Barclays plans floaters on Barclays Capital Backwardation, Dow Jones-UBS Commodity indexes

By Marisa Wong

Madison, Wis., May 25 - Barclays Bank plc plans to price floating-rate notes due June 10, 2013 linked to a basket of the Barclays Capital Backwardation Total Return index and the Dow Jones-UBS Commodity Index Total Return, according to a 424B2 filing with the Securities and Exchange Commission.

The interest amount will equal the total interest earned at the floating rate, which will be the federal funds effective rate, compounded daily. Interest is payable at maturity or on an early redemption date.

The basket takes a long position in the backwardation index and a short position in the commodity index. The basket level is initially set at 100. The final basket level will equal 100 plus the backwardation return minus the commodity index return. The backwardation return will be adjusted by a fee of 1.25% per year, and the commodity index return will be adjusted by a fee of 0.25% per year.

The payout at maturity will be par plus the basket return, less an investor fee of 0.1%.

The notes are callable in whole at any time and are putable, subject to a minimum redemption amount of 1,000 notes. An automatic redemption will be triggered if on any day during the life of the notes the intraday indicative value of the notes - par plus the basket return and minus the investor fee - is less than 40% of the principal amount. The redemption amount will be determined in the same manner as the payout at maturity.

The notes (Cusip: 06738KLD1) will price on May 31 and settle on June 7.

Barclays Capital Inc. is the agent.

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