Wachovia to sell 0% notes linked to Nikkei

By Jennifer Chiou

New York, March 8 - Wachovia Corp. plans to sell 0% notes with 90% principal protection linked to the Nikkei 225 index, according to a 424B5 filing with the Securities and Exchange Commission.

The securities will mature on April 1, 2011 and will be priced at par of $10.00.

At maturity, if the final index level is greater than the initial level, the notes will pay par plus an index participation factor of 120 to 125% of the index gain. Holders will receive at least $9.00 per $10.00 note. The index participation factor will be determined on the pricing date.

Because the payout is linked to the percentage change in the index rather than the dollar value of the stocks underlying the index, there is no currency risk.

Wachovia has applied to list the securities on the American Stock Exchange under the symbol "NKF."

Wachovia Securities will be the underwriter.

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