Risk Factors
The following is a non-exhaustive list of certain
key risk factors for investors in the notes. You should read the risk factors below together with the risk factors included in
the accompanying prospectus supplement and in the documents incorporated by reference in the accompanying prospectus, including
Citigroup Inc.’s most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, which describe
risks relating to our business more generally. We also urge you to consult your investment, legal, tax, accounting and other advisors
in connection with your investment in the notes.
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§
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The notes may be redeemed at our option,
which limits your ability to accrue interest over the full term of the notes. We may redeem the notes, in whole but not in
part, on any redemption date, upon not less than five business days’ notice. In the event that we redeem the notes, you will
receive the principal amount of the notes and any accrued and unpaid interest to but excluding the applicable redemption date.
In this case, you will not have the opportunity to continue to accrue and be paid interest to the maturity date of the notes.
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§
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Market interest rates at a particular
time will affect our decision to redeem the notes. It is more likely that we will call the notes for redemption prior to their
maturity date at a time when the interest rate on the notes is greater than that which we would pay on a comparable debt security
of Citigroup Inc. with a maturity comparable to the remaining term of the notes. Consequently, if we redeem the notes prior to
their maturity, you may not be able to invest in other securities with a similar level of risk that yield as much interest as the
notes.
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§
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An investment
in the notes may be more risky than an investment in notes with a shorter term. By purchasing notes with a relatively long
term, you will bear greater exposure to fluctuations in interest rates than if you purchased a note with a shorter term. In particular,
you may be negatively affected if interest rates begin to rise, because the likelihood that we will redeem your notes will decrease
and the interest rate on the notes may be less than the amount of interest you could earn on other investments with a similar level
of risk available at such time. In addition, if you tried to sell your notes at such time, the value of your notes in any secondary
market transaction would also be adversely affected.
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§
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The notes are subject to the credit
risk of Citigroup Inc., and any actual or anticipated changes to its credit ratings or credit spreads may adversely affect the
value of the notes. You are subject to the credit risk of Citigroup Inc. If Citigroup Inc. defaults on its obligations under
the notes, your investment would be at risk and you could lose some or all of your investment. As a result, the value of the notes
will be affected by changes in the market’s view of Citigroup Inc.’s creditworthiness. Any decline, or anticipated
decline, in Citigroup Inc.’s credit ratings or any increase, or anticipated increase, in the credit spreads charged by the
market for taking Citigroup Inc. credit risk is likely to adversely affect the value of the notes.
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§
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The notes will not be listed on any
securities exchange and you may not be able to sell them prior to maturity. The notes will not be listed on any securities
exchange. Therefore, there may be little or no secondary market for the notes. CGMI currently intends to make a secondary market
in relation to the notes and to provide an indicative bid price for the notes on a daily basis. Any indicative bid price for the
notes provided by CGMI will be determined in CGMI’s sole discretion, taking into account prevailing market conditions and
other relevant factors, and will not be a representation by CGMI that the notes can be sold at that price or at all. CGMI may suspend
or terminate making a market and providing indicative bid prices without notice, at any time and for any reason. If CGMI suspends
or terminates making a market, there may be no secondary market at all for the notes because it is likely that CGMI will be the
only broker-dealer that is willing to buy your notes prior to maturity. Accordingly, an investor must be prepared to hold the notes
until maturity.
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§
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Immediately following issuance, any
secondary market bid price provided by CGMI, and the value that will be indicated on any brokerage account statements prepared
by CGMI or its affiliates, will reflect a temporary upward adjustment. The amount of this temporary upward adjustment will
steadily decline to zero over the temporary adjustment period. See “General Information—Temporary adjustment period”
in this pricing supplement.
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§
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Secondary market sales of the notes
may result in a loss of principal. You will be entitled to receive at least the full stated principal amount of your notes,
subject to the credit risk of Citigroup Inc., only if you hold the notes to maturity or redemption. If you are able to sell your
notes in the secondary market prior to maturity or redemption, you are likely to receive less than the stated principal amount
of the notes.
