[FWP] MicroSectors Energy 3x Leveraged ETNs Free Writing Prospectus
Citigroup Global Markets Holdings Inc., fully guaranteed by Citigroup Inc., is offering Autocallable Phoenix Medium-Term Senior Notes (Series N) linked to the common stock of Eli Lilly & Co. (LLY), maturing in July 2026.
Key economics: Each $1,000 note may pay a 3.9125% quarterly contingent coupon (≈ 15.65% annualized) whenever LLY’s closing price on an interim or final valuation date is at least 80% of the initial share price (the “coupon barrier”). Missed coupons can be caught up if a later valuation date meets the barrier. If on any interim valuation date LLY closes at or above the initial price, the note is automatically redeemed for $1,000 plus the current coupon. Absent early redemption, maturity payment equals: (i) $1,000 + coupon if the final price is ≥ 80% of initial; or (ii) $1,000 + $1,000 × 1.25 × (share return + 20%) if the final price is below 80%. Investors therefore absorb losses beyond a 20% buffer with 1.25× leverage and could lose their entire principal.
Structural details: Pricing and issue dates are expected 3 & 9 July 2025, respectively; interim valuation dates fall in Oct-25, Jan-26 and Apr-26; CUSIP 17333LGE9. Notes are unsecured, unsubordinated and unlisted; liquidity will rely solely on dealer willingness. Estimated value on pricing date is projected at ≥ $936.50, below the $1,000 issue price, reflecting dealer margins and hedge costs. CGMI earns a $10 underwriting fee per note (waived for fiduciary accounts); J.P. Morgan entities act as placement agents.
Principal risks: investors face (1) credit risk of Citigroup entities; (2) possible loss of some or all principal if LLY falls > 20% at final valuation; (3) non-payment of coupons if barriers are breached; (4) early redemption risk limiting upside and reinvestment options; (5) limited or no secondary market; (6) tax uncertainty, including potential 30% withholding for non-U.S. holders. The product affords no participation in LLY dividends or upside beyond coupon receipts.
Citigroup Global Markets Holdings Inc., completamente garantita da Citigroup Inc., offre Note Senior Autocallable Phoenix a Medio Termine (Serie N) collegate alle azioni ordinarie di Eli Lilly & Co. (LLY), con scadenza a luglio 2026.
Principali caratteristiche economiche: Ogni nota da $1.000 può pagare un coupon trimestrale condizionato del 3,9125% (circa 15,65% su base annua) ogni volta che il prezzo di chiusura di LLY in una data di valutazione intermedia o finale è almeno l'80% del prezzo iniziale delle azioni (la “barriera del coupon”). I coupon non pagati possono essere recuperati se in una data di valutazione successiva il prezzo supera la barriera. Se in una data di valutazione intermedia LLY chiude al prezzo iniziale o superiore, la nota viene rimborsata automaticamente a $1.000 più il coupon corrente. In assenza di rimborso anticipato, il pagamento a scadenza sarà: (i) $1.000 + coupon se il prezzo finale è ≥ 80% del prezzo iniziale; oppure (ii) $1.000 + $1.000 × 1,25 × (rendimento azionario + 20%) se il prezzo finale è inferiore all'80%. Gli investitori, quindi, sopportano perdite oltre una soglia di protezione del 20% con una leva di 1,25× e potrebbero perdere l'intero capitale.
Dettagli strutturali: Le date di prezzo e emissione sono previste rispettivamente per il 3 e il 9 luglio 2025; le date di valutazione intermedie sono ottobre 2025, gennaio 2026 e aprile 2026; CUSIP 17333LGE9. Le note sono non garantite, non subordinate e non quotate; la liquidità dipenderà esclusivamente dalla disponibilità dei dealer. Il valore stimato alla data di prezzo è previsto ≥ $936,50, inferiore al prezzo di emissione di $1.000, riflettendo margini dealer e costi di copertura. CGMI percepisce una commissione di sottoscrizione di $10 per nota (esente per conti fiduciari); entità J.P. Morgan agiscono come agenti di collocamento.
Principali rischi: gli investitori affrontano (1) rischio di credito delle entità Citigroup; (2) possibile perdita parziale o totale del capitale se LLY scende oltre il 20% alla valutazione finale; (3) mancato pagamento dei coupon se le barriere non sono rispettate; (4) rischio di rimborso anticipato che limita i potenziali guadagni e le opzioni di reinvestimento; (5) mercato secondario limitato o assente; (6) incertezza fiscale, inclusa una possibile ritenuta del 30% per investitori non statunitensi. Il prodotto non prevede partecipazione ai dividendi di LLY né guadagni oltre i coupon.
Citigroup Global Markets Holdings Inc., totalmente garantizada por Citigroup Inc., ofrece Notas Senior Autocancelables Phoenix a Medio Plazo (Serie N) vinculadas a las acciones ordinarias de Eli Lilly & Co. (LLY), con vencimiento en julio de 2026.
