Citibank to price 20-year callable leveraged CDs linked to CMS rates

By Angela McDaniels

Tacoma, Wash., Nov. 1 - 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 be four times the spread of the 10-year CMS rate over the two-year CMS rate minus 0.55%, subject to a floor of zero and a cap of 6% per year in each interest period. Interest is payable quarterly.

The payout at maturity will be par.

Beginning one year after issuance, the CDs will be callable at par on any interest payment date.

The CDs (Cusip 172986CK5) are expected to price in November.

Citigroup Global Markets Inc. is the agent. Incapital LLC is the distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.