Citigroup to sell Pacers linked to Cemex ADRs

By Jennifer Chiou

New York, Sept. 29 - Citigroup Funding Inc. plans to price an issue of two-year Premium Mandatory Callable Equity-linked Securities (Pacers) based on the American Depositary Receipts representing Cemex SAB ordinary participation certificates, according to a 424B2 document filed with the Securities and Exchange Commission.

The notes will be priced at par of $10.00.

The securities will be subject to a mandatory premium call in April 2007, October 2007 or April 2008 if Cemex ADRs trade at greater than or equal to the initial index level. The specific call dates and prices will be determined on the pricing date.

If the notes are not called before maturity, investors will receive a number of Cemex ADRs equal to the exchange ratio if the closing level is less than or equal to 75% of the initial value. Otherwise, investors will receive par in cash.

Citigroup said it will apply to list the securities under "PXX" on the American Stock Exchange.

Citigroup Global Markets Inc. will be the agent.

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