law that governs that Note and any other agreement, arrangement or understanding between that holder or beneficial owner and Bank of Montreal with respect to that Note.

 

Holders and beneficial owners of any Note will have no further rights in respect of that Note to the extent that Note is converted in a bail-in conversion, other than those provided under the bail-in regime, and by its acquisition of an interest in any Note, each holder or beneficial owner of that Note is deemed to irrevocably consent to the converted portion of the Principal Amount of that Note and any accrued and unpaid interest thereon being deemed paid in full by Bank of Montreal by the issuance of common shares of Bank of Montreal (or, if applicable, any of its affiliates) upon the occurrence of a bail-in conversion, which bail-in conversion will occur without any further action on the part of that holder or beneficial owner or the trustee; provided that, for the avoidance of doubt, this consent will not limit or otherwise affect any rights that holders or beneficial owners may have under the bail-in regime.

 

See “Risk Factors— The Notes Will Be Subject to Risks, Including Non-payment In Full or, in the Case of Bail-inable Notes, Conversion in Whole or in Part – By Means of a Transaction or Series of Transactions and in One or More Steps – Into Common Shares of the Bank or Any of its Affiliates, Under Canadian Bank Resolution Powers” and “Description of the Notes We May Offer—Special Provisions Related to Bail-inable Notes” in the accompanying prospectus supplement and “Description of Debt Securities—Special Provisions Related to Bail-inable Debt Securities” in the prospectus for a description of provisions applicable to the Notes as a result of Canadian bail-in powers.

 

 PS-3 
 

 

SELECTED RISK CONSIDERATIONS

 

The Notes involve risks not associated with an investment in conventional debt securities. Some of the risks that apply to an investment in the Notes are summarized below, but we urge you to read the more detailed explanation of the risks relating to the Notes generally in the “Risk Factors” sections of the accompanying product supplement and prospectus supplement. You should reach an investment decision only after you have carefully considered with your advisors the appropriateness of an investment in the Notes in light of your particular circumstances.

 

Risks Relating To The Notes Generally

 

The Amount Of Interest You Receive May Be Less Than The Return You Could Earn On Other Investments.

 

Interest rates may change significantly over the term of the Notes, and it is impossible to predict what interest rates will be at any point in the future. The interest rate payable on the Notes may be more or less than prevailing market interest rates at any time during the term of the Notes. As a result, the amount of interest you receive on the Notes may be less than the return you could earn on other investments.

 

The Per Annum Interest Rate Will Affect Our Decision To Redeem The Notes.

 

It is more likely that we will redeem the Notes prior to the Stated Maturity Date during periods when the remaining interest is to accrue on the Notes at a rate that is greater than that which we would pay on a conventional fixed-rate non-redeemable debt security of comparable maturity. If we redeem the Notes prior to the Stated Maturity Date, you may not be able to invest in other debt securities that yield as much interest as the Notes.

 

The Notes Are Subject To Credit Risk.

 

The Notes are our obligations and are not, either directly or indirectly, an obligation of any third party. Any amounts payable under the Notes are subject to our creditworthiness. As a result, our actual and perceived creditworthiness may affect the value of the Notes and, in the event we were to default on our obligations under the Notes, you may not receive any amounts owed to you under the terms of the Notes.

 

Risks Relating To The Value Of The Notes And Any Secondary Market

 

The Underwriting Discount, Offering Expenses And Certain Hedging Costs Are Likely To Adversely Affect The Price At Which You Can Sell Your Notes.

 

Assuming no changes in market conditions or any other relevant factors, the price, if any, at which you may be able to sell the Notes will likely be lower than the original issue price. The original issue price includes, and any price quoted to you is likely to exclude, the underwriting discount paid in connection with the initial distribution, offering expenses and the projected profit that our hedge counterparty (which may be one of our affiliates) expects to realize in consideration for assuming the risks inherent in hedging our obligations under the Notes. In addition, any such price is also likely to reflect dealer discounts, mark-ups and other transaction costs, such as a discount to account for costs associated with establishing or unwinding any related hedge transaction. The price at which the agent or any other potential buyer may be willing to buy your Notes will also be affected by the interest rate provided by the Notes and by the market and other conditions discussed in the next risk factor.

 

The Value Of The Notes Prior To Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways.

 

The value of the Notes prior to maturity will be affected by interest rates at that time and a number of other factors, some of which are interrelated in complex ways. The effect of any one factor may be offset or magnified by the effect of another factor. The following factors, which are described in more detail in the accompanying product supplement, are expected to affect the value of the Notes: interest rates and our creditworthiness.

