NEW YORK--(BUSINESS WIRE)--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.