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§
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The inclusion of underwriting fees
and projected profit from hedging in the issue price is likely to adversely affect secondary market prices. Assuming no changes
in market conditions or other relevant factors, the price, if any, at which CGMI may be willing to purchase the notes in secondary
market transactions will likely be lower than the issue price since the issue price of the notes includes, and secondary market
prices are likely to exclude, any underwriting fees paid with respect to the notes, as well as the cost of hedging our obligations
under the notes. The cost of hedging includes the projected profit that our affiliates may realize in consideration for assuming
the risks inherent in managing the hedging transactions. The secondary market prices for the notes are also likely to be reduced
by the costs of unwinding the related hedging transactions. Our affiliates may realize a profit from the hedging activity even
if the value of the notes declines. In addition, any secondary market prices for the notes may differ from values determined by
pricing models used by CGMI, as a result of dealer discounts, mark-ups or other transaction costs.
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§
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The price at which you may be able
to sell your notes prior to maturity will depend on a number of factors and may be substantially less than the amount you originally
invest. A number of factors will influence the value of the notes in any secondary market that may develop and the price at
which CGMI may be willing to purchase the notes in any such secondary market, including: interest rates in the market and the volatility
of such rates, the time remaining to maturity of the notes, hedging
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activities by our affiliates, any fees and projected hedging
fees and profits, expectations about whether we are likely to redeem the notes and any actual or anticipated changes in the credit
ratings, financial condition and results of Citigroup Inc. The value of the notes will vary and is likely to be less than the issue
price at any time prior to maturity or redemption, and sale of the notes prior to maturity or redemption may result in a loss.
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§
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The U.S. federal tax consequences
of an assumption of the notes are unclear. The notes may be assumed by a successor issuer, as discussed in “Additional
Terms of the Notes.” The law regarding whether or not such an assumption would be considered a taxable modification of the
notes is not entirely clear and, if the Internal Revenue Service (the “IRS”) were to treat the assumption as a taxable
modification, a U.S. Holder would generally be required to recognize gain (if any) on the notes and the timing and character of
income recognized with respect to the notes after the assumption could be affected significantly. You should read carefully the
discussion under “United States Federal Income Tax Considerations” in this pricing supplement. You should also consult
your tax adviser regarding the U.S. federal tax consequences of an assumption of the notes.
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Additional
Terms of the Notes
The notes are intended
to qualify as eligible debt securities for purposes of the Federal Reserve's total loss-absorbing capacity (“TLAC”)
rule. As a result, in the event of a Citigroup Inc. bankruptcy, Citigroup Inc.'s losses and any losses incurred by its subsidiaries
would be imposed first on Citigroup Inc.’s shareholders and then on its unsecured creditors, including the holders of the
notes. Further, in a bankruptcy proceeding of Citigroup Inc. any value realized by holders of the notes may not be sufficient to
repay the amounts owed on the notes. For more information about the consequences of “TLAC” on the notes, you should
refer to the “Citigroup Inc.” section beginning on page 8 of the accompanying prospectus.
Upon at least 15
business days’ notice, any wholly owned subsidiary (the “successor issuer”) of Citigroup Inc. may, without the
consent of any holder of the notes, assume all of Citigroup Inc.’s obligations under the notes, and in such event Citigroup
Inc. shall be released from its obligations under the notes (in each case, except as described below), subject to the following
conditions:
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(a)
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Citigroup Inc.
shall enter into a supplemental indenture under which Citigroup Inc. fully and unconditionally guarantees all payments on the
notes when due, agrees to comply with the covenants described in the section “Description of Debt Securities—Covenants—Limitations
on Liens” and “—Limitations on Mergers and Sales of Assets” in the accompanying prospectus as applied
to itself and retains certain reporting obligations under the indenture;
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(b)
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the successor
issuer shall be organized under the laws of the United States of America, any State thereof or the District of Columbia; and
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(c)
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immediately
after giving effect to such assumption of obligations, no default or event of default shall have occurred and be continuing.
