MLI Callable Australian Resource Securities (Series 2005-02)
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Product Summary
This six year AUD Denominated MLI is linked to the performance of a basket of shares in Australian companies, which operate in the resource sector of the economy. The shares of these companies are all presently quoted and tradable on the Australian Stock Exchange (ASX).
| Reference Shares | ASX Code | Bloomberg Code |
|---|---|---|
| Alumina Ltd | AWC | AWC AU |
| BHP Billiton Ltd | BHP | BHP AU |
| Oil Search Ltd | OSH | OSH AU |
| Rio Tinto | RIO | RIO AU |
| Woodside Petroleum Ltd | WPL | WPL AU |
| Zinifex Ltd | ZFX | ZFX AU |
The MLI offers investors receive a Guaranteed Coupon of 10.0% (payable at the end of year 1), and the potential for capital growth of at least 10.0% pa1 (based on the Issue Price) in subsequent years contingent on the performance of the Reference Shares, with 100% capital protection2 on the Maturity Date.
- The actual level of the Capital Growth Rate will be fixed on the Issue Date and is expected to range between 9.0% and 9.50% pa.
- Capital Protection only applies to investments held for the full term until the Maturity Date and provided no Early Maturity Events occur. Capital protection is also subject to the credit worthiness of the Issuer.
Offer Summary
| Series Number | Series 2004-01 | ||||||||||||||||||||||
| Issuer | Citigroup Global Markets Australia Pty Limited ("Issuer" or "CGMA") | ||||||||||||||||||||||
| Reference Shares (the Basket) | Alumina Ltd BHP Billiton Ltd Oil Search Ltd Rio Tinto Ltd Woodside Petroleum Ltd Zinifex Ltd |
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| Offer Opens | 7 March 2005 | ||||||||||||||||||||||
| Offer Closes | 31 March 2005 at 5:00 pm | ||||||||||||||||||||||
| Issue Date | 5 April 2005 | ||||||||||||||||||||||
| Maturity Date | 4 March 2011 | ||||||||||||||||||||||
| Term of Investment | 6 Years, subject to Auto-Call feature | ||||||||||||||||||||||
| Denomination | Australian Dollars (AUD) | ||||||||||||||||||||||
| Investment | Units in the MLI with an Investment Amount of AUD 1.00. Each AUD 1.00 of the Investment Amount will constitute one Unit of the MLI. Please note "Units" when used in this document are not units in a managed investment scheme |
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| Issue Price | AUD 1.00 per Unit | ||||||||||||||||||||||
| Minimum Investment Amount | AUD 10,000 and in multiples of AUD 1,000 above that amount | ||||||||||||||||||||||
| Capital Protection | The Issuer guarantees that the value of each Unit on the earlier of the scheduled Maturity Date or an Auto-Call Date will be at least equal to the Issue Price. | ||||||||||||||||||||||
| Minimum Return | The Issuer has targeted a minimum return of 10.0% (inclusive of the Guaranteed Coupon) over the term of the investment. | ||||||||||||||||||||||
| Threshold Price | In relation to each Reference Share the Threshold Price shall be set at 98% of the respective Initial Share Price. | ||||||||||||||||||||||
| Guaranteed Coupon (Year 1) | At the end of the first year (5 April 2006), Investors will receive a Guaranteed Coupon of 10% on their Investment Amount. This amount is payable on or around 5 April 2006. | ||||||||||||||||||||||
| Capital Growth Rate | Expected to range between 10.0% and 10.5%pa (Subject to the Auto-Call feature being satisfied, the Final Value per Unit will be calculated by reference to the Capital Growth Rate). | ||||||||||||||||||||||
| Auto-Call feature | On any Auto-Call Date where the Early Maturity Condition has been satisfied, the Auto-Call Date will be deemed to be the Early Maturity Date and the Final Value per Unit shall be determined by reference to the Capital Growth Rate. Assuming a Capital Growth Rate of 10.0%pa, the Final Value Per Unit would be:
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| Early Maturity Condition | If on any Auto-Call Date all of the six Reference Shares close above their threshold Price then the Early Maturity Condition will be satisfied and the Issuer must nominate the current Auto-Call Date as the Early Maturity Date | ||||||||||||||||||||||
| Final Value per Unit on the Maturity Date | If the Auto-Call feature has not been triggered prior to the Maturity Date, the Final Value per Unit on the Maturity Date will be:
(a) if on the Maturity Date, any one of the Reference Shares has closed below its Threshold Price, AUD 1.00 per Unit (even if any of the other Reference Shares close at or above their Threshold Price); or (b) if on the Maturity Date, all the Reference Shares have closed above their Threshold Price, AUD 1.50 per Unit (assuming the minimum Capital Growth Rate of 10.0% pa applies) |
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| Delivery Asset | Units in the StreetTRACKS® S&P/ASX 200® Fund | ||||||||||||||||||||||
| Distributor Fees | 3.00% (including GST) of the initial Investment Amount | ||||||||||||||||||||||
| Financial Adviser Fees | Financial Advisers appointed by the Distributor may receive a placement fee and/or annual fee (including GST) based on the initial Investment Amount. These fees will be paid by the Distributor at no additional cost to Investors |
This is a summary only of the terms of the MLI. The actual Terms and Conditions are contained in the Product Disclosure Statement ("PDS") dated 7 March 2005. Investors should read and understand the PDS prior to making any decision to invest.