Barclays plans 0% notes tied to Pure Beta agriculture, metals indexes

By Marisa Wong

Madison, Wis., Aug. 24 - Barclays Bank plc plans to price 0% notes due Sept. 2, 2016 linked to a basket of commodity indexes that includes the Barclays Capital Commodity Index Agriculture Pure Beta Excess Return and the Barclays Capital Commodity Index Industrial Metals Pure Beta Excess Return, according to a 424B2 filing with the Securities and Exchange Commission.

The indexes are each designed to give investors exposure to the returns of futures positions in the respective commodities underlying each index, while mitigating the effects of certain distortions in the commodity futures markets on such returns using the Pure Beta Series 2 methodology.

The payout at maturity will be par plus 1.5 times the basket return, subject to a maximum return of 100.5% to 125% that will be set at pricing.

Investors will receive par if the basket falls by 20% or less and will lose 1% for every 1% basket decline beyond 20%.

The notes (Cusip: 06738KSP7) will price on Aug. 30 and settle on Sept. 2.

Barclays Capital Inc. is the agent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.