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Upon any such assumption,
the successor issuer shall succeed to and be substituted for, and may exercise every right and power of, Citigroup Inc. under the
notes with the same effect as if such successor issuer had been named as the original issuer of the notes, and Citigroup Inc. shall
be relieved from all obligations and covenants under the notes, except that Citigroup Inc. shall have the obligations described
in clause (a) above. For the avoidance of doubt, the successor issuer shall not be responsible for Citigroup Inc.’s compliance
with the covenants described in clause (a) above.
If a successor
issuer assumes the obligations of Citigroup Inc. under the notes as described above, events of bankruptcy or insolvency or resolution
proceedings relating to Citigroup Inc. will not constitute an event of default with respect to the notes, nor will any breach of
a covenant by Citigroup Inc. (other than payment default). Therefore, if a successor issuer assumes the obligations of Citigroup
Inc. under the notes as described above, events of bankruptcy or insolvency or resolution proceedings relating to Citigroup Inc.
(in the absence of any such event occurring with respect to the successor issuer) will not give holders the right to declare the
notes to be due and payable, and a breach of a covenant by Citigroup Inc. (including the covenants described in the section “Description
of Debt Securities—Covenants—Limitations on Liens” and “—Limitations on Mergers and Sales of Assets”
in the accompanying prospectus), other than payment default, will not give holders the right to declare the notes to be due and
payable. Furthermore, if a successor issuer assumes the obligations of Citigroup Inc. under the notes as described above, it will
not be an event of default under the notes if the guarantee of the notes by Citigroup Inc. ceases to be in full force and effect
or if Citigroup Inc. repudiates the guarantee.
There are no restrictions
on which subsidiary of Citigroup Inc. may be a successor issuer other than as specifically set forth above. The successor issuer
may be less creditworthy than Citigroup Inc. and/or may have no or nominal assets. If Citigroup Inc. is resolved in bankruptcy,
insolvency or other resolution proceedings and the notes are not contemporaneously declared due and payable, and if the successor
issuer is subsequently resolved in later bankruptcy, insolvency or other resolution proceedings, the value you receive on the notes
may be significantly less than what you would have received had the notes been declared due and payable immediately upon certain
events of bankruptcy or insolvency or resolution proceedings relating to Citigroup Inc. or the breach of a covenant by Citigroup
Inc.
The notes are “specified
securities” for purposes of the indenture. The terms set forth above do not apply to all securities issued under the indenture,
but only to the notes offered by this pricing supplement (and similar terms may apply to other securities issued by Citigroup Inc.
that are identified as “specified securities” in the applicable pricing supplement).
You should read
carefully the discussion of U.S. federal tax consequences of any such assumption under “United States Federal Tax Considerations”
in this pricing supplement.
General Information
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Temporary adjustment period:
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For a period of approximately six months following issuance of the notes, the price, if any, at which CGMI would be willing to buy the notes from investors, and the value that will be indicated for the notes on any brokerage account statements prepared by CGMI or its affiliates (which value CGMI may also publish through one or more financial information vendors), will reflect a temporary upward adjustment from the price or value that would otherwise be determined. This temporary upward adjustment represents a portion of the hedging profit expected to be realized by CGMI or its affiliates over the term of the notes. The amount of this temporary upward adjustment will decline to zero on a straight-line basis over the six-month temporary adjustment period. However, CGMI is not obligated to buy the notes from investors at any time. See “Risk Factors—The notes will not be listed on any securities exchange and you may not be able to sell them prior to maturity.”
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U.S. federal income tax considerations:
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The notes will be treated for U.S. federal income tax purposes
as fixed rate debt instruments that are issued without original issue discount.
