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

By Jennifer Chiou

New York, Aug. 1 - Citibank, NA plans to price callable fixed-to-inverse-floating market-linked certificates of deposit due Aug. 29, 2033 linked to the Russell 2000 index, according to a term sheet.

The coupon will be 11.25% for the first year. After that, it will accrue at (i) 1.15 times (ii) 7% minus Libor, subject to a floor of 0% and a cap of 8.05%, for each day that the index closes at or above 77.5% 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 on Aug. 29, 2014.

The notes (Cusip: 172986GS4) are expected to price on Aug. 26 and settle on Aug. 29.

Citigroup Global Markets is the agent.

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