SunTrust Bank plans CDs linked to dollar/euro exchange rate

By Jennifer Chiou

New York, Jan. 9 - SunTrust Bank plans to price 0% certificates of deposit due July 22, 2011 linked to the absolute return of the dollar/euro exchange rate, according to a term sheet.

An out-of-range event will have occurred if the exchange rate ever closes below the lower barrier, 80% of the initial rate, or above the upper barrier, 120% of the initial rate.

If an out-of-range event does not occur, investors will receive par plus the absolute value of the exchange rate return. If one does occur, investors will receive par plus 1.5%.

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 Jan. 12 and settle on Jan. 29.

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

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