Under their terms, the notes may be assumed by a successor issuer,
in which case we will guarantee the successor issuer’s payment obligations under the notes. See “Additional Terms of
the Notes.” We intend to treat such an assumption as not giving rise to a taxable modification of the notes. While our counsel,
Davis Polk & Wardwell LLP, believes this treatment of such an assumption is reasonable under current law and based on the expected
circumstances of the assumption, it has not rendered an opinion regarding such treatment in light of the lack of clear authority
addressing the consequences of such an assumption. Provided that an assumption of the notes is not a taxable modification, the
U.S. federal income tax treatment of the notes would not be affected by the assumption. However, if the IRS were to treat an assumption
of the notes as a taxable modification, the timing and character of income recognized with respect to the notes after the assumption
could be affected significantly, depending on circumstances at the time of the assumption. Moreover, a U.S. Holder (as defined
in the accompanying prospectus supplement) would generally be required to recognize gain (if any) with respect to the notes at
the time of the assumption in the same manner as described in the accompanying prospectus supplement in respect of a sale or other
taxable disposition of the notes. You should consult your tax adviser regarding the consequences of an assumption of the notes.
Both U.S. and non-U.S. persons considering an investment
in the notes should read the discussion under “United States Federal Tax Considerations,” and in particular the sections
entitled “United States Federal Tax Considerations—Tax Consequences to U.S. Holders,” “—Tax Consequences
to Non-U.S. Holders” and “—FATCA” in the accompanying prospectus supplement for more information regarding
the U.S. federal income tax consequences of an investment in the notes.
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Trustee:
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The Bank of New York Mellon (as trustee under an indenture dated November 13, 2013) will serve as trustee for the notes.
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Use of proceeds and hedging:
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The net proceeds received from the sale of the notes will be
used for general corporate purposes and, in part, in connection with hedging our obligations under the notes through one or more
of our affiliates.
Hedging activities related to the notes by one or more
of our affiliates involved trading in one or more instruments, such as options, swaps and/or futures, and/or taking positions
in any other available securities or instruments that we may wish to use in connection with such hedging and may include adjustments
to such positions during the term of the notes. It is possible that our affiliates may profit from this hedging activity, even
if the value of the notes declines. Profit or loss from this hedging activity could affect the price at which Citigroup Inc.’s
affiliate, CGMI, may be willing to purchase your notes in the secondary market. For further information on our use of proceeds
and hedging, see “Use of Proceeds and Hedging” in the accompanying prospectus.
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ERISA and IRA purchase considerations:
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Please refer to “Benefit Plan Investor Considerations” in the accompanying prospectus supplement for important information for investors that are ERISA or other benefit plans or whose underlying assets include assets of such plans.
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Fees and selling
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CGMI, an affiliate of Citigroup Inc. and the underwriter
of the sale of the notes, is acting as
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concessions:
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principal and will receive an underwriting fee of up to $10.00 for each note sold in this offering.
The actual underwriting fee will be equal to up to $10.00 for each note sold by CGMI directly to the public and will otherwise
be equal to the selling concession provided to selected dealers, as described in this paragraph. CGMI will pay selected dealers
a selling concession of up to $10.00 for each note they sell.
Additionally, it is possible that CGMI and its affiliates may profit from hedging activity related to this offering, even if the value of the notes declines. You should refer to “Risk Factors” above and the section “Use of Proceeds and Hedging” in the accompanying prospectus.
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Supplemental information regarding plan of distribution; conflicts of interest:
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The terms and conditions set forth in the Amended and Restated
Global Selling Agency Agreement dated April 7, 2017 among Citigroup Inc. and the agents named therein, including CGMI, govern the
sale and purchase of the notes.
The notes will not be listed on any securities exchange.
In order to hedge its obligations under the notes, Citigroup
Inc. has entered into one or more swaps or other derivatives transactions with one or more of its affiliates. You should refer
to the section “General Information—Use of proceeds and hedging” in this pricing supplement and the section “Use
of Proceeds and Hedging” in the accompanying prospectus.
