Citibank plans six-year market-linked CDs linked to commodity basket

By Susanna Moon

Chicago, June 3 - Citibank, NA plans to price market-linked certificates of deposit due June 24, 2016 based on a basket of equally weighted commodities and indexes, according to a term sheet.

The underlying commodities are corn, soybeans, copper - grade A, gold, silver, platinum, S&P GSCI Crude Oil Excess Return index, S&P GSCI Natural Gas Excess Return index, S&P GSCI Aluminum Excess Return index and S&P GSCI Wheat Excess Return index.

The coupon will be equal to the basket return, subject to a floor of zero. It will be payable in June of each year.

When calculating the basket return, the return of each basket component that has a flat or positive underlying return will be fixed at 9% to 12%, and there is a floor of negative 20% for the remaining basket component returns.

The payout at maturity will be par.

The exact deal terms will be set at pricing.

The CDs are expected to price on June 23 and settle on June 28.

The Cusip is 172986BZ3.

Citigroup Global Markets Inc. is the agent. Incapital LLC is the distributor.

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