Citigroup plans barrier digital securities linked to SPDR Gold Trust

By Angela McDaniels

Tacoma, Wash., Sept. 5 - Citigroup Funding Inc. plans to price 0% barrier digital securities due Sept. 29, 2014 linked to the SPDR Gold Trust, according to a 424B2 filing with the Securities and Exchange Commission.

If the ending share price is greater than the starting share price, the payout at maturity will be par plus the fixed return amount, which is expected to be 18% to 20% and will be set at pricing.

If the ending share price is less than or equal to the starting share price but greater than the barrier price, the payout will be par. The barrier price will be 85% of the starting share price.

If the ending share price is less than or equal to the barrier price, investors will be fully exposed to the decline of the share price from the initial share price.

The notes are expected to price Sept. 24 and settle three business days later.

Citigroup Global Markets Inc. is the underwriter.

The Cusip number is 1730T0YS2.

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