Barclays plans notes linked to Asian currencies

By Laura Lutz

Des Moines, March 28 - Barclays Bank plc plans to price notes due 2038 linked to an Asian currency reference strategy, according to a 424B3 filing with the Securities and Exchange Commission.

The reference strategy is intended to represent the total return of U.S. dollar investments in a diversified, multi-national money markets strategy in eight Asian currencies: the Indian rupee, the Philippine peso, the South Korean won, the Thai baht, the Malaysian ringgit, the Taiwanese dollar and the Chinese yuan.

At maturity or on an early redemption - allowed for a minimum of 50,000 securities - the payout will be the indicative value.

To calculate the various payments, Barclays uses the reference strategy accompanied by a spot reference strategy that reflects only the exchange rate movements, and not the implied local deposit rates.

Investors will receive a monthly interest payment equal to the ex-coupon indicative value for the preceding month times the difference between the monthly IV return and the monthly spot return.

The monthly IV return will be the quotient of the closing indicative value for the month divided by the ex-coupon indicative value for the previous month. The monthly spot return will be the percentage change in the spot reference strategy for that month.

The closing indicative value will initially be $50.

On each subsequent day, the closing indicative value will be the previous day's closing indicative value times the change in the strategy for that day minus an investor fee of 0.89% per year.

The ex-coupon indicative value will be equal to the closing indicative value minus the coupon to be paid on the next payment date.

They payout at maturity will be equal to the closing indicative value on the final valuation date.

Investors may put the notes at any time, subject to a minimum put amount of $250,000.

Barclays Capital Inc. will act as agent for part of the offering.

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