Aspectos económicos clave: Cada nota de $1,000 puede pagar un cupón trimestral contingente del 3.9125% (aproximadamente 15.65% anualizado) siempre que el precio de cierre de LLY en una fecha de valoración intermedia o final sea al menos el 80% del precio inicial de la acción (la “barrera del cupón”). Los cupones no pagados pueden recuperarse si en una fecha de valoración posterior se cumple la barrera. Si en cualquier fecha de valoración intermedia LLY cierra al precio inicial o superior, la nota se redime automáticamente por $1,000 más el cupón vigente. Si no hay redención anticipada, el pago al vencimiento será: (i) $1,000 + cupón si el precio final es ≥ 80% del inicial; o (ii) $1,000 + $1,000 × 1.25 × (retorno de la acción + 20%) si el precio final está por debajo del 80%. Por lo tanto, los inversores asumen pérdidas más allá de un margen de protección del 20% con un apalancamiento de 1.25× y podrían perder todo su capital.
Detalles estructurales: Las fechas de precio y emisión se esperan para el 3 y 9 de julio de 2025, respectivamente; las fechas de valoración intermedia son octubre 2025, enero 2026 y abril 2026; CUSIP 17333LGE9. Las notas son no garantizadas, no subordinadas y no cotizadas; la liquidez dependerá únicamente de la disposición de los dealers. El valor estimado en la fecha de precio se proyecta ≥ $936.50, por debajo del precio de emisión de $1,000, reflejando márgenes de dealer y costos de cobertura. CGMI recibe una comisión de suscripción de $10 por nota (exenta para cuentas fiduciarias); entidades de J.P. Morgan actúan como agentes colocadores.
Riesgos principales: los inversores enfrentan (1) riesgo crediticio de las entidades Citigroup; (2) posible pérdida parcial o total del capital si LLY cae más del 20% en la valoración final; (3) no pago de cupones si se incumplen las barreras; (4) riesgo de redención anticipada que limita el potencial de ganancias y opciones de reinversión; (5) mercado secundario limitado o inexistente; (6) incertidumbre fiscal, incluyendo posible retención del 30% para titulares no estadounidenses. El producto no ofrece participación en dividendos de LLY ni ganancias más allá de los cupones.
Citigroup Global Markets Holdings Inc.는 Citigroup Inc.의 전액 보증을 받아 Eli Lilly & Co. (LLY)의 보통주와 연계된 오토콜러블 피닉스 중기 선순위 채권(시리즈 N)을 2026년 7월 만기일로 발행합니다.
주요 경제 조건: 각 $1,000 채권은 LLY의 종가가 초기 주가의 최소 80% 이상일 경우(“쿠폰 장벽”) 분기별로 3.9125% 조건부 쿠폰(연환산 약 15.65%)을 지급할 수 있습니다. 미지급 쿠폰은 이후 평가일에 장벽을 충족하면 소급 지급됩니다. 중간 평가일에 LLY가 초기 가격 이상으로 마감하면 채권은 자동 상환되어 $1,000과 현재 쿠폰을 지급합니다. 조기 상환이 없으면 만기 시 지급액은 (i) 최종 가격이 초기 가격의 80% 이상일 경우 $1,000 + 쿠폰, 또는 (ii) 최종 가격이 80% 미만일 경우 $1,000 + $1,000 × 1.25 × (주가 수익률 + 20%)입니다. 투자자는 20% 보호 범위를 초과하는 손실과 1.25배 레버리지를 부담하며 원금 전액 손실 가능성도 있습니다.
구조적 세부사항: 가격 결정일과 발행일은 각각 2025년 7월 3일과 9일로 예상되며, 중간 평가일은 2025년 10월, 2026년 1월, 4월입니다; CUSIP 17333LGE9. 채권은 무담보, 무후순위, 비상장이며 유동성은 딜러의 의지에 전적으로 의존합니다. 가격 결정일 예상 가치는 $936.50 이상으로, $1,000 발행가보다 낮으며 딜러 마진과 헤지 비용이 반영된 것입니다. CGMI는 채권당 $10 인수 수수료를 받으며(수탁 계좌는 면제), J.P. Morgan 계열사가 배치 대리인 역할을 합니다.
주요 위험: 투자자는 (1) Citigroup 계열사의 신용 위험; (2) 최종 평가일에 LLY가 20% 이상 하락 시 원금 일부 또는 전액 손실 가능성; (3) 장벽 미충족 시 쿠폰 미지급 위험; (4) 조기 상환 위험으로 상승 잠재력과 재투자 기회 제한; (5) 제한적이거나 없는 2차 시장; (6) 비미국 투자자에 대한 30% 원천징수 가능성을 포함한 세무 불확실성에 직면합니다. 이 상품은 LLY 배당금 참여나 쿠폰 수령 이상의 상승 수익을 제공하지 않습니다.
