Union Bank plans principal-protected CDs linked to BRIC currencies

By Jennifer Chiou

New York, Sept. 28 - Union Bank, NA plans to price zero-coupon principal-protected market-linked certificates of deposit due Oct. 27, 2015 linked to a basket of currencies, according to a term sheet.

The basket contains equal weights of the Brazilian real, Russian ruble, Indian rupee and Chinese renminbi.

The payout at maturity will be par plus the greater of 5% and 175% to 195% of any basket appreciation relative to the dollar. The exact participation rate will be set at pricing.

Beginning Sept. 15, 2011, the CDs will be putable on March 15, June 15, Sept. 15 and Dec. 15 of each year. The redemption amount may be less than par.

The CDs (Cusip: 90521ADC9) are expected to price on Oct. 25 and settle on Oct. 27.

UnionBanc Investment Services, LLC is the agent.

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