Barclays to price 0% iPath exchange-traded notes linked to the pound/dollar exchange rate

By Jennifer Chiou

New York, Nov. 1 - Barclays Bank plc plans to price an issue of 0% iPath exchange-traded notes due 2036 linked to the pound/dollar exchange rate, according to a 424B2 filing with the Securities and Exchange Commission.

Holders may redeem their notes at anytime before maturity for a cash payment equal to the principal amount of notes times the initial exchange rate, multiplied by the adjustment factor, which will initially equal 1.

The adjustment factor will be calculated daily and will be equal to the previous business day's factor times 1 plus the Sterling Overnight Index Average, minus 0.27% and investor fees of 0.4% multiplied by the relevant day-count fraction.

At maturity, investors will receive a cash payment equal to the fraction, where the numerator equals the reference currency amount times the adjustment factor as determined on the final valuation date, and the denominator equals the pound/dollar exchange rate on the final valuation date.

Barclays Capital will be the agent.

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