-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UHd0YpoezP54Fdi2Hz/CFhzF4/MVAd+tEuW17noFovmEyqaZtmk1K+oVxP34PnTR ZSIzCiEzE9BaOuBUUOu1vQ== 0001193125-06-009328.txt : 20060120 0001193125-06-009328.hdr.sgml : 20060120 20060120153038 ACCESSION NUMBER: 0001193125-06-009328 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20060120 DATE AS OF CHANGE: 20060120 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BARCLAYS BANK PLC /ENG/ CENTRAL INDEX KEY: 0000312070 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL BANKS, NEC [6029] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: 1933 Act SEC FILE NUMBER: 333-126811 FILM NUMBER: 06540755 BUSINESS ADDRESS: STREET 1: 1 CHURCHILL PLACE STREET 2: E14 5HP CITY: LONDON ENGLAND STATE: X0 ZIP: E14 5HP BUSINESS PHONE: 2124124000 MAIL ADDRESS: STREET 1: 1 CHURCHILL PLACE STREET 2: E14 5HP CITY: LONDON ENGLAND STATE: X0 ZIP: E14 5HP FORMER COMPANY: FORMER CONFORMED NAME: BARCLAYS BANK INTERNATIONAL LTD DATE OF NAME CHANGE: 19850313 424B3 1 d424b3.htm PRICING SUPPLEMENT Pricing Supplement
Table of Contents

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-126811

Amendment to Pricing Supplement to the Prospectus dated September 21, 2005

and the Prospectus Supplement dated September 22, 2005

 


 

$10,000,000

 

BARCLAYS BANK PLC

 

Medium-Term Notes, Series A, No. I-003

Callable Floating Rate Notes due November 30, 2035

Linked to Changes in the Consumer Price Index

 


 

Issuer:

Barclays Bank PLC

Issue Date:

November 30, 2005

Maturity Date:

November 30, 2035

Coupon:

CPI Performance multiplied by 1.45 per annum, paid quarterly in arrears on each interest payment date and calculated on a 30/360 basis. If the CPI Performance on any interest payment date is zero or negative, then no interest will be paid on the Notes for that interest payment date.

Interest Payment Dates:

Interest on the Notes will be payable quarterly in arrears on February 28, May 30, August 30, and November 30 of each year, commencing on February 28, 2006 and ending at maturity, unless the Notes are redeemed at our option as described below.

Interest Periods:

The initial interest period will begin on, and include, the issue date and end on, but exclude, the first interest payment date (which is February 28, 2006). Each subsequent interest period will begin on, and include, the interest payment date for the preceding interest period and end on, but exclude, the next following interest payment date. The final interest period will end on the maturity date or any earlier redemption date as described below.

Interest Reset Dates:

The first day of each interest period, commencing on November 30, 2005

Consumer Price Index (CPI):

The Consumer Price Index is the “Non-Seasonally Adjusted U.S. City Average All Items Consumer Price Index for All Urban Customers (CPI-U)” published by the Bureau of Labor Statistics of the U.S. Department of Labor, as displayed on Bloomberg as the “CPURNSA Index”

CPI Performance:

CPI Performance on each interest payment date will be the annual percentage change in the CPI as of the month three months prior to the month of the relevant interest reset date (the “reference month”) calculated as follows:

 

CPI(F) – CPI(I)


CPI(I)

where,

CPI(F) = CPI for the applicable reference month; and

CPI(I) = CPI for the month one year prior to the applicable reference month

 

For example, the CPI Performance on February 28, 2006 will reflect the percentage change in the CPI from November 2004 to November 2005.

Optional Redemption:

We may, at our election, redeem the Notes in whole, but not in part, at a redemption price equal to 100% of the principal amount together with any accrued but unpaid interest thereon, on November 30, 2015, by giving at least five business days prior written notice to the trustee and to each registered holder of the Notes.

Listing:

The Notes are listed on the New York Stock Exchange under the symbol “BCS35” and trade in units of 40 Notes, representing $1,000 in principal amount.

 

CUSIP:

06739F317

 

Calculation Agent:

Barclays Bank PLC

 

See “ Risk Factors” beginning on page PS-11 of this pricing supplement for risks related to an investment in the Notes.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined that this pricing supplement is truthful or complete. Any representation to the contrary is a criminal offense.

 

We may use this pricing supplement in the initial sale of Notes. In addition, Barclays Capital Inc. or another of our affiliates may use this pricing supplement in market-making transactions in any Notes after their initial sale. Unless we or our agent informs you otherwise in the confirmation of sale, this pricing supplement is being used in a market-making transaction.

 

The Notes are not deposit liabilities of Barclays Bank PLC and are not insured by the United States Federal Deposit Insurance Corporation or any other governmental agency of the United States, the United Kingdom or any other jurisdiction.

