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.
Key Dates
| Event |
Date |
| Offer Opens |
7 March 2005 |
| Offer Closes |
31 March 2005 at 5pm |
| Issue Date |
5 April 2005 |
| Maturity Date |
4 April 2011 |
Investment Profile
| Minimum Time Horizon (Years) |
1 or Less
|
2
|
3
|
4
|
5+
|
| Risk |
Very Low
|
Low
|
Moderate
|
High
|
Very High
|
| Investment Objective |
Capital Protection
|
Income
|
Income/Growth
|
Growth
|
Enhanced Growth
|
Investment Objectives
| You Seek |
You can Accept |
| Exposure to the Australian resources sector |
A holding period of six years and the possibility that returns could be less than the return you could earn on other investments including the actual return on the basket of shares |
| 100% capital protection at Maturity |
The possibility of losing part of the initial Investment Amount if the MLI is not held to Maturity |
| Potential for capital growth |
The risks similar to those associated with an actual investment in the basket of Australian resource shares |
| A medium-term market-linked investment |
The risks associated with investing in medium-term financial products |
Offer Summary
To view a summary of the Offer click here
Risk Factors
There are a number of risks associated with the MLI and investments in equity markets generally. Some of the key risks include:
- Market Risk & Economic Factors
- Performance of the Reference Shares
- Credit worthiness of the Issuer
- Early Maturity Risk
- Event Risk
- Liquidity Risk
- Interest Rates
- Tax Risk
- Potential conflicts of Interest
A more detailed explanation of the risks associated with an investment in the MLI are set out in the PDS dated 7 March 2005, investors should consider the Risk Factors before making a decision to invest.
More Information
For further information on Structured Financial Products contact the Citigroup Equity Structured Products Service Center.
|
| Phone | : | 1 300 30 70 70. |
| Email | : | australia.warrants@citigroup.com |
| Mail | : | GPO Box 40, Sydney NSW 1027 |
|
