SunTrust Bank plans CDs linked to four currencies versus U.S. dollar

By Angela McDaniels

Tacoma, Wash., Dec. 8 - SunTrust Bank plans to price 0% certificates of deposit due Dec. 20, 2012 linked to performance of a basket of currencies relative to the U.S. dollar, according to a term sheet.

The basket includes equal weights of the British pound sterling, Canadian dollar, euro and Japanese yen.

If the basket appreciates relative to the U.S. dollar, the payout at maturity will be par plus 75% of the gain. If the basket depreciates, the payout will be par plus the absolute value of the decline.

Beginning Dec. 15, 2009, the CDs will be putable on quarterly early redemption dates. The redemption amount will be calculated differently than the payout at maturity, will include an early withdrawal penalty and may be less than par.

The CDs will price on Dec. 19 and settle on Dec. 29.

SunTrust Robinson Humphrey, Inc. and SunTrust Investment Services, Inc. are the agents, with Incapital LLC as distributor.

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