Barclays plans 0.25%-0.5% notes linked to Barclays Backwardation index

By Angela McDaniels

Tacoma, Wash., Aug. 4 - Barclays Bank plc plans to price 0.25% to 0.5% notes due Aug. 31, 2016 linked to the Barclays Capital Backwardation Excess Return index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable annually.

The payout at maturity will be par plus the index return, subject to a minimum payout of $900 per $1,000 principal amount of notes and a maximum payout of $1,400 to $1,500.

The exact coupon and maximum payout will be set at pricing.

Each month, the index's selection process is used to evaluate the shape of the forward price curve for 23 commodities. The 10 commodities with the greatest degree of backwardation (or least degree of contango) are included in the index for the following month. 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 will price Aug. 26 and settle Aug. 31.

Barclays Capital Inc. is the agent.

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