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

By Marisa Wong

Madison, Wis., Aug. 31 - Citibank, NA plans to price market-linked certificates of deposit due Sept. 21, 2016 based on an equally weighted basket of seven commodities and three indexes, according to a term sheet.

The underlying commodities are gasoline RBOB, zinc, gold, platinum, nickel, soybeans, sugar, the S&P GSCI Crude Oil Excess Return index, the S&P GSCI Wheat Excess Return index and the S&P GSCI Livestock Excess Return index.

The CDs will pay a coupon in September of each year equal to the sum of the weighted returns for the basket components. If a basket component's underlying return is flat or positive, its return will be 8% to 10%, with the exact percentage 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 exact deal terms will be set at pricing.

The CDs are expected to price on Sept. 24 and settle on Sept. 29.

The Cusip is 172986CH2.

Citigroup Global Markets Inc. is the agent. Incapital LLC and Advisors Asset Management, Inc. are the distributors.

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