CGMI is an affiliate of Citigroup Inc. Accordingly, the offering
of the notes will conform with the requirements addressing conflicts of interest when distributing the securities of an affiliate
set forth in Rule 5121 of the Conduct Rules of the Financial Industry Regulatory Authority, Inc. Client accounts over which Citigroup
Inc., its subsidiaries or affiliates of its subsidiaries have investment discretion are not permitted to purchase the notes, either
directly or indirectly, without the prior written consent of the client.
See “Plan of Distribution; Conflicts of Interest”
in the accompanying prospectus supplement for more information.
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Paying agent:
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Citibank, N.A. will serve as paying agent and registrar and will also hold the global security representing the notes as custodian for The Depository Trust Company (“DTC”).
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Contact:
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Clients may contact their local brokerage representative.
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We encourage you to also read the accompanying
prospectus supplement and prospectus, which can be accessed via the hyperlink on the cover page of this pricing supplement.
Determination of Interest Payments
On each interest payment date, the amount of each
interest payment will equal (i) the stated principal amount of the notes multiplied by the interest rate, multiplied
by (ii) (180/360). If we call the notes for mandatory redemption on a redemption date that is not also an interest payment
date, the amount of interest included in the payment you receive upon redemption will equal (i) the stated principal amount of
the notes multiplied by the interest rate, multiplied by (ii) (90/360).
Hypothetical Examples
The following examples
illustrate how the payments on the notes will be calculated with respect to various hypothetical interest payment dates and redemption
dates, depending on whether we exercise our right in our sole discretion to redeem the notes on a redemption date or, if we do
not redeem the notes prior to the maturity date, whether the interest payment date is the maturity date. The hypothetical payments
in the following examples are for illustrative purposes only, do not illustrate all possible payments on the notes and may not
correspond to the actual payment for any interest payment date applicable to a holder of the notes. The numbers appearing in the
following examples have been rounded for ease of analysis.
Example
1: The interest payment date is not a redemption date, or it is a redemption date but we choose not to exercise our right to redeem
the notes on that date.
In
this example, we would pay you an interest payment on the interest payment date per note calculated as follows:
($1,000
× 3.00%) × (180/360) = $15.00
Because
the notes are not redeemed on the interest payment date, the notes would remain outstanding and would continue to accrue interest.
Example
2: We elect to exercise our right to redeem the notes on the second redemption date, which is not an interest payment date.
In
this example, we would pay you on the second redemption date the stated principal amount of the notes plus an interest payment
per note calculated as follows:
($1,000
× 3.00%) × (90/360) = $7.50
Therefore,
you would receive a total of $1,007.50 per note (the stated principal amount plus $7.50 of interest) on the second redemption
date. Because the notes are redeemed on the second redemption date, you would not receive any further payments from us.
Example
3: The notes are not redeemed prior to the maturity date and the interest payment date is the maturity date.
In
this example, we would pay you on the maturity date, the stated principal amount of the notes plus an interest payment per
note calculated as follows:
($1,000
× 3.00%) × (180/360) = $15.00
Therefore,
you would receive a total of $1,015.00 per note (the stated principal amount plus $15.00 of interest) on the maturity date,
and you will not receive any further payments from us.
Because
we have the right to redeem the notes prior to the maturity date, there is no assurance that the notes will remain outstanding
until the maturity date. You should expect the notes to remain outstanding after the first redemption date only if the interest
rate payable on the notes is unfavorable to you as compared to other market rates on comparable investments at that time.
Certain Selling Restrictions
Hong Kong Special Administrative
Region
The contents of this pricing supplement and the
accompanying prospectus supplement and prospectus have not been reviewed by any regulatory authority in the Hong Kong Special Administrative
Region of the People’s Republic of China (“Hong Kong”). Investors are advised to exercise caution in relation
to the offer. If investors are in any doubt about any of the contents of this pricing supplement and the accompanying prospectus
supplement and prospectus, they should obtain independent professional advice.
