Citigroup plans buffer notes linked to iShares FTSE/Xinhua China 25

By Jennifer Chiou

New York, July 2 - Citigroup Funding Inc. plans to price 0% buffer notes due 2011 linked to the iShares FTSE/Xinhua China 25 index fund, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par of $10 plus about 200% of any index fund gain, up to a maximum return of 35% to 40%. The exact participation rate and cap will be set at pricing.

Investors will receive par if the index fund declines by 15% or less and will lose 1% for every 1% that the index fund declines beyond 15%.

The issuer has applied to list the notes on the NYSE Arca under the symbol "BFC."

The notes will price in July.

Citigroup Global Markets Inc. will be the underwriter.

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