Wachovia to issue 0% notes linked to eight Chinese, Indian companies

By Angela McDaniels

Seattle, Oct. 2 - Wachovia Corp. plans to price an issue of 0% principal-protected notes due Sept. 30, 2011 linked to a basket of Chinese and Indian companies, according to a 424B5 filing with the Securities and Exchange Commission.

The equally weighted basket contains the American Depositary Shares of PetroChina Co. Ltd., China Mobile Ltd., China Petroleum & Chemical Corp., China Telecom Corp. Ltd., Infosys Technologies Ltd., Wipro Ltd., Dr. Reddy's Laboratories Ltd. and Tata Motors Ltd.

Payout at maturity will be par of $10.00 plus the sum of the quarterly returns of the basket. The payout has a floor of 105% of par, and each quarterly return will be capped at between 7% and 7.5%, with the exact cap to be determined at pricing.

Wachovia Securities will be the underwriter.

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