SunTrust Bank plans to price CDs linked to two indexes, ETF

By Angela McDaniels

Tacoma, Wash., May 6 - SunTrust Bank plans to price 0% certificates of deposit due May 23, 2014 linked to a basket of two indexes and an exchange-traded fund, according to a term sheet.

The basket includes the Dow Jones - AIG Commodity index with a 50% weight, the S&P 500 index with a 40% weight and the iShares MSCI Emerging Markets index fund with a 10% weight.

The payout at maturity will be par plus 75% to 85% of any basket gain, with the exact participation rate to be set at pricing. Investors will receive at least par.

Beginning June 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 May 21 and settle May 28.

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