Citigroup Global Markets Holdings Inc., entièrement garanti par Citigroup Inc., propose des Obligations Senior Phoenix Autocallables à Moyen Terme (Série N) liées aux actions ordinaires de Eli Lilly & Co. (LLY), arrivant à échéance en juillet 2026.
Principaux éléments économiques : Chaque obligation de 1 000 $ peut verser un coupon trimestriel conditionnel de 3,9125% (soit environ 15,65% annualisé) dès que le cours de clôture de LLY à une date d’évaluation intermédiaire ou finale est au moins égal à 80% du prix initial de l'action (la « barrière du coupon »). Les coupons non versés peuvent être rattrapés si une date d’évaluation ultérieure respecte la barrière. Si, à une date d’évaluation intermédiaire, LLY clôture au prix initial ou au-dessus, l’obligation est remboursée automatiquement à 1 000 $ plus le coupon en cours. En l’absence de remboursement anticipé, le paiement à l’échéance est : (i) 1 000 $ + coupon si le prix final est ≥ 80% du prix initial ; ou (ii) 1 000 $ + 1 000 $ × 1,25 × (performance de l’action + 20%) si le prix final est inférieur à 80%. Les investisseurs supportent donc des pertes au-delà d’une marge de protection de 20% avec un effet de levier de 1,25× et peuvent perdre la totalité de leur capital.
Détails structurels : Les dates de prix et d’émission sont prévues respectivement les 3 et 9 juillet 2025 ; les dates d’évaluation intermédiaires sont octobre 2025, janvier 2026 et avril 2026 ; CUSIP 17333LGE9. Les obligations sont non sécurisées, non subordonnées et non cotées ; la liquidité dépendra uniquement de la volonté des teneurs de marché. La valeur estimée à la date de prix est projetée à ≥ 936,50 $, inférieure au prix d’émission de 1 000 $, reflétant les marges des teneurs et les coûts de couverture. CGMI perçoit une commission de souscription de 10 $ par obligation (exonérée pour les comptes fiduciaires) ; des entités J.P. Morgan agissent comme agents de placement.
Principaux risques : les investisseurs sont exposés à (1) un risque de crédit des entités Citigroup ; (2) une perte partielle ou totale du capital si LLY baisse de plus de 20% à l’évaluation finale ; (3) un non-paiement des coupons si les barrières sont franchies ; (4) un risque de remboursement anticipé limitant le potentiel de hausse et les options de réinvestissement ; (5) un marché secondaire limité ou inexistant ; (6) une incertitude fiscale, incluant une retenue à la source potentielle de 30% pour les détenteurs non américains. Le produit n’offre aucune participation aux dividendes de LLY ni de gains au-delà des coupons.
Citigroup Global Markets Holdings Inc., vollständig garantiert von Citigroup Inc., bietet Autocallable Phoenix Medium-Term Senior Notes (Serie N) an, die an die Stammaktien von Eli Lilly & Co. (LLY) gekoppelt sind und im Juli 2026 fällig werden.
Wesentliche wirtschaftliche Merkmale: Jede $1.000-Anleihe kann eine vierteljährliche bedingte Kuponzahlung von 3,9125% (ca. 15,65% p.a.) leisten, wenn der Schlusskurs von LLY an einem Zwischen- oder Endbewertungstag mindestens 80% des Anfangspreises der Aktie (die „Kupon-Schwelle“) erreicht. Verpasste Kupons können nachgeholt werden, wenn ein späterer Bewertungstag die Schwelle erfüllt. Schließt LLY an einem Zwischenbewertungstag auf oder über dem Anfangspreis, wird die Anleihe automatisch zurückgezahlt mit $1.000 plus dem aktuellen Kupon. Ohne vorzeitige Rückzahlung beträgt die Rückzahlung bei Fälligkeit: (i) $1.000 + Kupon, wenn der Endpreis ≥ 80% des Anfangspreises ist; oder (ii) $1.000 + $1.000 × 1,25 × (Aktienrendite + 20%), wenn der Endpreis unter 80% liegt. Anleger tragen somit Verluste über eine 20%-Pufferzone hinaus mit einem Hebel von 1,25× und können ihr gesamtes Kapital verlieren.
Strukturelle Details: Preis- und Emissionstermine sind voraussichtlich der 3. bzw. 9. Juli 2025; Zwischenbewertungstermine sind Oktober 2025, Januar 2026 und April 2026; CUSIP 17333LGE9. Die Notes sind ungesichert, nicht nachrangig und nicht börsennotiert; die Liquidität hängt ausschließlich von der Bereitschaft der Händler ab. Der geschätzte Wert am Preistag wird auf ≥ $936,50 prognostiziert, unter dem Ausgabepreis von $1.000, was Händler-Margen und Absicherungskosten widerspiegelt. CGMI erhält eine Zeichnungsgebühr von $10 pro Note (für Treuhandkonten entfällt diese); J.P. Morgan-Einheiten fungieren als Platzierungsagenten.