 

     Price to Public

   Agent’s
Commission


   Proceeds to
Barclays Bank PLC


Per Note

   100%    3.00%    97.00%

Total

   $10,000,000    $300,000    $9,700,000

 

Barclays Capital

 

Amendment dated January 20, 2006

 

 


Table of Contents

TABLE OF CONTENTS

 

PRICING SUPPLEMENT

 

PRICING SUPPLEMENT SUMMARY

   PS-1

RISK FACTORS

   PS-11

THE CONSUMER PRICE INDEX

   PS-13

VALUATION OF THE NOTES

   PS-13

SPECIFIC TERMS OF THE NOTES

   PS-14

USE OF PROCEEDS AND HEDGING

   PS-18

CAPITALIZATION OF BARCLAYS BANK PLC

   PS-19

SUPPLEMENTAL TAX CONSIDERATIONS

   PS-20

SUPPLEMENTAL PLAN OF DISTRIBUTION

   PS-20
PROSPECTUS SUPPLEMENT

THE BARCLAYS BANK GROUP

   S-1

USE OF PROCEEDS

   S-1

DESCRIPTION OF MEDIUM-TERM NOTES

   S-1

FORM, DENOMINATION AND LEGAL OWNERSHIP OF NOTES

   S-5

PAYMENT AND PAYING AGENTS

   S-5

CONSIDERATIONS RELATING TO INDEXED NOTES

   S-9

CONSIDERATIONS RELATING TO NOTES DENOMINATED OR PAYABLE IN OR LINKED TO A NON-U.S. DOLLAR CURRENCY

   S-11

EMPLOYEE RETIREMENT INCOME SECURITY ACT

   S-14

PLAN OF DISTRIBUTION

   S-14

VALIDITY OF SECURITIES

   S-16
PROSPECTUS

FORWARD-LOOKING STATEMENTS

   1

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

   1

PRESENTATION OF FINANCIAL INFORMATION

   1

THE BARCLAYS BANK GROUP

   2

USE OF PROCEEDS

   2

RATIOS OF EARNING TO FIXED CHARGES AND PREFERENCE SHARE DIVIDENDS AND OTHER APPROPRIATIONS

   3

CAPITALIZATION AND INDEBTEDNESS

   4

DESCRIPTION OF DEBT SECURITIES

   5

DESCRIPTION OF PREFERENCE SHARES

   25

DESCRIPTION OF AMERICAN DEPOSITARY RECEIPTS

   31

DESCRIPTION OF SHARE CAPITAL

   36

TAX CONSIDERATIONS

   37

PLAN OF DISTRIBUTION

   51

SERVICE OF PROCESS AND ENFORCEMENT OF LIABILITIES

   54

WHERE YOU CAN FIND MORE INFORMATION

   54

FURTHER INFORMATION

   55

VALIDITY SECURITIES

   55

EXPERTS

   55

EXPENSES OF ISSUANCE AND DISTRIBUTION

   55

 

 


Table of Contents

PRICING SUPPLEMENT SUMMARY

 

The following is a summary of terms of the Notes, as well as a discussion of risks and other considerations you should take into account when deciding whether to invest in the Notes. The information in this section is qualified in its entirety by the more detailed explanations set forth elsewhere in this pricing supplement and in the accompanying prospectus and the accompanying prospectus supplement. References to the “prospectus” mean our accompanying prospectus, dated September 21, 2005, and references to the “prospectus supplement” mean our accompanying prospectus supplement, dated September 22, 2005, which supplements the prospectus.

 

This section summarizes the following aspects of the Notes:

 

  What are the Notes and how do they work?

 

  What are some of the risks of the Notes?

 

  Is this the right investment for you?

 

  What are the tax consequences?

 

  How do the Notes perform?

 

What Are the Notes and How Do They Work?

 

  Underlying Rate – The Notes are medium-term notes issued by Barclays Bank PLC. The return on the Notes is linked to changes in the Consumer Price Index (the “CPI”). The CPI is the “Non-Seasonally Adjusted U.S. City Average All Items Consumer Price Index for All Urban Customers (CPI-U)” published by the Bureau of Labor Statistics of the U.S. Department of Labor, as displayed on the Bloomberg Screen as “CPURNSA Index”. The CPI is a measure of the average change in consumer prices over time for a fixed market basket of goods and services, including food, clothing, shelter, fuels, transportation, charges for doctors and dentists services and drugs.

 

  Coupon – The annual interest rate applicable on the Notes on each interest payment date will be equal to CPI Performance multiplied by 1.45 unless the Notes are redeemed at our option as described in “Specific Terms of the Notes—Optional Redemption”. If the CPI Performance on any interest payment date is zero or negative, then no interest will be paid on the Notes for that interest payment date. For each interest period, the calculation agent will calculate the coupon by multiplying the relevant principal amount by the annual interest rate for the relevant interest period. This amount will then be multiplied by the applicable day count fraction calculated on a 30/360 basis. The day count fraction will be equal to 90 days in an interest period divided by 360. No interest calculation adjustments will be made in the event an interest reset date or an interest payment date is not a business day. CPI Performance on each interest payment date will be the annual percentage change in the CPI as of the month three months prior to the month of the relevant interest reset date (the “reference month”).

