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Barclays Launches First Exchange Traded Note Linked to Carbon
Market Wire, June, 2008
Barclays Bank PLC announced today the launch of the iPath® Global Carbon Exchange Traded Note (ETN) on the NYSE Arca stock exchange. It is the first iPath® ETN to offer investors exposure to the global price of carbon. Barclays, a leading intermediary in the environmental markets, is launching this investment vehicle to meet the needs of investors' growing appetite for exposure to Greenhouse Gas prices.
This new iPath® ETN is linked to the Barclays Capital Global Carbon Index Total Return(TM). The index tracks the performance of the most liquid carbon credits associated with the world's major greenhouse gas emissions trading plans and is designed to be a global industry benchmark for carbon-related investing. Currently, the index includes two plans: European Union Emissions Trading Scheme and the Kyoto Protocol's Clean Development Mechanism. Eligible plans are selected from the growing universe of tradable carbon credits and are regularly reviewed for inclusion.
"The global carbon arena has the potential to become one of the world's largest commodities markets and we are pleased to offer investors exposure to this growing market," said Philippe El-Asmar, Head of Solution Sales, Americas at Barclays Capital. "The launch of this product underscores the importance of our environmental markets business and providing clients with access to harder-to-reach markets."
The firm also launched ten new iPath® ETNs designed to offer exposure to sub-indices of the Dow Jones-AIG Commodity Index Total Return(SM). They are linked to aluminum, cocoa, coffee, cotton, lead, platinum, precious metals, softs*, sugar and tin.
The new iPath® ETNs have a 30-year maturity and are senior, unsecured, unsubordinated debt securities issued by Barclays Bank PLC linked to the performance of a market index. iPath® ETNs, which investors can trade on an exchange at market prices, are designed to provide investors with convenient access to the returns of market benchmarks, less investor fees.
Several Barclays divisions worked together to create this success. Barclays Bank PLC is the issuer, Barclays Capital Inc. is the issuer's agent, and Barclays Global Investors Services is the promoter of iPath® ETNs to intermediaries.
The pricing supplements can be found on the SEC website at:
iPath® Global Carbon ETN (GRN) http://www.sec.gov/Archives/edgar/data/312070/000119312508139238/d424b3.htm iPath® Dow Jones-AIG Aluminum Total Return Sub-Index(SM) ETN (JJU) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Cocoa Total Return Sub-Index(SM) ETN (NIB) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Coffee Total Return Sub-Index(SM) ETN (JO) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Cotton Total Return Sub-Index(SM) ETN (BAL) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Lead Total Return Sub-Index(SM) ETN (LD) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Platinum Total Return Sub-Index(SM) ETN (PGM) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Precious Metals Total Return Sub-Index(SM) ETN (JJP) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Softs Total Return Sub-Index(SM) ETN (JJS) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Sugar Total Return Sub-Index(SM) ETN (SGG) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm iPath® Dow Jones-AIG Tin Total Return Sub-Index(SM) ETN (JJT) http://www.sec.gov/Archives/edgar/data/312070/000119312508139235/d424b2.htm
The following link provides further information about the iPath ETNs: http://www.iPathETN.com
Barclays Capital provides data, analytics and support for the Barclays Capital Global Carbon Index Total Return(TM) index via web-based and other e-commerce protocols. The indices are available on Barclays Capital's index website ( http://www.barcap.com/indices ) and Bloomberg.
*Softs include sugar, coffee and cotton.
About Barclays
Barclays PLC is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services. It is one of the largest financial services companies in the world by market capitalisation. With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 135,000 people. Barclays moves, lends, invests and protects money for over 27 million customers and clients worldwide. For further information about Barclays, please visit our website www.barclays.com .
An investment in iPath ETNs involves risks, including possible loss of principal. For a description of the main risks see "Risk Factors" in the applicable prospectus.