The notes have not been offered or sold and will
not be offered or sold in Hong Kong by means of any document, other than
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(i)
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to persons whose ordinary business is to buy or sell shares or debentures (whether as principal
or agent); or
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(ii)
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to “professional investors” as defined in the Securities and Futures Ordinance (Cap.
571) of Hong Kong (the “Securities and Futures Ordinance”) and any rules made under that Ordinance; or
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(iii)
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in other circumstances which do not result in the document being a “prospectus” as
defined in the Companies Ordinance (Cap. 32) of Hong Kong or which do not constitute an offer to the public within the meaning
of that Ordinance; and
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There is no advertisement, invitation or document
relating to the notes which is directed at, or the contents of which are likely to be accessed or read by, the public of Hong Kong
(except if permitted to do so under the securities laws of Hong Kong) other than with respect to securities which are or are intended
to be disposed of only to persons outside Hong Kong or only to “professional investors” as defined in the Securities
and Futures Ordinance and any rules made under that Ordinance.
Non-insured Product: These notes are not insured
by any governmental agency. These notes are not bank deposits and are not covered by the Hong Kong Deposit Protection Scheme.
Singapore
This pricing supplement and the accompanying prospectus
supplement and prospectus have not been registered as a prospectus with the Monetary Authority of Singapore, and the notes will
be offered pursuant to exemptions under the Securities and Futures Act, Chapter 289 of Singapore (the “Securities and Futures
Act”). Accordingly, the notes may not be offered or sold or made the subject of an invitation for subscription or purchase
nor may this pricing supplement or any other document or material in connection with the offer or sale or invitation for subscription
or purchase of any notes be circulated or distributed, whether directly or indirectly, to any person in Singapore other than (a)
to an institutional investor pursuant to Section 274 of the Securities and Futures Act, (b) to a relevant person under Section
275(1) of the Securities and Futures Act or to any person pursuant to Section 275(1A) of the Securities and Futures Act and in
accordance with the conditions specified in Section 275 of the Securities and Futures Act, or (c) otherwise pursuant to, and in
accordance with the conditions of, any other applicable provision of the Securities and Futures Act. Where the notes are subscribed
or purchased under Section 275 of the Securities and Futures Act by a relevant person which is:
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(a)
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a corporation (which is not an accredited investor (as defined in Section 4A of the Securities
and Futures Act)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more
individuals, each of whom is an accredited investor; or
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(b)
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a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments
and each beneficiary is an individual who is an accredited investor, securities (as defined in Section 239(1) of the Securities
and Futures Act) of that corporation or the beneficiaries’ rights and interests (howsoever described) in that trust shall
not be transferable for 6 months after that corporation or that trust has acquired the relevant securities pursuant to an offer
under Section 275 of the Securities and Futures Act except:
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(i)
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to an institutional investor or to a relevant person defined in Section 275(2) of the Securities
and Futures Act or to any person arising from an offer referred to in Section 275(1A) or Section 276(4)(i)(B) of the Securities
and Futures Act; or
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(ii)
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where no consideration is or will be given for the transfer; or
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(iii)
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where the transfer is by operation of law; or
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(iv)
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pursuant to Section 276(7) of the Securities and Futures Act; or
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(v)
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as specified in Regulation 32 of the Securities and Futures (Offers of Investments) (Shares and
Debentures) Regulations 2005 of Singapore.
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Any notes referred to herein may not be registered
with any regulator, regulatory body or similar organization or institution in any jurisdiction.
The notes are Specified Investment Products (as
defined in the Notice on Recommendations on Investment Products and Notice on the Sale of Investment Product issued by the Monetary
Authority of Singapore on 28 July 2011) that is neither listed nor quoted on a securities market or a futures market.
Non-insured Product: These notes are not insured
by any governmental agency. These notes are not bank deposits. These notes are not insured products subject to the provisions of
the Deposit Insurance and Policy Owners’ Protection Schemes Act 2011 of Singapore and are not eligible for deposit insurance
coverage under the Deposit Insurance Scheme.
