Press Release
Citigroup Inc. (NYSE: C)
4th October 2006
Citibank Offers Structured note ALL STARS Linked to Selected Global Stocks
Citibank is offering consumers the opportunity to invest in selected global stocks and a chance to earn attractive yield while minimizing the risk of loss of the invested principle with the new ALL STARS structured note, which offers 100% capital protection at maturity, maximum three-year tenor and the opportunity of early redemption (autocall option) at the end of year one and two after the product’s issue date. The minimum investment is CZK 30,000 and subscriptions can be made until October 23, 2006.
The structured note is linked to the average appreciation of the „Citigroup S&P Global STARS Custom Index“ of international stocks compiled by Standard & Poor’s and Citigroup analysts and comprising 25 respected global companies. With this new product there is no risk of loss of the invested principle provided, that the investment is held until maturity. “The investor will receive 100 per cent of his or her invested amount even if stock markets post negative performance. If, however, the stock markets‘ performance is positive, the bond may get due early and an attractive yield may be paid,“ says Alexandra Talířová, Citibank Investment Products Manager.
Depending on the index’s performance, the investor may withdrawal appreciated funds as early as after one year or two years after the date when the ALL STARS structured note is issued. If the average appreciation for the first 12 months exceeds 10 per cent, investors have a right to receive the entire amount of the principle plus 6% return. „It’s incomparably more than you can earn on your one-year investment into any term deposit, money fund, savings account or any similar product,“ emphasizes Alexandra Talířová. If the note does not get called at the end of first year there is another chance of call back after two years. If the index’s average appreciation, for the first 2 years of the note’s existence, exceeds 20 per cent, the investor has a right to receive, in addition to the amount of the principle, a 12% proceeds. Even if neither of these two scenarios occurs investors will receive back the amount of the invested principle plus the entire average appreciation of the index at maturity.
“The average annual growth in the value of the „Citigroup S&P Global STARS“ index amounted over the last 10-year period to the 12.4 per cent,“said Alexandra Talířová.
The ALL STARS structured note is designed for a wide range of investors. “The investment is suitable for investors who are unwilling to take risks, but who would like to get a higher appreciation of their money than is currently available in bank deposits or other, conservative forms of one‘s investment,“ Alexandra Talířová said.
Citibank offers investment opportunities to investors of any type. “Those of them who are more conservative could in the past earn nicely on investments made into money market funds or the funds focused on traditional fixed income debt papers. However, returns on such investment instruments have fallen down significantly during recent years, because of low interest rates, low inflation and, a low price of bonds. That’s why we have come up with this new product that is suitable for a wide spectrum of potential investors, such products that meet the requirement of the investment’s protection, and, yet are offering a chance to earn attractive potential yield,“ complemented Jiří Báča, Head of Citibank Distribution and Sales.
The Citigroup S&P Global STARS index has been created by Citigroup investment experts together with the reputed Standard & Poor’s rating agency. Out of approximately 1,900 stocks, per exactly determined criteria a total of the 25 best assessed international stock titles have been selected to form the Index. It is compiled so that the risk of any unexpected oscillations in any single region or industry is eliminated.
For more information about Citibank structured debt papers call our CitiPhone – Gold segment – tel: 233 062 323.
For more information please contact:
Markéta Dvořáčková Andrea Machálková
Public Affairs Officer Communications Executive
Tel: 233 061 041 Citibank a.s.
Mobil: +724 356 358 Tel.: 233 062 781
e-mail: -mail:
Note for editors:
Citibank a.s. has been present in the Czech republic since 1991. The Bank has rapidly gained its position of the market leader in corporate banking and, Citibank’s offering of products and services has been gradually enhanced to include also small and medium-sized companies. Citibank a.s. entered the retail banking business in January of 2001 and, a number of products and services are offered to Citibank clients ever since, such as personal accounts, credit cards, personal loans, investing into mutual funds as well as CitiGold, the private banking services. For additional information about Citibank a.s. please refer to the following web site:
Citigroup (NYSE: C), the preeminent global financial services company has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex. Additional information may be found at
1