Barclays plans callable contingent coupon notes linked to Citigroup

By Angela McDaniels

Tacoma, Wash., Jan. 18 - Barclays Bank plc plans to price callable contingent coupon notes due January 2015 linked to the common stock of Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a 2.5% coupon (equivalent to 10% per year) each quarter if the closing price of Citigroup shares is greater than or equal to the barrier price, 65% to 70% of the initial share price. Otherwise, holders will not receive the contingent interest payment for that quarter.

The notes are callable at par plus the contingent coupon, if any, on any interest payment date.

If the notes are not called, the payout at maturity will be par if the final share price is greater than or equal to the barrier price. If the final share price is less than the barrier price, investors will receive a number of Citigroup shares equal to $1,000 divided by the initial share price or, at Barclays' option, an amount in cash equal to the value of those shares.

The notes are expected to price and settle in January.

Barclays is the agent.

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