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

By Marisa Wong

Madison, Wis., Jan. 31 - Citibank, NA plans to price callable leveraged market-linked certificates of deposit due 2031 linked to the 30-year and two-year Constant Maturity Swap rates, according to a term sheet.

The interest rate is fixed at 7.25% for the first year. After that, the interest rate will equal four times the spread of the 30-year CMS rate over the two-year CMS rate minus 50 basis points, subject to a floor of zero and a cap of 7.25% 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 CDs (Cusip: 172986CS8) are expected to price in February.

Citigroup Global Markets Inc. is the agent.

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