Hauptsächliche Risiken: Anleger sind ausgesetzt an (1) Kreditrisiko der Citigroup-Einheiten; (2) möglichem teilweisem oder vollständigem Kapitalverlust, falls LLY am Endbewertungstag mehr als 20% fällt; (3) Nichtzahlung von Kupons bei Überschreiten der Schwellenwerte; (4) Risiko der vorzeitigen Rückzahlung, das Aufwärtspotenzial und Reinvestitionsmöglichkeiten einschränkt; (5) begrenztem oder keinem Sekundärmarkt; (6) steuerlicher Unsicherheit, einschließlich möglicher 30% Quellensteuer für Nicht-US-Inhaber. Das Produkt bietet keine Beteiligung an LLY-Dividenden oder Aufwärtspotenzial über die Kuponzahlungen hinaus.
- High contingent coupon of 3.9125% per quarter (up to 15.65% annually) if barriers are met.
- 20% downside buffer cushions moderate declines in Eli Lilly shares at maturity.
- Catch-up feature pays missed coupons if later observations recover above the barrier.
- Citigroup Inc. guarantee provides senior unsecured claim against the parent.
- Principal at risk: losses accelerate 1.25× once Eli Lilly falls more than 20%, with no minimum redemption.
- No participation in upside; investors cap returns at coupon level and miss LLY appreciation.
- Liquidity constraints: notes are unlisted; resale depends on dealer bid, likely below par.
- Estimated value below issue price (≥ $936.50 vs $1,000), indicating an immediate mark-to-model discount.
- Tax uncertainty and potential 30% withholding for non-U.S. holders.
- Early redemption risk can halt coupon stream and force reinvestment at unknown rates.
Insights
TL;DR High coupon comes with equity-linked downside, 20% buffer, no upside sharing; overall a yield-enhancement play with significant risk.
The note offers an attractive headline yield of 15.65% annualized, contingent on LLY staying at or above 80% of its initial price on quarterly observations. The 20% buffer plus 1.25× loss factor is standard for Phoenix structures; beyond the buffer investors bleed faster than the stock. Automatic call can shorten tenor to three months, capping maximum coupon accrual at 15.65%. Estimated value (≥ 93.65% of par) indicates a 6.35-point premium paid for structuring, placement fees and hedge costs. Credit exposure to Citigroup remains, although senior status mitigates relative priority risk. From Citi’s perspective, the issuance is routine balance-sheet funding with embedded derivatives, unlikely to be material in scale. Investor suitability is limited to those seeking high conditional income and prepared to assume single-stock risk.
TL;DR Product’s liquidity, valuation gap and tax ambiguity temper its high coupon; impact on Citigroup’s credit profile is negligible.
Liquidity risk is pronounced because the notes are unlisted and secondary markets rely on CGMI’s discretion; exit values will embed bid/ask spreads and funding adjustments. The estimated value discount and six-month temporary premium decay create early mark-to-market drag. Tax treatment as prepaid forward is uncertain; non-US holders face potential 30% withholding. For Citi, this is standard structured-note flow business that hedges equity exposure; the bank may profit via hedging even if investors lose. Overall, from an enterprise standpoint the filing is operationally routine and neutral; from an investor standpoint, risk/reward skews unfavorable unless one is bullish-to-sideways on LLY within the 20% buffer.
Citigroup Global Markets Holdings Inc., completamente garantita da Citigroup Inc., offre Note Senior Autocallable Phoenix a Medio Termine (Serie N) collegate alle azioni ordinarie di Eli Lilly & Co. (LLY), con scadenza a luglio 2026.
Principali caratteristiche economiche: Ogni nota da $1.000 può pagare un coupon trimestrale condizionato del 3,9125% (circa 15,65% su base annua) ogni volta che il prezzo di chiusura di LLY in una data di valutazione intermedia o finale è almeno l'80% del prezzo iniziale delle azioni (la “barriera del coupon”). I coupon non pagati possono essere recuperati se in una data di valutazione successiva il prezzo supera la barriera. Se in una data di valutazione intermedia LLY chiude al prezzo iniziale o superiore, la nota viene rimborsata automaticamente a $1.000 più il coupon corrente. In assenza di rimborso anticipato, il pagamento a scadenza sarà: (i) $1.000 + coupon se il prezzo finale è ≥ 80% del prezzo iniziale; oppure (ii) $1.000 + $1.000 × 1,25 × (rendimento azionario + 20%) se il prezzo finale è inferiore all'80%. Gli investitori, quindi, sopportano perdite oltre una soglia di protezione del 20% con una leva di 1,25× e potrebbero perdere l'intero capitale.
