Union Bank plans principal-protected CDs linked to BRIK currencies

By Angela McDaniels

Tacoma, Wash., Oct. 28 - Union Bank, NA plans to price zero-coupon principal-protected market-linked certificates of deposit due Nov. 24, 2017 linked to a basket of currencies, according to a term sheet.

The basket contains equal weights of the Brazilian real, Russian ruble, Indian rupee and Korean won.

The payout at maturity will be par plus the greater of 14% and 175% to 200% of any basket appreciation relative to the dollar. The exact participation rate will be set at pricing.

Beginning Dec. 15, 2011, the CDs will be putable on March 15, June 15, Sept. 15 and Dec. 15 of each year. The redemption amount may be less than par.

The CDs (Cusip 90521ADP0) are expected to price Nov. 23 and settle Nov. 29.

UnionBanc Investment Services, LLC is the agent.

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