Interest Rate Citibank by itg11192


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									For Immediate Release
Citigroup Inc. (NYSE symbol: C)
28 September 2005

Citibank scored another first by introducing the innovative home loan that offers
    protection against interest rate hikes, and pays customers when rates fall

 The package known as the new Citibank Home Saver loan combines the benefits of
the longest fixed-rate tenor (5-year) in the market, and potential annual bonus payouts

Singapore – Citibank Singapore Ltd scored another first by introducing the only home
loan that offers customers protection against interest rate hikes, as well as paying
customers when rates fall below a predetermined level. With the longest fixed-rate
tenor of 5 years, the new Citibank Home Saver loan removes the uncertainty of interest
rate movements for a longer period, thus helping customers protect themselves from a
rising interest rate environment.

Over the past 15 years, 6-month SIBOR rates have fluctuated between 10% and 0.7%.
Fixed-rate financing packages offer customers the certainty of interest payments over a
period of time. The longest fixed-rate tenor currently available in the Singapore market
is 3 years. Citibank’s latest innovation goes one step further by prolonging the fixed-
rate tenor to 5 years.

Mr Tan Chia Seng, Citibank Singapore’s Business Director for Secured Assets Group,
said, “With the new Citibank Home Saver loan, we are effectively addressing the needs
of customers who are concerned about the vagaries of interest rate movements. Our
5-year fixed rate package brings together the best of both worlds, giving our customers
tangible benefits. For those who want to ‘lock-in’ interest rates now, for a longer
period, before rates rise again, they can have the peace of mind that their monthly
interest expenses and installments will be predictable in a rising rate environment. At
the same time, should interest rates fall below a predetermined base rate, they are also
rewarded with annual bonus payouts.”

The new Citibank Home Saver loan covers both financing of home loans up to 80%
and 90% financing quantum. For loans up to 80% and 90% financing quantum, it
offers a 5-year protection against rises in interest rate, by offering a fixed rate of 3.85%
p.a. and 4.5% p.a. respectively, throughout the 5-year period. In both cases,
customers get to enjoy bonus payouts if the 6-month SIBOR (Singapore Interbank
Offer Rate) falls below the predetermined base rate of 1.75%.

Details of packages:

 The new        Citibank   Home   Years 1 to   5-yr Avg     Fixed-       Potential
 Saver loan                       5                         rate         Bonus Payout
 Upto 80% of financing quantum    3.85%        3.85%        5 years

 Upto 90% of financing quantum    4.50%        4.50%        5 years


If the 6-month SIBOR falls below the pre-determined base rate of 1.75%, customers
will enjoy an Annual Bonus (calculated on a daily basis but paid out annually). The
daily calculation is as follows:

                [ (1.75% - 6-month SIBOR)*net loan amount ] / 365 days

For example, a customer with a net loan of S$500,000, will enjoy a bonus payout of
S$3,625 for the year, if the 6-month SIBOR falls to 0.7% for 252 market days.

The new Citibank Home Saver loan comes with a comprehensive suite of options to
give added flexibility to customers. These include:

o   option to switch to a floating-rate package by paying conversion fees of 0.75% on
    the outstanding loan amount
o   option to replace existing property (financed by Citibank) with another, if existing
    property is redeemed after loan disbursement against this replacement property
o   option to prepay partially by paying 1.5% on the prepaid amount
o   option to prepay fully by paying 1.5% on the outstanding loan amount and fully
    reimbursing legal subsidy

“We launched this product after carefully listening to customer feedback, and
evaluating the current market and interest rate environment. The new Citibank Home
Saver loan is a timely innovation, and will add to the choices our customers have in
choosing the right home loan package that meets their needs“, concluded Mr Tan.


About Citigroup Inc.

Citibank is a member of Citigroup (NYSE: C), the preeminent global financial services
company with some 200 million customer accounts in more than 100 countries, which
provides 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, and Banamex. Additional information may be found at:

Certain statements in this document are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act. These statements are based
on management’s current expectations and are subject to uncertainty and changes in
circumstances. Actual results may differ materially from those included in these
statements due to a variety of factors. More information about these factors is
contained in Citigroup’s filings with the Securities and Exchange Commission.

Media Contacts:

Adam Abdur Rahman
Tel: +65 6328 5425

Roger Pua
Tel: +65 6328 5741


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