New Issue: Barclays prices $4.5 million 12.3% One Observation Reverse Convertibles linked to Valero

By Angela McDaniels

Tacoma, Wash., Nov. 9 - Barclays Bank plc priced $4.5 million of 12.3% Callable One Observation Reverse Convertible Notes due Nov. 8, 2010 linked to the common stock of Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

If Valero Energy stock closes at or above the initial share price on Feb. 4, 2010, May 4, 2010 or Aug. 4, 2010, the notes will be automatically called at par.

If the notes are not called, the payout at maturity will be par unless the stock closes below the protection price - 70% of the initial price - on Nov. 3, 2010, in which case investors will receive a number of Valero Energy shares equal to $1,000 divided by the initial price or, at Barclays' option, par minus the share price decline.

Barclays Capital Inc. is the agent.

Issuer:	Barclays Bank plc
Issue:	Callable One Observation Reverse Convertible Notes
Underlying stock:	Valero Energy Corp. (Symbol: VLO)
Amount:	$4.5 million
Maturity:	Nov. 8, 2010
Coupon:	12.3%, payable monthly
Price:	Par
Payout at maturity:	If Valero Energy stock closes below the protection price on Nov. 3, 2010, 56.497175 Valero Energy shares or par minus the share price decline; otherwise, par
Call:	Automatically at par if Valero Energy stock closes at or above the initial share price on Feb. 4, 2010, May 4, 2010 or Aug. 4, 2010
Initial share price:	$17.70
Protection price:	$12.39, 70% of initial price
Pricing date:	Nov. 4
Settlement date:	Nov. 9
Agent:	Barclays Capital Inc.
Fees:	2.75%

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