Citibank plans 20-year callable leveraged market-linked CDs on CMS

By Jennifer Chiou

New York, Jan. 4 - Citibank, NA plans to price callable leveraged market-linked certificates of deposit due 2031 linked to the 30-year and two-year Constant Maturity Swap rates, according to a term sheet.

The interest rate is fixed at 7% for the first year. Thereafter, the interest rate will equal four times the spread of the 30-year CMS rate over the two-year CMS rate, subject to a floor of zero and a cap of 7% per year in each interest period. Interest is payable quarterly.

Beginning one year after issue, the CDs are callable on any interest payment date at par plus accrued interest.

The CDs (Cusip: 172986CM1.) are expected to price in January.

Citigroup Global Markets Inc. is the agent. Advisors Asset Management, Inc. is the distributor.

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