SunTrust to price five-year CDs tied to Brazilian real versus dollar

By Jennifer Chiou

New York, Sept. 1 - SunTrust Bank plans to price certificates of deposit due Sept. 22, 2014 linked to the Brazilian real, according to a preliminary term sheet.

If the real appreciates relative to the dollar on the annual observation date, the interest payment will be 2.75% per year.

If the real depreciates relative to the dollar on the annual observation date, the interest payment will be 6% per year.

Beginning Sept. 15, 2010, the CDs will be putable on March 15, June 15, Sept. 15 and Dec. 15 of each year. The redemption amount will be calculated differently than the payout at maturity, will include an early withdrawal penalty and could be less than par.

The payout at maturity will be par.

The CDs will price on Sept. 24 and settle on Sept. 29.

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