SunTrust Bank plans 1% CDs linked to index basket

By Angela McDaniels

Tacoma, Wash., April 1 - SunTrust Bank plans to price 1% certificates of deposit due April 24, 2014 linked to a basket of indexes, according to a term sheet.

The basket includes equal weights of the Dow Jones Euro Stoxx 50, Nikkei 225 and S&P 500 indexes.

Interest is payable annually.

The payout at maturity will be par plus any basket gain, subject to a maximum return that is expected to be 20% to 30% and will be set at pricing. Investors will receive at least par.

Beginning March 15, 2010, the CDs will be putable on quarterly early redemption dates. The redemption amount will be calculated differently than the payout at maturity, will include an early withdrawal penalty and may be less than par.

The CDs will price April 16 and settle April 22.

Incapital LLC is the distributor.

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