Citigroup to sell Pacers linked to energy indexes

By Jennifer Chiou

New York, Sept. 27 - Citigroup Funding Inc. plans to price Premium Mandatory Callable Equity-linked Securities (Pacers) linked to a basket of energy indexes, according to a 424B2 filed with the Securities and Exchange Commission.

The basket will include equal weights of the PHLX Oil Service Sector index and the S&P GSCI Energy Excess Return index.

The notes will be priced at par of $10.00.

The securities will be subject to a mandatory premium call in April 2008, October 2008 or April 2009 if the basket level is greater than or equal the initial value.

If the notes are not called before maturity, investors will receive par times the final index performance if, at any time during the life of the securities, the basket closes below 80% of its initial value. Otherwise, the payout will be par in cash.

Citigroup Global Markets is the agent.

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