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

By Marisa Wong

Madison, Wis., Oct. 6 - Citibank, NA plans to price callable leveraged market-linked certificates of deposit due 2030 linked to the 10-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 10-year CMS rate over the two-year CMS rate, subject to a floor of zero and a cap of 6% 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: 172986CJ8) are expected to price in October.

Citigroup Global Markets Inc. is the agent.

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