 

The Notes Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Notes To Develop.

 

The Notes will not be listed or displayed on any securities exchange. Although the agent and/or its affiliates may purchase the Notes from holders, they are not obligated to do so and are not required to make a market for the Notes. There can be no assurance that a secondary market will develop. Because we do not expect that any market makers will participate in a secondary market for the Notes, the price at which you may be able to sell your Notes is likely to depend on the price, if any, at which the agent is willing to buy your Notes.

 

 PS-4 
 

 

If a secondary market does exist, it may be limited. Accordingly, there may be a limited number of buyers if you decide to sell your Notes prior to maturity. This may affect the price you receive upon such sale. Consequently, you should be willing to hold the Notes to maturity.

 

Risk Relating To Conflicts Of Interest

 

A Dealer Participating In The Offering Of The Notes Or Its Affiliates May Realize Hedging Profits Projected By Its Proprietary Pricing Models In Addition To Any Selling Concession And/Or Other Fee, Creating A Further Incentive For The Participating Dealer To Sell The Notes To You.

 

If any dealer participating in the offering of the Notes, which we refer to as a “participating dealer,” or any of its affiliates conducts hedging activities for us in connection with the Notes, that participating dealer or its affiliates will expect to realize a projected profit from such hedging activities, if any, and this projected hedging profit will be in addition to any concession and/or other fee that the participating dealer realizes for the sale of the Notes to you. This additional projected profit may create a further incentive for the participating dealer to sell the Notes to you.

 

 PS-5 
 

 

SUPPLEMENTAL TAX CONSIDERATIONS

 

In the opinion of our counsel, Davis Polk & Wardwell LLP, the Notes should be treated as debt instruments for U.S. federal tax purposes. Based on the facts provided, the Notes should be treated as issued without original issue discount.

 

Both U.S. and non-U.S. holders should read the section of the accompanying product supplement entitled “United States Federal Income Tax Considerations.”

 

You should consult your tax advisor regarding all aspects of the U.S. federal tax consequences of an investment in the Notes, as well as any tax consequences arising under the laws of any state, local or non-U.S. taxing jurisdiction.

 

This discussion supplements the discussion in “United States Federal Income Tax Considerations” in the accompanying product supplement and should be read in conjunction therewith.

 

 PS-6 
 

 

SUPPLEMENTAL PLAN OF DISTRIBUTION

 

BMOCM, a wholly owned subsidiary of Bank of Montreal, is the agent for the distribution of the Notes. We have agreed to sell to BMOCM, and BMOCM has agreed to purchase from us, all of the Notes at the original issue price less the underwriting discount specified on the cover page of this pricing supplement. The agent may resell the Notes to other securities dealers at the original issue price less a concession not in excess of the underwriting discount. BMOCM will receive an underwriting discount in the amount indicated on the cover hereof, and from such underwriting discount will allow selected dealers a selling concession in an amount not to exceed such underwriting discount depending on market conditions that are relevant to the value of the Notes at the time an order to purchase the Notes is submitted to the agent. Dealers who purchase the Notes for sales to eligible institutional investors and fee-based advisory accounts may forgo some or all selling concessions.

 

The agent or another affiliate of ours expects to realize hedging profits projected by its proprietary pricing models to the extent it assumes the risks inherent in hedging our obligations under the Notes. If any dealer participating in the distribution of the Notes or any of its affiliates conducts hedging activities for us in connection with the Notes, that dealer or its affiliate will expect to realize a profit projected by its proprietary pricing models from such hedging activities. Any such projected profit will be in addition to any discount or concession received in connection with the sale of the Notes to you.

 

If all of the Notes are not sold on the Trade Date at the original offering price, the agent and/or dealers may change the offering price and the other selling terms and thereafter from time to time may offer the Notes for sale in one or more transactions at market prices prevailing at the time of sale, at prices related to market prices or at negotiated prices.

 

BMOCM may, but is not obligated to, make a market in the Notes. BMOCM will determine any secondary market prices that it is prepared to offer in its sole discretion.

 

We may use this pricing supplement in the initial sale of the Notes. In addition, BMOCM or another of our affiliates may use this pricing supplement in market-making transactions in any Notes after their initial sale. Unless BMOCM or we inform you otherwise in the confirmation of sale, this pricing supplement is being used by BMOCM in a market-making transaction.

 

See “Supplemental Plan of Distribution” in the accompanying product supplement, “Supplemental Plan of Distribution (Conflicts of Interest)” in the accompanying prospectus supplement and “Plan of Distribution (Conflicts of Interest)” in the accompanying prospectus for more information.

