SunTrust Bank plans to price certificates of deposit linked to gold

By Angela McDaniels

Tacoma, Wash., July 7 - SunTrust Bank plans to price 0% certificates of deposit due July 31, 2014 linked to the price of gold, according to a term sheet.

If the price of gold is greater than the upper barrier on any day during the life of the CDs, the payout at maturity will be par plus 10%. Otherwise, the payout will be par plus the greater of 10% and the gold return.

The upper barrier is expected to be 185% to 200% of the initial gold price and will be set at pricing.

The CDs will price July 24 and settle July 31.

SunTrust is the agent. InCapital is the distributor.

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