Citibank plans six-year market-linked CDs tied to basket of 10 stocks

By Jennifer Chiou

New York, July 28 - Citibank, NA plans to price market-linked certificates of deposit due Aug. 26, 2016 linked to a basket of 10 stocks, according to a term sheet.

The equally weighted basket includes the stocks of Amazon.com, Inc., Barrick Gold Corp., Corning Inc., General Mills, Inc., Goldman Sachs Group, Inc., JDS Uniphase Corp., Merck & Co., Inc., Qualcomm Inc., Reynolds American Inc. and Schlumberger Ltd.

The CDs will pay a coupon in August of each year equal to the sum of the weighted returns of the basket components. If a basket component's underlying return is positive, its component return will be 8% to 10%, with the exact percent to be set at pricing. Otherwise, its component return will be equal to the stock's underlying return, subject to a floor of negative 30%. There is a floor of 0% for the contingent interest payment.

The payout at maturity will be par.

The CDs (Cusip: 172986CE9) are expected to price on Aug. 25 and settle on Aug. 30.

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

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