Barclays Bank PLC (“Barclays”) announced today that it has elected to
redeem the following three Toronto Stock Exchange-listed iPath®
exchange traded notes (ETNs):
-
iPath® S&P 500 VIX Short-Term Futures™ CAD
Hedged ETN (ticker: VIX)
-
iPath® S&P 500 Dynamic VIX CAD Hedged ETN (ticker: DVX)
-
iPath® Pure Beta Crude Oil CAD Hedged ETN (ticker: PBO)
“Canadian investors continue to prefer our US dollar-denominated ETNs
over the Canadian dollar-denominated ETNs,” said Ian Merrill, Head of
ETNs, Americas. “As such, we are redeeming all three of our Canadian
dollar-denominated Toronto Stock Exchange-listed iPath ETNs due to a
lack of investor demand.”
As described in the prospectus and related pricing supplement for each
ETN (together, the “prospectus”), Barclays, as Issuer of the ETNs, may
redeem the ETNs at its sole discretion on any business day on or after
the inception date until maturity. Details of the early redemption are
below:
The redemption date of the ETNs will be May 23, 2014. Holders of the
ETNs on the redemption date will receive a cash payment per ETN equal to
the closing indicative value on May 15, 2014, which is the valuation
date that is five business days prior to the redemption date. Please
refer to the prospectus relating to each issue of ETNs for a description
of how the closing indicative value is calculated after notice of issuer
redemption of the ETNs has been provided.
An investment in the ETNs involves significant risks and may not be
suitable for all investors. For more information on risks
associated with the ETNs, please see "Selected Risk Considerations"
below and the risk factors included in the relevant prospectus.
For more information regarding the issuer redemption, including how the
amount paid on the redemption date is determined, see the prospectus
relating to each of the ETNs under the heading “Specific Terms of the
ETNs - Payment Upon Holder Redemption and Issuer Redemption.” The
prospectus relating to each of the ETNs can be found on SEDAR at: www.sedar.com.
Selected Risk Considerations
An investment in the iPath ETNs described herein (the “ETNs”) involves
risks. Selected risks are summarized here, but we urge you to read the
more detailed explanation of risks described under “Risk Factors” in the
applicable prospectus.
You May Lose Some or All of Your Principal: The ETNs are exposed
to any decrease in the level of the underlying index between the
inception date and the applicable valuation date. Additionally, if the
level of the underlying index is insufficient to offset the negative
effect of the investor fee and other applicable costs, you will lose
some or all of your investment at maturity or upon redemption, even if
the value of such index has increased. Because the ETNs are subject to
an investor fee and any other applicable costs, the return on the ETNs
will always be lower than the total return on a direct investment in the
index components. The ETNs are riskier than ordinary unsecured debt
securities and have no principal protection.
The ETNs Are Not Insured Deposit Liabilities: The ETNs are not
deposit liabilities of Barclays Bank PLC and are not insured by the
Canada Deposit Insurance Corporation, the U.S. Federal Deposit Insurance
Corporation or any other governmental agency of Canada, the United
States, the United Kingdom or any other jurisdiction.
Credit of Barclays Bank PLC: The ETNs are unsecured debt
obligations of the issuer, Barclays Bank PLC, and are not, either
directly or indirectly, an obligation of or guaranteed by any third
party. Any payment to be made on the ETNs, including any payment at
maturity or upon redemption, depends on the ability of Barclays Bank PLC
to satisfy its obligations as they come due. As a result, the actual and
perceived creditworthiness of Barclays Bank PLC will affect the market
value, if any, of the ETNs prior to maturity or redemption. In addition,
in the event Barclays Bank PLC were to default on its obligations, you
may not receive any amounts owed to you under the terms of the ETNs.
Issuer Redemption: Barclays Bank PLC will have the right to
redeem or “call” a series of ETNs (in whole but not in part) at its sole
discretion and without your consent on any business day on or after the
inception date until and including maturity.
A Trading Market for the ETNs May Not Develop: Although the ETNs
are listed on the Toronto Stock Exchange, a trading market for the ETNs
may not develop and the liquidity of the ETNs may be limited, as we are
not required to maintain any listing of the ETNs.
No Interest Payments from the ETNs: You may not receive any
interest payments on the ETNs.
Restrictions on the Minimum Number of ETNs and Date Restrictions for
Redemptions: You must redeem at least 25,000 or 50,000 (depending on
the series) ETNs of the same series at one time in order to exercise
your right to redeem your ETNs on any redemption date. You may only
redeem your ETNs on a redemption date if we receive a notice of
redemption from you by certain dates and times as set forth in the
prospectus.
Uncertain Tax Treatment: Significant aspects of the tax treatment
of the ETNs are uncertain. You should consult your own tax advisor about
your own tax situation.
“Standard & Poor’s®”, “S&P®”, “S&P 500®”,
“Standard & Poor’s 500TM”, “S&P 500 VIX Short-Term
Futures™”, “S&P 500 VIX Mid-Term Futures™” and “S&P 500®
Dynamic VIX Futures™” are trademarks of Standard & Poor’s Financial
Services LLC (“S&P”) and have been licensed for use by Barclays Bank
PLC. “VIX” is a registered trademark of the Chicago Board Options
Exchange, Incorporated (“CBOE”) and has been licensed for use by S&P.
The ETNs are not sponsored, endorsed, sold or promoted by S&P or the
CBOE. S&P and CBOE make no representation, condition or warranty,
express or implied, to the owners of the ETNs or any member of the
public regarding the advisability of investing in securities generally
or in the ETNs or in the ability of either index to track market
performance.
Each of the Barclays commodities indices referenced herein is a
trademark of Barclays Bank PLC.
© 2014 Barclays Bank PLC. All rights reserved. iPath, iPath ETNs and the
iPath logo are registered trademarks of Barclays Bank PLC. All other
trademarks, servicemarks or registered trademarks are the property, and
used with the permission, of their respective owners.
Barclays is a major global financial services provider engaged in
personal banking, credit cards, corporate and investment banking and
wealth and investment management with an extensive international
presence in Europe, the Americas, Africa and Asia. Barclays’ purpose is
to help people achieve their ambitions – in the right way. With over 300
years of history and expertise in banking, Barclays operates in over 50
countries and employs approximately 140,000 people. Barclays moves,
lends, invests and protects money for customers and clients worldwide.
For further information about Barclays, please visit our website www.barclays.com.
Copyright Business Wire 2014