Citigroup plans buffer notes tied to basket of exchange-traded funds

By Toni Weeks

San Diego, July 19 - Citigroup Funding Inc. plans to price 0% buffer notes due April 25, 2013 linked to a weighted basket of exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket is comprised of the Industrial Select Sector SPDR fund with a 25% weight, the SPDR S&P MidCap 400 ETF Trust with a 30% weight, the iShares Russell 1000 Growth index fund with a 30% weight and the iShares FTSE China 25 index fund with a 15% weight.

If the basket return is positive, the payout at maturity will be par plus 110% of the basket return, subject to a maximum return of 20% to 24% that will be set at pricing.

Investors will receive par if the basket declines by up to 10% and will be exposed to losses beyond 10%.

The notes (Cusip: 1730T0MY2) are expected to price July 21 and settle in July.

Citigroup Global Markets Inc. will be the underwriter.

© 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.