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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.

  1. 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.
  2. 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


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