Citigroup Global Markets Holdings Inc. Issues Autocallable Contingent Coupon Securities Linked to Alphabet and NVIDIA with High Yield Potential

Details of the New Securities Offering

Citigroup Global Markets Holdings Inc. has filed a pricing supplement for medium-term senior notes, specifically autocallable contingent coupon equity-linked securities associated with Alphabet Inc. and NVIDIA Corporation. This issuance targets investors seeking potentially higher yields with inherent risks tied to the underlying assets.

Each security is issued with a principal amount of $1,000 and matures on July 26, 2029, unless redeemed earlier. Investors may receive contingent periodic coupon payments dependent on the performance of the linked stocks.

Coupon Structure and Yield Expectations

The securities offer contingent coupon payments with an annualized yield of approximately 19.10%, based on the performance of the worst-performing underlying asset. Coupon payments are made if the closing value of the lowest-performing stock remains above its coupon barrier on valuation dates.

If the closing value falls below the barrier, no coupon is paid for that period. This structure presents attractive yield potential but carries the risk of reduced returns compared to traditional debt instruments.

Investment Risks to Consider

Investors should understand the risks linked to autocallable contingent coupon securities, as returns depend on the performance of the worst-performing underlying asset—either Alphabet Inc. or NVIDIA Corporation. Poor performance by either company could negatively impact investment returns.

Liquidity risk is also a factor, as these securities may have limited or no liquidity, potentially restricting investors’ ability to sell before maturity.

Automatic Early Redemption Feature Explained

The securities include an automatic early redemption provision. If on any autocall date the closing value of the worst-performing underlying asset is equal to or exceeds its initial value, the securities will be redeemed early. Investors will receive their principal plus any applicable contingent coupon payments.

This feature can expedite return of capital but may limit total yield if the securities are called before maturity, causing investors to miss future coupon payments.

Valuation Dates and Maturity Schedule

Valuation dates are scheduled periodically up to maturity, including August 24, 2026, September 22, 2026, and continuing through the final valuation on July 23, 2029. These dates determine coupon eligibility.

The securities mature on July 26, 2029, with principal repayment contingent on the worst-performing underlying asset’s value at that time if not redeemed earlier.

Underwriting and Financial Details

Citigroup Global Markets Inc., an affiliate of the issuer, serves as the principal underwriter, charging a $7.00 fee per security sold. After underwriting fees, the issuer expects net proceeds of approximately $307,830.00.

This fee structure influences the net funds raised through the offering and the valuation of the securities.

Investor Guidance and Market Context

Prospective investors should closely track Alphabet Inc. and NVIDIA Corporation’s stock performance, as it directly impacts returns. Given tech sector volatility, thorough due diligence is advised.

The immediate market impact of this announcement remains unclear, prompting investors to evaluate broader market sentiment before investing.

Summary and Investment Outlook

Citigroup Global Markets Holdings Inc.’s issuance of autocallable contingent coupon securities linked to Alphabet and NVIDIA offers a distinctive investment opportunity with potential high yields. However, risks including possible lower returns and liquidity limitations must be carefully weighed.

Investors should assess their risk tolerance and remain informed about the underlying assets’ performance to make well-informed investment decisions regarding these securities.