Citibank plans 20-year callable leveraged CMS spread market-linked CDs

By Marisa Wong

Madison, Wis., March 2 - Citibank, NA plans to price callable leveraged market-linked certificates of deposit due 2031 tied to the 30-year and five-year Constant Maturity Swap rates, according to a term sheet.

The interest rate is fixed at 8% for the first year. After that, the interest rate will equal four times the spread of the 30-year CMS rate over the five-year CMS rate, subject to a floor of zero and a cap of 8% per year for each interest period. Interest is payable quarterly.

Beginning one year after issue, the CDs will be callable on any interest payment date at par plus accrued interest.

The Cusip is 172986CU3.

Citigroup Global Markets Inc. is the agent. Advisors Asset Management, Inc. is the distributor.

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