Dettagli strutturali: Le date di prezzo e emissione sono previste rispettivamente per il 3 e il 9 luglio 2025; le date di valutazione intermedie sono ottobre 2025, gennaio 2026 e aprile 2026; CUSIP 17333LGE9. Le note sono non garantite, non subordinate e non quotate; la liquidità dipenderà esclusivamente dalla disponibilità dei dealer. Il valore stimato alla data di prezzo è previsto ≥ $936,50, inferiore al prezzo di emissione di $1.000, riflettendo margini dealer e costi di copertura. CGMI percepisce una commissione di sottoscrizione di $10 per nota (esente per conti fiduciari); entità J.P. Morgan agiscono come agenti di collocamento.
Principali rischi: gli investitori affrontano (1) rischio di credito delle entità Citigroup; (2) possibile perdita parziale o totale del capitale se LLY scende oltre il 20% alla valutazione finale; (3) mancato pagamento dei coupon se le barriere non sono rispettate; (4) rischio di rimborso anticipato che limita i potenziali guadagni e le opzioni di reinvestimento; (5) mercato secondario limitato o assente; (6) incertezza fiscale, inclusa una possibile ritenuta del 30% per investitori non statunitensi. Il prodotto non prevede partecipazione ai dividendi di LLY né guadagni oltre i coupon.
Citigroup Global Markets Holdings Inc., totalmente garantizada por Citigroup Inc., ofrece Notas Senior Autocancelables Phoenix a Medio Plazo (Serie N) vinculadas a las acciones ordinarias de Eli Lilly & Co. (LLY), con vencimiento en julio de 2026.
Aspectos económicos clave: Cada nota de $1,000 puede pagar un cupón trimestral contingente del 3.9125% (aproximadamente 15.65% anualizado) siempre que el precio de cierre de LLY en una fecha de valoración intermedia o final sea al menos el 80% del precio inicial de la acción (la “barrera del cupón”). Los cupones no pagados pueden recuperarse si en una fecha de valoración posterior se cumple la barrera. Si en cualquier fecha de valoración intermedia LLY cierra al precio inicial o superior, la nota se redime automáticamente por $1,000 más el cupón vigente. Si no hay redención anticipada, el pago al vencimiento será: (i) $1,000 + cupón si el precio final es ≥ 80% del inicial; o (ii) $1,000 + $1,000 × 1.25 × (retorno de la acción + 20%) si el precio final está por debajo del 80%. Por lo tanto, los inversores asumen pérdidas más allá de un margen de protección del 20% con un apalancamiento de 1.25× y podrían perder todo su capital.
Detalles estructurales: Las fechas de precio y emisión se esperan para el 3 y 9 de julio de 2025, respectivamente; las fechas de valoración intermedia son octubre 2025, enero 2026 y abril 2026; CUSIP 17333LGE9. Las notas son no garantizadas, no subordinadas y no cotizadas; la liquidez dependerá únicamente de la disposición de los dealers. El valor estimado en la fecha de precio se proyecta ≥ $936.50, por debajo del precio de emisión de $1,000, reflejando márgenes de dealer y costos de cobertura. CGMI recibe una comisión de suscripción de $10 por nota (exenta para cuentas fiduciarias); entidades de J.P. Morgan actúan como agentes colocadores.
Riesgos principales: los inversores enfrentan (1) riesgo crediticio de las entidades Citigroup; (2) posible pérdida parcial o total del capital si LLY cae más del 20% en la valoración final; (3) no pago de cupones si se incumplen las barreras; (4) riesgo de redención anticipada que limita el potencial de ganancias y opciones de reinversión; (5) mercado secundario limitado o inexistente; (6) incertidumbre fiscal, incluyendo posible retención del 30% para titulares no estadounidenses. El producto no ofrece participación en dividendos de LLY ni ganancias más allá de los cupones.
Citigroup Global Markets Holdings Inc.는 Citigroup Inc.의 전액 보증을 받아 Eli Lilly & Co. (LLY)의 보통주와 연계된 오토콜러블 피닉스 중기 선순위 채권(시리즈 N)을 2026년 7월 만기일로 발행합니다.
주요 경제 조건: 각 $1,000 채권은 LLY의 종가가 초기 주가의 최소 80% 이상일 경우(“쿠폰 장벽”) 분기별로 3.9125% 조건부 쿠폰(연환산 약 15.65%)을 지급할 수 있습니다. 미지급 쿠폰은 이후 평가일에 장벽을 충족하면 소급 지급됩니다. 중간 평가일에 LLY가 초기 가격 이상으로 마감하면 채권은 자동 상환되어 $1,000과 현재 쿠폰을 지급합니다. 조기 상환이 없으면 만기 시 지급액은 (i) 최종 가격이 초기 가격의 80% 이상일 경우 $1,000 + 쿠폰, 또는 (ii) 최종 가격이 80% 미만일 경우 $1,000 + $1,000 × 1.25 × (주가 수익률 + 20%)입니다. 투자자는 20% 보호 범위를 초과하는 손실과 1.25배 레버리지를 부담하며 원금 전액 손실 가능성도 있습니다.
