SunTrust Bank plans CDs linked to dollar/yen exchange rate

By Angela McDaniels

Tacoma, Wash., March 10 - SunTrust Bank plans to price 0% certificates of deposit due March 16, 2012 linked to the dollar/yen exchange rate, according to a term sheet.

If the exchange rate both falls to or below the lower trigger and reaches or exceeds the upper trigger during the life of the CDs, the payout at maturity will be par plus 30%. Otherwise, the payout will be par plus 1.5%.

The lower trigger will equal the initial exchange rate minus 6 yen per dollar, and the upper trigger will equal the initial exchange rate plus 21 yen per dollar.

Beginning March 15, 2010, 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 March 25 and settle March 30.

Incapital LLC is the distributor.

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