Citibank plans fixed-to-inverse floating CDs linked to Russell 2000

By Angela McDaniels

Tacoma, Wash., Aug. 1 - Citibank, NA plans to price callable fixed-to-inverse-floating-rate market-linked certificates of deposit due Aug. 30, 2032 linked to the Russell 2000 index, according to a term sheet.

The interest rate will be 7% for the first year. In years two through 20, the interest rate will be the contingent floating rate multiplied by the proportion of days on which the index closes at or above the index reference level, which will be 80% of the initial index level. The contingent floating rate will be an annual rate equal to the greater of (a) (i) 1.1 times (ii) 6% minus Libor and (b) 1%. Interest will be payable quarterly.

The payout at maturity will be par.

Beginning Aug. 30, 2013, the CDs will be callable on any interest payment date at par.

Citigroup Global Markets Inc. is the agent.

The CDs are expected to price Aug. 27 and settle Aug. 30.

The Cusip number is 172986LU3.

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