Citibank Portfolio Finance is a facility that allows you to borrow against your existing Pledged Assets* to invest in Investment Products**. The facility can be structured as a time loan*** on a fixed rate basis in a wide selection of currencies or as a revolving line of credit***
Right for you if:
- Provides liquidity and cash flow when required
- Attractive interest rates*
- Invest without using additional cash**
- Your choice of a major foreign currency loan - USD, SGD, JPY, GBP, EUR, AUD, CHF, CAD, NZD and HKD or Overdraft in USD or SGD.
- Attractive interest rates
- Flexible tenures (for loans only) - 1, 3, 6, 12 months, with option to renew
- Interest rate fixed (for loans only) for the entire tenure of the loan
- Quantum of financing up to 100% of your total time deposit with Citibank.
Please contact your Relationship Manager.
IS CITIBANK PORTFOLIO FINANCE SUITABLE FOR YOU?
Citibank Portfolio Finance is most suitable for you if:
- You wish to enhance your potential investment returns and are willing to take on higher risks.
- You are investing in securities/Investment Products that could pay you regular coupons/dividends. If the coupon payments or dividends are higher than the interest charged on your facility, it can help to offset the cost of your borrowing.
- You have spare cash available. This is because in the event that your investments decline in market value below the stipulated margin call levels, you may be required to pay down a portion of the facility or place additional securities as collateral. Having spare cash available will also mean that you have the ability to pay down the facility should the cost of borrowing rise during the tenure of your investment.
- You should obtain the advice of a licensed or an exempt financial advisor before making a commitment to enter into a Citibank Portfolio Finance transaction. In the event that you choose not to seek advice from a financial advisor, you should carefully consider whether a Citibank Portfolio Finance is suitable for you in light of your investment objectives, financial means and risk profile. When used wisely, Citibank Portfolio Finance could be an effective way to manage your total portfolio.
Important information:Important information:
- Pledged Assets may include your deposits, unit trusts, structured notes, bonds, equities and other investment products as approved by Citibank from time to time.
- Investment Products refer to unit trusts, structured notes, bonds and equities. Citibank is acting as your agent in the purchase of these investments.
- The Citibank Portfolio Finance facility can be structured as a time loan or revolving lines of credit. Your application for Citibank Portfolio Finance is subject to Citibank’s approval. The facility that is approved under Citibank Portfolio Finance is dependent on, among other things, the underlying value of your Pledged Assets as determined by Citibank. Citibank may at its discretion and from time to time, review the facility availed to you. Time loans are available in a wide range of currencies with tenures ranging from 1 month to 1 year. The interest rate is fixed for the tenure of the time loan. You may choose to renew the time loan at the prevailing interest rate no later than 2 days prior to maturity. Interest charged on the time loan is paid on an annual basis or at the maturity of the time loan, whichever occurs first. Early repayment of the time loan may be subjected to pre-termination charges by the bank. Revolving lines of credit are currently available in SGD and USD. Interest rate is subject to change without prior notice. Interest charges on revolving lines of credit will be debited at the end of every month. If you have an available balance on your line of credit, you may choose to roll over the interest charges. Early repayment of revolving lines of credit is not subjected to pre-termination charges.
Investment products are not bank deposits or obligations of or guaranteed by Citibank Singapore Limited, Citigroup Inc., or any of its affiliates or subsidiaries unless specifically stated, and are subject to investment risks, including the possible loss of the principal amount invested. Investment products are not insured products under 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. Investment and Treasury Products are subject to investment risks, including the possible loss of principal amount invested. Past performance is not indicative of future results, prices can go up or down.
You must be aware that whilst gains on your investment may be magnified through Citibank Portfolio Finance, losses to the investment could similarly be magnified. Borrowing against investments may not be suitable for everyone. The risk of loss in Citibank Portfolio Finance may be substantial. You may sustain loss in excess of your initial Pledged Assets. Placing contingent orders, such as
“stop-loss” or “stop-limit” orders, will not necessarily limit losses to the intended amounts. Relatively small price (interest rate) movements in the underlying securities will have a multiplying effect on your corresponding gain or loss and hence have a proportionately larger impact on the Pledged Assets. Market conditions may make it impossible to execute such orders. Losses may then exceed the amount of the capital initially placed by you with the bank as security, and you may be called upon at short notice to deposit additional Pledged Assets. If the required Pledged Assets are not provided within the prescribed time, your position may be liquidated. You shall remain liable for any resulting deficit in your account.
Please note that you will be subject to foreign currency risks when the currency of your facility is different from the currency of your underlying assets and investments. You may experience a loss when you convert the currency of your underlying assets and investments to the currency of the facility to repay the outstanding loan amount. Investors investing in investment products denominated in non-local currency should be aware of the risk of exchange rate fluctuations that may cause a loss of principal when foreign currency is converted back to the home currency. Investors should therefore determine whether any foreign currency investment is suitable for them in the light of their personal investment objectives, financial means and risk profile. Exchange controls may be applicable from time to time to certain foreign currencies. This document does not constitute the distribution of any information or the making of any offer or solicitation by anyone in any jurisdiction in which such distribution or offer is not authorised or to any person to whom it is unlawful to distribute such a document or make such an offer or solicitation. Investment and Treasury products are not available to U.S. persons.
The Facility(ies) mentioned in this Application are not offered to individuals resident in the European Union, European Economic Area, Switzerland, Guernsey, Jersey, Monaco, San Marino, Vatican, The Isle of Man or the UK. This Application is not, and should not be construed as, an offer, invitation or solicitation to apply for the Facility(ies) mentioned herein to such individuals.