Barclays to price notes linked to EquityCompass Share Buyback index

By Angela McDaniels

Tacoma, Wash., Nov. 21 - Barclays Bank plc plans to price 0% notes due Dec. 23, 2014 linked to the EquityCompass Share Buyback index, according to a 424B2 filing with the Securities and Exchange Commission.

The index seeks to capture returns that may be available from investing in a basket of stocks that are selected using the EquityCompass Share BuyBack Strategy, a trading restriction filter and concentration procedures. The strategy selects a portfolio of stocks of up to 30 companies with the most significant share buyback announcements in the prior three months. It is based on the premise that stocks of companies that announce share buybacks may be more likely to perform well because share buybacks are a signal to the market that the management of a company believes the company's shares are undervalued.

For each $1,000 principal amount of notes, the payout at maturity will be 97.5% of the sum of (a) $1,000 plus (b) $1,000 multiplied by the net asset return as of the final valuation date.

The net asset return on any day is the percentage change of the net asset value from the initial net asset value to the current net asset value.

The net asset value on the pricing date will be $1,000. On any subsequent business day, it will be (a) the net asset value on the last note rebalancing date multiplied by (b) one plus the net index periodic return as of that business day. The note rebalancing dates are the sixth calendar day of each month.

The net index periodic return equals the index periodic return as of that business day minus the investor fee, which is 0.9% per year.

The index periodic return equals the performance of the index from its closing level on the last note rebalancing date to its closing level on that business day.

If the net asset value falls to or below $250, the notes will be automatically called. The payout will be calculated in the same way as the payout at maturity using the net asset value of the notes on the business day immediately following the automatic call trigger date.

The notes (Cusip: 06738KZS3) will price Dec. 16 and settle Dec. 23.

Barclays Capital Inc. is the agent.

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