Barclays Bank Delaware plans CDs linked to 10 commodity subindexes

By Toni Weeks

San Luis Obispo, Calif., July 3 - Barclays Bank Delaware plans to price certificates of deposit due July 30, 2020 linked to a basket of commodity subindexes, according to a term sheet.

The equally weighted basket includes the S&P GSCI Aluminum Index Excess Return, the S&P GSCI Brent Crude Index Excess Return, the S&P GSCI Cocoa Index Excess Return, the S&P GSCI Lean Hogs Index Excess Return, the S&P GSCI Live Cattle Index Excess Return, the S&P GSCI Precious Metals Index Excess Return, the S&P GSCI Lead Index Excess Return, the S&P GSCI Nickel Index Excess Return, the S&P GSCI Sugar Index Excess Return and the S&P GSCI Zinc Index Excess Return.

The CDs will pay a coupon in July of each year equal to the average of the performances of the basket components, subject to a minimum rate of 0.5% to 0.75%. If a component's return is greater than or equal to zero, its performance will be fixed at 7.5% to 9.5%. If an index's return is negative, its performance will be the greater of the index return and negative 15%. The exact minimum coupon and return cap will be set at pricing.

Investors will receive par at maturity.

Barclays is the agent. Incapital LLC is the distributor.

The CDs will price on July 25 and settle on July 30.

The Cusip number is 06740AZY8.

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