Barclays to price notes linked to Barclays Backwardation Alpha index

By Angela McDaniels

Tacoma, Wash., April 17 - Barclays Bank plc plans to price 0% notes due April 25, 2017 linked to the Barclays Backwardation Alpha DJ-UBSCI Total Return index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes are callable and putable. A holder who wishes to exercise the put option must put back at least 100 notes. In addition, the company may choose to redeem the notes if the intraday indicative value of the index is less than 50% of the initial level at any time during the term of the notes.

The payout at upon redemption or at maturity will be par plus the index return minus an index fee of 1.5% per year.

The index is designed to provide investors with a market-neutral index that tracks the performance of a basket of long and short single-commodity indexes. The short portfolio consists of notional short positions in Barclays single-commodity indexes based on the same commodities as those included in the Dow Jones - UBS Commodity index. The long portfolio consists of notional long positions in Barclays single-commodity indexes selected for their high degree of backwardation.

The forward price curve for a commodity is said to be in "backwardation" when the prices of the contracts with shorter-term expirations will be higher than for contracts with longer-term expirations.

The notes (Cusip: 06738K3N9) will price April 20 and settle April 25.

Barclays Capital Inc. is the agent.

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