Citibank plans market-linked CDs tied to commodities, indexes

By Toni Weeks

San Diego, May 27 - Citibank, NA plans to price principal-protected market-linked certificates of deposit due June 24, 2016 linked to an equally weighted basket of seven commodities and three commodity indexes, according to a disclosure supplement.

The basket consists of silver, platinum, copper, cotton, corn, soybeans, gasoline, the S&P GSCI Brent Crude Oil Excess Return index, the S&P GSCI Natural Gas Excess Return index and the S&P GSCI Livestock Excess Return index.

The notes will pay a coupon each year equal to the sum of the weighted component returns of the basket components, subject to a floor of zero. If a commodity's return is positive, its component return will be set to a fixed return of 9% to 11%. The actual coupon will be set at pricing. If a commodity's return is negative, its component return will be the greater of the commodity return and negative 20%.

The payment at maturity will be par plus the final coupon, if any.

The CDs (Cusip: 172986DE8) are expected to price June 27 and settle June 29.

Citigroup Global Markets Inc. is the agent.

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