구조적 세부사항: 가격 결정일과 발행일은 각각 2025년 7월 3일과 9일로 예상되며, 중간 평가일은 2025년 10월, 2026년 1월, 4월입니다; CUSIP 17333LGE9. 채권은 무담보, 무후순위, 비상장이며 유동성은 딜러의 의지에 전적으로 의존합니다. 가격 결정일 예상 가치는 $936.50 이상으로, $1,000 발행가보다 낮으며 딜러 마진과 헤지 비용이 반영된 것입니다. CGMI는 채권당 $10 인수 수수료를 받으며(수탁 계좌는 면제), J.P. Morgan 계열사가 배치 대리인 역할을 합니다.
주요 위험: 투자자는 (1) Citigroup 계열사의 신용 위험; (2) 최종 평가일에 LLY가 20% 이상 하락 시 원금 일부 또는 전액 손실 가능성; (3) 장벽 미충족 시 쿠폰 미지급 위험; (4) 조기 상환 위험으로 상승 잠재력과 재투자 기회 제한; (5) 제한적이거나 없는 2차 시장; (6) 비미국 투자자에 대한 30% 원천징수 가능성을 포함한 세무 불확실성에 직면합니다. 이 상품은 LLY 배당금 참여나 쿠폰 수령 이상의 상승 수익을 제공하지 않습니다.
Citigroup Global Markets Holdings Inc., entièrement garanti par Citigroup Inc., propose des Obligations Senior Phoenix Autocallables à Moyen Terme (Série N) liées aux actions ordinaires de Eli Lilly & Co. (LLY), arrivant à échéance en juillet 2026.
Principaux éléments économiques : Chaque obligation de 1 000 $ peut verser un coupon trimestriel conditionnel de 3,9125% (soit environ 15,65% annualisé) dès que le cours de clôture de LLY à une date d’évaluation intermédiaire ou finale est au moins égal à 80% du prix initial de l'action (la « barrière du coupon »). Les coupons non versés peuvent être rattrapés si une date d’évaluation ultérieure respecte la barrière. Si, à une date d’évaluation intermédiaire, LLY clôture au prix initial ou au-dessus, l’obligation est remboursée automatiquement à 1 000 $ plus le coupon en cours. En l’absence de remboursement anticipé, le paiement à l’échéance est : (i) 1 000 $ + coupon si le prix final est ≥ 80% du prix initial ; ou (ii) 1 000 $ + 1 000 $ × 1,25 × (performance de l’action + 20%) si le prix final est inférieur à 80%. Les investisseurs supportent donc des pertes au-delà d’une marge de protection de 20% avec un effet de levier de 1,25× et peuvent perdre la totalité de leur capital.
Détails structurels : Les dates de prix et d’émission sont prévues respectivement les 3 et 9 juillet 2025 ; les dates d’évaluation intermédiaires sont octobre 2025, janvier 2026 et avril 2026 ; CUSIP 17333LGE9. Les obligations sont non sécurisées, non subordonnées et non cotées ; la liquidité dépendra uniquement de la volonté des teneurs de marché. La valeur estimée à la date de prix est projetée à ≥ 936,50 $, inférieure au prix d’émission de 1 000 $, reflétant les marges des teneurs et les coûts de couverture. CGMI perçoit une commission de souscription de 10 $ par obligation (exonérée pour les comptes fiduciaires) ; des entités J.P. Morgan agissent comme agents de placement.
Principaux risques : les investisseurs sont exposés à (1) un risque de crédit des entités Citigroup ; (2) une perte partielle ou totale du capital si LLY baisse de plus de 20% à l’évaluation finale ; (3) un non-paiement des coupons si les barrières sont franchies ; (4) un risque de remboursement anticipé limitant le potentiel de hausse et les options de réinvestissement ; (5) un marché secondaire limité ou inexistant ; (6) une incertitude fiscale, incluant une retenue à la source potentielle de 30% pour les détenteurs non américains. Le produit n’offre aucune participation aux dividendes de LLY ni de gains au-delà des coupons.
Citigroup Global Markets Holdings Inc., vollständig garantiert von Citigroup Inc., bietet Autocallable Phoenix Medium-Term Senior Notes (Serie N) an, die an die Stammaktien von Eli Lilly & Co. (LLY) gekoppelt sind und im Juli 2026 fällig werden.
