Union Bank plans five-year market-linked CDs tied to BRIC currencies

By Jennifer Chiou

New York, Jan. 31 - Union Bank, NA plans to price zero-coupon principal-protected market-linked certificates of deposit due Feb. 29, 2016 linked to a basket of currencies, according to a term sheet.

The basket contains equal weights of the Brazilian real, Russian ruble, Indian rupee and Chinese renminbi.

The payout at maturity will be par plus the greater of 5% and 150% to 175% of any basket appreciation relative to the dollar. The exact participation rate will be set at pricing.

Beginning March 15, 2011, the CDs will be putable quarterly. The redemption amount may be less than par.

The CDs (Cusip: 90521AER5) are expected to price on Feb. 24 and settle on Feb. 28.

UnionBanc Investment Services, LLC is the agent. Incapital LLC is the distributor.

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