The bond is likely to be launched this week, subject to market conditions, he said Friday. Salomon Smith Barney will act as lead manager for the issue.

The bond will be collateralized by US credit-card receivables originated by Citibank. It will be the bank's first bond in euros; Citibank previously issued credit-card-backed bonds in marks and French francs.

Market talk on the fixed-rate bond centers on a yield 0.10 per cent to 0.15 per cent above the euro interbank offered rate. A yield of Euribor plus 0.10 per cent is the equivalent of about 0.38 per cent over the five-year French government issue.

MBNA Corp., another credit-card company, issued 500 million euro ($525.2 million) of five-year Eurobonds earlier this month priced to yield 0.41 per cent more than theFrench government benchmark, following an April offering of 750 million euro ($787.7 million) of seven-year floating-rate notes priced to yield 0.14 per cent above Euribor. The latest issue is quoted at a spread of 0.06 per cent over Euribor.

"With spreads widening, Euribor plus 10 to 15 [percentage points] could be a battle," said a trader of asset-backed securities at a German bank."That is certainly more like five-year pricing."

Credit-card-backed bonds are the most heavily traded in the asset-backed sector, because they are liquid and well understood. The spreads have widened dramatically in recent weeks.

Citibank might wish to widen the spread to ensure a successful deal, suggested the trader. "One or two basis points [hundredths of a percentage point] makes all the difference," he said. Citibank is a well-liked borrower, however, he said.

"The price is probably in line with outstanding issues, but it is a tough market at the moment," said a trader at a different German bank. Citibank plans toborrow $7.2 billion this year through its Credit Card Master Trust, and has completed some $4.6 billion of borrowing so far. The company has a policy of spreading its borrowing around to avoid exhausting interest in its offerings, Wainhouse said, adding that the idea of a yen-denominated issue in Japan "begins to pique our interest now.