 

 PS-7 
 

 

VALIDITY OF THE NOTES

 

In the opinion of Osler, Hoskin & Harcourt LLP, the issue and sale of the Notes has been duly authorized by all necessary corporate action of the Bank of Montreal in conformity with the indenture, and when this pricing supplement has been attached to, and duly notated on, the master note that represents the Notes, the Notes will have been validly executed, authenticated, issued and delivered, to the extent that validity of the Notes is a matter governed by the laws of the Province of Ontario and the federal laws of Canada applicable therein and will be valid obligations of the Bank of Montreal, subject to the following limitations (i) the enforceability of the indenture may be limited by the Canada Deposit Insurance Corporation Act (Canada), the Winding-up and Restructuring Act (Canada) and bankruptcy, insolvency, reorganization, receivership, moratorium, arrangement or winding-up laws or other similar laws affecting the enforcement of creditors’ rights generally; (ii) the enforceability of the indenture may be limited by equitable principles, including the principle that equitable remedies such as specific performance and injunction may only be granted in the discretion of a court of competent jurisdiction; (iii) pursuant to the Currency Act (Canada) a judgment by a Canadian court must be awarded in Canadian currency and that such judgment may be based on a rate of exchange in existence on a day other than the day of payment; and (iv) the enforceability of the indenture will be subject to the limitations contained in the Limitations Act, 2002 (Ontario), and such counsel expresses no opinion as to whether a court may find any provision of the indenture to be unenforceable as an attempt to vary or exclude a limitation period under that Act. This opinion is given as of the date hereof and is limited to the laws of the Provinces of Ontario and the federal laws of Canada applicable therein. In addition, this opinion is subject to certain assumptions about (i) the Trustees’ authorization, execution and delivery of the indenture, (ii) the genuineness of signatures and (iii) certain other matters, all as stated in the letter of such counsel dated March 25, 2025, which has been filed as Exhibit 5.3 to Bank of Montreal’s Form 6-K filed with the SEC and dated March 25, 2025.

 

In the opinion of Davis Polk & Wardwell LLP, as special United States products counsel to the Bank of Montreal, when the Notes offered by this pricing supplement have been issued by the Bank of Montreal pursuant to the indenture, the trustee has made the appropriate entries or notations to the master global note that represents such Notes (the “master note”), and such Notes have been delivered against payment as contemplated herein, such Notes will be valid and binding obligations of the Bank of Montreal, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally, concepts of reasonableness and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the lack of bad faith) and possible judicial or regulatory actions or applications giving effect to governmental actions or foreign laws affecting creditors’ rights, provided that such counsel expresses no opinion as to (i) the enforceability of any waiver of rights under any usury or stay law; or (ii) the effect of fraudulent conveyance, fraudulent transfer or similar provision of applicable law on the conclusions expressed above. This opinion is given as of the date hereof and is limited to the laws of the State of New York. Insofar as the foregoing opinion involves matters governed by the laws of the Provinces of Ontario and Québec and the federal laws of Canada, you have received, and we understand that you are relying upon, the opinion of Osler, Hoskin & Harcourt LLP, Canadian counsel for the Bank of Montreal, set forth above. In addition, this opinion is subject to customary assumptions about the trustee’s authorization, execution and delivery of the indenture and the authentication of the master note and the validity, binding nature and enforceability of the indenture with respect to the trustee, all as stated in the opinion of Davis Polk & Wardwell LLP dated March 25, 2025, which has been filed as an exhibit to Bank of Montreal’s report on Form 6-K filed with the SEC on March 25, 2025.

 

 

PS-8

 

 

 

FAQ

What is the ticker and structure of the underlying index for C’s Market-Linked Securities?

The notes reference the Citi Dynamic Asset Selector 5 Excess Return Index (CIISDA5N), a rules-based trend-following index.

How is the payment at maturity on Citigroup’s securities calculated?

If the Index appreciates: $1,000 × Index Return × ≥175%. If the Index is flat or lower: only the $1,000 principal is repaid.

Do the Citigroup notes pay periodic interest or coupons?

No. The securities provide no interim interest; all potential return is delivered at maturity.

What are the key risk factors highlighted in Citigroup’s Free Writing Prospectus?

Major risks include no guaranteed return, credit exposure to Citigroup entities, secondary-market illiquidity, index methodology limitations, and initial value below par.

When do the Citigroup Market-Linked Securities mature?

The notes mature on February 4, 2027, with one valuation date on February 1, 2027.
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