Wesentliche wirtschaftliche Merkmale: Jede $1.000-Anleihe kann eine vierteljährliche bedingte Kuponzahlung von 3,9125% (ca. 15,65% p.a.) leisten, wenn der Schlusskurs von LLY an einem Zwischen- oder Endbewertungstag mindestens 80% des Anfangspreises der Aktie (die „Kupon-Schwelle“) erreicht. Verpasste Kupons können nachgeholt werden, wenn ein späterer Bewertungstag die Schwelle erfüllt. Schließt LLY an einem Zwischenbewertungstag auf oder über dem Anfangspreis, wird die Anleihe automatisch zurückgezahlt mit $1.000 plus dem aktuellen Kupon. Ohne vorzeitige Rückzahlung beträgt die Rückzahlung bei Fälligkeit: (i) $1.000 + Kupon, wenn der Endpreis ≥ 80% des Anfangspreises ist; oder (ii) $1.000 + $1.000 × 1,25 × (Aktienrendite + 20%), wenn der Endpreis unter 80% liegt. Anleger tragen somit Verluste über eine 20%-Pufferzone hinaus mit einem Hebel von 1,25× und können ihr gesamtes Kapital verlieren.
Strukturelle Details: Preis- und Emissionstermine sind voraussichtlich der 3. bzw. 9. Juli 2025; Zwischenbewertungstermine sind Oktober 2025, Januar 2026 und April 2026; CUSIP 17333LGE9. Die Notes sind ungesichert, nicht nachrangig und nicht börsennotiert; die Liquidität hängt ausschließlich von der Bereitschaft der Händler ab. Der geschätzte Wert am Preistag wird auf ≥ $936,50 prognostiziert, unter dem Ausgabepreis von $1.000, was Händler-Margen und Absicherungskosten widerspiegelt. CGMI erhält eine Zeichnungsgebühr von $10 pro Note (für Treuhandkonten entfällt diese); J.P. Morgan-Einheiten fungieren als Platzierungsagenten.
Hauptsächliche Risiken: Anleger sind ausgesetzt an (1) Kreditrisiko der Citigroup-Einheiten; (2) möglichem teilweisem oder vollständigem Kapitalverlust, falls LLY am Endbewertungstag mehr als 20% fällt; (3) Nichtzahlung von Kupons bei Überschreiten der Schwellenwerte; (4) Risiko der vorzeitigen Rückzahlung, das Aufwärtspotenzial und Reinvestitionsmöglichkeiten einschränkt; (5) begrenztem oder keinem Sekundärmarkt; (6) steuerlicher Unsicherheit, einschließlich möglicher 30% Quellensteuer für Nicht-US-Inhaber. Das Produkt bietet keine Beteiligung an LLY-Dividenden oder Aufwärtspotenzial über die Kuponzahlungen hinaus.
Filed Pursuant to Rule 433
Registration Statement No. 333-285508
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Bank of Montreal Market Linked Securities |
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Market Linked Securities—Leveraged Upside Participation to a Cap and Contingent Downside Principal at Risk Securities Linked to the S&P 500® Index due February 5, 2030 Term Sheet to Preliminary Pricing Supplement dated June 30, 2025 |
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Summary of Terms |
Hypothetical Payout Profile*** |
| Issuer: | Bank of Montreal |
| Market Measure: | S&P 500® Index (the “Underlier”) |
| Pricing Date*: | July 31, 2025 |
| Issue Date*: | August 5, 2025 |
| Face Amount and Original Offering Price: |
$1,000 per security |
| Maturity Payment Amount (per security): |
· if the ending value is greater than the starting value: $1,000 plus the lesser of: (i) $1,000 × underlier return × upside participation rate; and (ii) the maximum return; · if the ending value is less than or equal to the starting value, but greater than or equal to the threshold value: $1,000; or · if the ending value is less than the threshold value: $1,000 + ($1,000 × underlier return) |
| Stated Maturity Date*: |
February 5, 2030 |
| Starting Value: | The closing value of the Underlier on the pricing date |
| Ending Value: | The closing value of the Underlier on the calculation day |
| Maximum Return: |
At least 51.60% of the face amount per security, to be determined on the pricing date |
| Threshold Value: | 75% of the starting value |
| Upside Participation Rate: |
150% |
| Underlier Return: | (ending value – starting value) / starting value |
| Calculation Day*: | January 31, 2030 |
| Calculation Agent: | BMO Capital Markets Corp. (“BMOCM”), an affiliate of the issuer |
| Denominations: | $1,000 and any integral multiple of $1,000 |
| Agent Discount**: | Up to 3.325% for Wells Fargo Securities, LLC (“WFS”). Of that agent discount, Wells Fargo Advisors (“WFA”), may receive a selling concession of up to 2.75% and a distribution expense fee of up to 0.075% |
| CUSIP: | 06376ENH1 |
| Material Tax Consequences: |
See the preliminary pricing supplement. |
*subject to change
** In addition, selected dealers may receive a fee of up to 0.20% for marketing and other services
***assumes a maximum return equal to the lowest possible maximum return that may be determined on the pricing date.
If the ending value is less than the threshold value, you will have full downside exposure to the decrease in the value of the Underlier from the starting value and will lose more than 25%, and possibly all, of the face amount of your securities at maturity.
