Citibank plans inverse floating-rate market-linked CDs on Russell 2000

By Marisa Wong

Madison, Wis., May 1 - Citibank, NA plans to price callable fixed-to-inverse-floating market-linked certificates of deposit due May 30, 2033 linked to the Russell 2000 index, according to a term sheet.

The coupon will be 8% for the first year. After that, it will accrue at (i) 1.1 times (ii) 6% minus Libor, subject to a floor of 0% and a cap of 6.6%, for each day that the index closes at or above 80% of the initial index level. Interest is payable quarterly.

The payout at maturity will be par.

The CDs will be callable at par on any interest payment date beginning May 30, 2014.

Citigroup Global Markets is the agent.

The CDs will price on May 24 and settle on May 30.

The Cusip number is 172986GJ4.

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