Citibank to price six-year market-linked CDs tied to commodity basket

By Angela McDaniels

Tacoma, Wash., Dec. 31 - Citibank, NA plans to price market-linked certificates of deposit due Jan. 27, 2016 linked to a basket of commodities and indexes, according to a term sheet.

The equally weighted basket includes West Texas Intermediate crude oil, natural gas, corn, soybeans, copper - grade A, gold, silver, platinum, the S&P GSCI Aluminum Excess Return index and the S&P GSCI Wheat Excess Return index.

The CDs will pay a coupon in January of each year equal to the sum of the weighted returns for the basket components. If a basket component's underlying return is positive, its return will be 12% to 15%, with the exact percent to be set at pricing. Otherwise, its return will be equal to its underlying return, subject to a floor of negative 20%.

The payout at maturity will be par.

The CDs are expected to price and settle in January.

Citigroup Global Markets Inc. is the agent. Morgan Stanley Smith Barney is the distributor.

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