On the date of the accompanying preliminary pricing supplement, the estimated initial value of the securities is $956.60 per security. The estimated initial value of the securities at pricing may differ from this value but will not be less than $910.00 per security. However, as discussed in more detail in the accompanying preliminary pricing supplement, the actual value of the securities at any time will reflect many factors and cannot be predicted with accuracy. See “Estimated Value of the Securities” in the accompanying preliminary pricing supplement.
Preliminary Pricing Supplement:
sec.gov/Archives/edgar/data/927971/000121465925009790/u626250424b2.htm
The securities have complex features and investing in the securities involves risks not associated with an investment in conventional debt securities. See “Selected Risk Considerations” in this term sheet and the accompanying preliminary pricing supplement and “Risk Factors” in the accompanying product supplement.
This introductory term sheet does not provide all of the information that an investor should consider prior to making an investment decision.
Investors should carefully review the accompanying preliminary pricing supplement, product supplement, underlying supplement, prospectus supplement and prospectus before making a decision to invest in the securities.
NOT A BANK DEPOSIT AND NOT INSURED OR GUARANTEED BY THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY
Selected Risk Considerations
The risks set forth below are discussed in detail in the “Selected Risk Considerations” section in the accompanying preliminary pricing supplement and the “Risk Factors” section in the accompanying product supplement. Please review those risk disclosures carefully.
Risks Relating To The Securities Generally
| · | If The Ending Value Is Less Than The Threshold Value, You Will Lose More Than 25%, And Possibly All, Of The Face Amount Of Your Securities At Maturity. |
| · | Your Return Will Be Limited To The Maximum Return And May Be Lower Than The Return On A Direct Investment In The Securities Included In The Underlier. |
| · | The Securities Do Not Pay Interest. |
| · | The Securities Are Subject To Credit Risk. |
| · | The U.S. Federal Income Tax Consequences Of An Investment In The Securities Are Unclear. |
| · | The Stated Maturity Date May Be Postponed If The Calculation Day Is Postponed. |
Risks Relating To The Estimated Value Of The Securities And Any Secondary Market
| · | The Estimated Value Of The Securities On The Pricing Date, Based On Our Proprietary Pricing Models, Will Be Less Than The Original Offering Price. |
| · | The Terms Of The Securities Are Not Determined By Reference To The Credit Spreads For Our Conventional Fixed-Rate Debt. |
| · | The Estimated Value Of The Securities Is Not An Indication Of The Price, If Any, At Which WFS Or Any Other Person May Be Willing To Buy The Securities From You In The Secondary Market. |
| · | The Value Of The Securities Prior To Stated Maturity Will Be Affected By Numerous Factors, Some Of Which Are Related In Complex Ways. |
| · | The Securities Will Not Be Listed On Any Securities Exchange And We Do Not Expect A Trading Market For The Securities To Develop. |
Risks Relating To The Underlier
| · | The Maturity Payment Amount Will Depend Upon The Performance Of The Underlier And Therefore The Securities Are Subject To The Following Risks, Each As Discussed In More Detail In The Accompanying Product Supplement. |
| o | Investing In The Securities Is Not The Same As Investing In The Underlier. |
| o | Historical Values Of The Underlier Should Not Be Taken As An Indication Of The Future Performance Of The Underlier During The Term Of The Securities. |
| o | Changes That Affect The Underlier May Adversely Affect The Value Of The Securities And The Maturity Payment Amount. |
| o | We Cannot Control Actions By Any Of The Unaffiliated Companies Whose Securities Are Included In The Underlier. |
| o | We And Our Affiliates Have No Affiliation With The Underlier Sponsor And Have Not Independently Verified Its Public Disclosure Of Information. |
Risks Relating To Conflicts Of Interest
| · | Our Economic Interests And Those Of Any Dealer Participating In The Offering Are Potentially Adverse To Your Interests. |
The Issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this document relates. Before you invest, you should read the prospectus in that registration statement and the other documents that the Issuer has filed with the SEC for more complete information about us and this offering. You may obtain these documents free of charge by visiting the SEC’s website at http://www.sec.gov. Alternatively, the Issuer will arrange to send to you the prospectus (as supplemented by the prospectus supplement) if you request it by calling the Issuer’s agent toll-free at 1-877-369-5412.
Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC, members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.
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FAQ
What contingent coupon does Citigroup's Autocallable Note pay?
When can the notes be automatically redeemed early?
How much downside protection is provided at maturity?
Are the securities listed on an exchange?
Why is the estimated value less than the $1,000 issue price?
What are the main tax considerations for investors?
