Barclays to price 0% five-year notes linked to Pure Beta Plus II index

By Angela McDaniels

Tacoma, Wash., Dec. 31 - Barclays Bank plc plans to price 0% notes due Jan. 13, 2015 linked to the Barclays Capital Pure Beta Plus II Total Return index, according to an FWP filing with the Securities and Exchange Commission.

The notes are putable and callable at any time.

The payout upon redemption or at maturity will be par plus the index return minus the investor fee, which equals 1.75% per year times par times the quotient of the final index level divided by the initial index level. The notes are not principal protected.

The index is designed to reflect the total returns available through the application of the Barclays Capital Pure Beta methodology to a basket of underlying physical commodities, which are selected so as to correspond to the commodities then included in the Dow Jones - UBS Commodity Index Total Return. The methodology attempts to mitigate the potential effect of investment flow and supply disruption distortions by allowing the index to roll into one of a series of futures contracts with more distant expirations that could be less affected by negative roll yield, chosen using certain rules-based allocation criteria.

The notes will price Jan. 8 and settle Jan. 13.

Barclays Capital Inc. is the agent.

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