CITIBANK SHARE FINANCING

Maximise.

Potential opportunities.

Maximise. Potential opportunities.

Citibank Equity Investment Financing (EIF) offers you the financial flexibility in meeting your needs. It's never been easier to manage your cash flow.

  • Charge Up Your Investment Power to the Fullest

    Citibank Equity Investment Financing provides you with extra funds of up to 70% financing or up to 3.33 times of your cash outlay for your investment (collateral can include cash, time deposits and marginable securities).

  • Increase Your Cash Flow For Your Personal Use

    Simply pledge your fully paid-up shares as collateral and enjoy the financing flexibility of withdrawing cash against it.

  • Dedicated Service by Relationship Managers

    A team of dedicated Relationship Managers will take care of all matters relating to your share financing needs.

APPLY

For further queries: Please call Equity Investment Hotline at 6223 3221.

Benefits

Flexible Trading Platform

Trade conveniently with your existing SGX registered broker.

Financing Flexibility

Flexibility to choose between a flat or tiered (0% fee-based) interest rate package to suit your financial needs.

Dedicated Service by Relationship Managers

A team of dedicated Relationship Managers will take care of all matters relating to your share financing needs.

Earn Extra Cash with Daily Interest

Make the most of your savings with Citibank Equity Investment Financing by earning daily interest on your cash balances in your account.

24-Hour CitiPhone Service

Our dedicated CitiPhone Hotline operates 24 hours and is just a phone call away to answer your account enquiries.

Learn More

For further queries: Please call Equity Investment Hotline at 6223 3221.

Features

With Citibank Equity Investment Financing, you may obtain a margin trading facility which you can utilize to purchase shares listed on the Singapore Exchange Securities Trading Limited ("SGX") of up to 3.33 times your cash outlay or 2.33 times your pledged assets1.

Type of Pledged Assets Cash Marginable Securities
Trading Line2 Up to 3.33x Up to 2.33x

In addition, Citibank Equity Investment Financing can help you manage your cash flow to meet your personal or financial objectives. You may enjoy the flexibility of withdrawing cash up to 70% of the value of your pledged assets1,2.

Portfolio Value2 Cash Withdrawal
SGD 100,000 Up to 70,000

Notes:

1Pledged assets must be in the form of Time Deposits and/or marginable securities as approved by Citibank from time to time.

2The value of your portfolio of marginable securities pledged to Citibank and the trading line granted to you shall be determined by Citibank at its absolute discretion.

Scenarios

The following scenarios demonstrate how Citibank Share Financing lets you enjoy the convenience of a standby trading line, and how you can maximize your investment power with our competitive financing.

Scenario A:
You wish to borrow cash @ 70% financing against S$100,000 worth of pledged marginable securities.
Loan / Securities =X / $100,000
= $70,000 / $100,000
= 70%
i.e. S$70,000
Scenario B:
You wish to buy shares @ 70% financing against S$100,000 worth of pledged marginable securities.
Loan / Securities = X / (X + $100,000)
= $233,333 / ($233,333 + $100,000)
= $233,333 / $333,333
= 70%
i.e. S$233,333
Scenario C:
You wish to borrow cash @ 50% financing against S$100,000 worth of marginable securities.
Loan / Securities = X / $100,000
= $50,000 / $100,000
= 50%
i.e. S$50,000
In addition, you wish to buy additional securities up to 70% financing against earlier position.
Loan / Securities = (X + $50,000) / (X + $100,000)
= ($66,666 + $50,000) / ($66,666 + $100,000)
= $116,666 / $166,666
= 70%
i.e. S$66,666
Scenario D:
Assuming your securities portfolio value drops from S$166,666 to S$155,555. Bank will margin call you to regularise your position.
Loan / Securities = $116,666 / $155,555
= 75%

You will have to regularise your position back to 70%. You can either:

Option 1: Do a cash top up of S$7,777. This will reduce your loan from S$116,666 to S$108,889.

Loan / Securities = ($116,666 - $7,777) / $155,555
= $108,889 / $155,555
= 70%
Option 2: Pledge additional marginable securities of S$11,111. This will increase the value of your marginal securities from S$155,555 to S$166,666.
Loan / Securities = $116,666 / ($155,555 + $11,111)
= $116,666 / $166,666
= 70%
Option 3: To sell out securities worth $25,923.
Loan / Securities = ($116,666 - 25,923) / ($155,555 - $25,923)
= $90,743 / $129,632
= 70%
Scenario E:

Assuming you top up with cash and regularise your account back to 70%. Subsequently, your portfolio value increases from S$155,555 to S$180,000. The following options will be available to you.

Option 1: Maximum cash withdrawal allowed:

Loan / Securities = ($108,889 + X) / $180,000
= ($108,889 + $17,111) / $180,000
= $126,000 / $180,000
= 70%
i.e. S$17,111

Option 2: Maximum securities trading limit i.e. amount to buy additional shares will be:

Loan / Securities = ($108,889 + X) / ($180,000 + X)
= ($108,889 + $57,037) / ($180,000 + 57,037)
= $165,926 / $237,037
= 70%
i.e. S$57,037
What Are Your Risks?

It is important that you fully understand the risks involved in margin trading.

Citibank Equity Investment Financing offers you a line of credit, which you may use for the purchase of securities or allows you to pledge securities which are approved by Citibank Singapore Limited ("Citibank") as marginable securities to borrow funds. Your pledged securities and/or cash outlay must be of such minimum initial margin as Citibank may require. The use of leverage can lead to large losses as well as gains. Borrowing to fund the purchase of securities (leveraging) can have significant negative impact on the value of and returns on your invested portfolio -- small price movements in securities will have a multiple effect on your corresponding gain or loss and hence a proportionately larger impact on the funds and securities pledged to Citibank as margin. Consequently, the margin provided by you may fall below the amount required by Citibank. You may sustain a total loss of your margin and any additional funds deposited with Citibank to maintain your position. You may also incur further liability to Citibank and sustain further or additional losses.

If the value of securities held as collateral falls below the amount required by Citibank, you will be required to provide additional funds or place additional securities as collateral at short notice. If the required funds or securities are not provided within the prescribed time, your securities may be liquidated. You shall remain liable for any deficit in your Citibank Equity Investment Financing Account.

Whilst we have set out some risks involved with Citibank Equity Investment Financing in this website, this website cannot and does not disclose all risks or other significant aspects of Citibank Equity Investment Financing and does not detract from your responsibility of accepting this line of credit and securities financing only on a fully informed basis. Accordingly and prior to opening a Citibank Equity Investment Financing Account, you should consult with your own legal, regulatory, tax, financial and accounting advisors and make your own investment decisions (including decisions regarding the suitability of this product) based upon your own judgment and advice from your advisors.

In the event that you choose not to seek advice from a legal, regulatory, tax, financial or accounting advisor, you should carefully consider whether this product is suitable for you in light of your specific investment objectives, financial means and risk profile.

Unless otherwise expressly agreed by Citibank in writing, Citibank is not your financial advisor and does not assume any advisory, fiduciary or other similar duties to you.

Citibank full disclaimers, terms and conditions apply to individual products and banking services.

Please contact us at 6223 3221 for further information.

Risk Management Tools

It is important that you fully understand the risks involved in trading securities on share financing (margin financing) or maintaining a margin balance.

To help mitigate some of these risks, please refer to the list of securities assessed by the Bank as acceptable collateral for your Equity Investment Financing Account.

Citibank Marginable Securities List: (PDF document attachment)