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

By Susanna Moon

Chicago, April 7 - Citibank, NA plans to price callable leveraged CMS spread market-linked certificates of deposit due 2031, according to a term sheet.

The coupon will be 7.5% for the first year. After that, it will be four times the spread of the 30-year Constant Maturity Swap rate over the two-year CMS rate minus 50 basis points, up to a maximum rate of 7.5%. Interest will be payable quarterly and cannot be less than zero.

The payout at maturity will be par.

The CDs will be callable at par on any interest payment date after one year.

Citigroup Global Markets Inc. is the underwriter.

The Cusip is 172986CY5.

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