Prohibition of Sales to EEA Retail
Investors
The notes may not be offered, sold or otherwise
made available to any retail investor in the European Economic Area. For the purposes of this provision:
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a)
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the expression “retail investor” means a person who is one (or more) of the following:
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(i)
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a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended,
“MiFID II”); or
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(ii)
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a customer within the meaning of Directive 2002/92/EC, where that customer would not qualify
as a professional client as defined in point (10) of Article 4(1) of MiFID II; or
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(iii)
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not a qualified investor as defined in Directive 2003/71/EC; and
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b)
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the expression “offer” includes the communication in any form and by any means of
sufficient information on the terms of the offer and the notes offered so as to enable an investor to decide to purchase or subscribe
the notes.
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Validity
of the Notes
In the opinion
of Davis Polk & Wardwell LLP, as special products counsel to Citigroup Inc., when the notes offered by this pricing supplement
have been executed and issued by Citigroup Inc. and authenticated by the trustee pursuant to the indenture, and delivered against
payment therefor, such notes will be valid and binding obligations of Citigroup Inc., enforceable in accordance with their terms,
subject to applicable bankruptcy, insolvency and similar laws affecting creditors' rights generally, concepts of reasonableness
and equitable principles of general applicability (including, without limitation, concepts of good faith, fair dealing and the
lack of bad faith), provided that such counsel expresses no opinion as to the effect of fraudulent conveyance, fraudulent transfer
or similar provision of applicable law on the conclusions expressed above. This opinion is given as of the date of this pricing
supplement and is limited to the laws of the State of New York, except that such counsel expresses no opinion as to the application
of state securities or Blue Sky laws to the notes.
In giving
this opinion, Davis Polk & Wardwell LLP has assumed the legal conclusions expressed in the opinion set forth below of Barbara
Politi, Assistant General Counsel–Capital Markets of Citigroup Inc. In addition, this opinion is subject to the assumptions
set forth in the letter of Davis Polk & Wardwell LLP dated May 17, 2018, which has been filed as an exhibit to a Current Report
on Form 8-K filed by Citigroup Inc. on May 17, 2018, that the indenture has been duly authorized, executed and delivered by, and
is a valid, binding and enforceable agreement of the trustee and that none of the terms of the notes nor the issuance and delivery
of the notes, nor the compliance by Citigroup Inc. with the terms of the notes, will result in a violation of any provision of
any instrument or agreement then binding upon Citigroup Inc. or any restriction imposed by any court or governmental body having
jurisdiction over Citigroup Inc.
In the opinion
of Barbara Politi, Assistant General Counsel–Capital Markets of Citigroup Inc., (i) the terms of the notes offered by this
pricing supplement have been duly established under the indenture and the Board of Directors (or a duly authorized committee thereof)
of Citigroup Inc. has duly authorized the issuance and sale of such notes and such authorization has not been modified or rescinded;
(ii) Citigroup Inc. is validly existing and in good standing under the laws of the State of Delaware; (iii) the indenture has been
duly authorized, executed and delivered by Citigroup Inc.; and (iv) the execution and delivery of such indenture and of the notes
offered by
this pricing supplement by Citigroup Inc., and the performance by Citigroup Inc. of its obligations thereunder, are
within its corporate powers and do not contravene its certificate of incorporation or bylaws or other constitutive documents. This
opinion is given as of the date of this pricing supplement and is limited to the General Corporation Law of the State of Delaware.
Barbara Politi,
or other internal attorneys with whom she has consulted, has examined and is familiar with originals, or copies certified or otherwise
identified to her satisfaction, of such corporate records of Citigroup Inc., certificates or documents as she has deemed appropriate
as a basis for the opinions expressed above. In such examination, she or such persons has assumed the legal capacity of all natural
persons, the genuineness of all signatures (other than those of officers of Citigroup Inc.), the authenticity of all documents
submitted to her or such persons as originals, the conformity to original documents of all documents submitted to her or such persons
as certified or photostatic copies and the authenticity of the originals of such copies.