 

CPI Performance will be calculated as follows:

 

CPI(F) – CPI(I)


CPI(I)

 

where,

 

CPI(F) = CPI for the applicable reference month; and

 

CPI(I) = CPI for the month one year prior to the applicable reference month.

 

For example, the CPI performance on February 28, 2006 will reflect the percentage change in the CPI from November 2004 to November 2005.

 

  Principal Protection – If you hold your Notes until maturity, you will receive at least the full principal amount of your Notes. If you hold your Notes at November 30, 2015 and we redeem the Notes on that date, as described in “Specific Terms of the Notes – Optional Redemption”, you will still receive the full principal amount of your Notes.

 

  New York Stock Exchange Listing – The Notes are listed on the New York Stock Exchange under the symbol “BCS35” and trade in units of 40 Notes, representing $1,000 in principal amount.

 

PS-1


Table of Contents
  Optional Redemption - We may redeem the Notes in whole, but not in part, at a redemption price equal to 100% of the principal amount together with any accrued, but unpaid, interest thereon, on November 30, 2015, by giving at least five business days prior written notice to the trustee and to each registered holder of the Notes.

 

See “Pricing Supplement Summary – How Do the Notes Perform?” and “Specific Terms of the Notes” in the pricing supplement.

 

What Are Some of the Risks of the Notes?

 

  CPI Risk – Because the variable rate paid on the Notes is linked to the CPI, you are assuming the risk that the level of the CPI decreases or does not change relative to market interest rates. You are also assuming the risk that the Bureau of Labor Statistics changes the way in which the CPI is calculated, which may result in lower or no interest payments. The interest rate paid on the Notes and the value of the Notes, both of which are a function of the level of the CPI, may be less than the rate on debt securities with the same maturity issued by us or an issuer with a comparable security rating.

 

  A Trading Market for the Notes May Not Develop - Although the Notes are listed on the New York Stock Exchange, a trading market for your Notes may not develop. Barclays Capital Inc. and other affiliates of Barclays Bank PLC intend to engage in limited purchase and resale transactions. If they do, however, they are not required to do so and may stop at any time. We are not required to maintain any listing of the Notes on the New York Stock Exchange or any other exchange.

 

  Optional Redemption – We may choose to redeem the Notes on November 30, 2015, which is prior to their maturity date. If the Notes are redeemed on November 30, 2015, you may be unable to invest in securities with similar risk and yield as the Notes. Your ability to realize any increase in the level of the CPI is limited by our right to redeem the Notes prior to their scheduled maturity.

 

  No Principal Protection Unless You Hold the Notes at Maturity or the Optional Redemption Date – You will be entitled to receive at least the full principal amount of your Notes if you hold your Notes at the maturity date. If you hold your Notes at November 30, 2015 and we redeem the Notes on that date, as described in “Specific Terms of the Notes – Optional Redemption”, you will still receive the full principal amount of your Notes. The market value of the Notes may fluctuate between the date you purchase them and the maturity date. You should be willing to hold your Notes to maturity.

 

Is This the Right Investment for You?

 

The Notes are not suitable for all investors. The Notes may be a suitable investment for you if:

 

  You are willing to accept the risk that we may redeem your Notes at par on November 30, 2015.

 

  You are willing to hold the Notes to maturity.

 

  You believe the CPI will materially increase during the term of the Notes relative to market interest rates.

 

  You seek an investment that offers principal protection when the Notes are held at maturity or at November 30, 2015, which is the date on which we may redeem the Notes in full.

 

The Notes may not be a suitable investment for you if:

 

  You are not willing to accept the risk that we may redeem the your Notes at par on November 30, 2015.

 

  You are unable or unwilling to hold the Notes to maturity.

 

  You believe that there will be no material increase in the CPI during the term of the Notes relative to market interest rates.

 

What Are the Tax Consequences?

 

In the opinion of Sullivan & Cromwell LLP, the Notes will be treated for all tax purposes as variable rate debt instruments. If the Notes are so treated, you will include interest with respect to a Note as ordinary income in accordance with your method of accounting for U.S. federal income tax

 

PS-2


Table of Contents

purposes. You will recognize capital gain or loss upon the sale or maturity of your Notes in an amount equal to the difference between the amount you receive at such time and your tax basis in the Notes.

 

For a more complete discussion of the United States federal income tax consequences of your investment in the Notes, please see the discussion under “Supplemental Tax Considerations” in this pricing supplement.

 

How Do the Notes Perform?

 

Set forth below is an explanation of the steps necessary to calculate the return on the Notes for each interest payment date. Certain amounts used in this pricing supplement have been rounded to two decimal places for ease of presentation. Accordingly, certain calculations may yield results higher or lower than calculations made by the calculation agent in accordance with the calculation provisions described in the prospectus supplement.

 

You will not receive less than the principal amount of the Notes if you hold the Notes to maturity, or if we redeem the Notes on November 30, 2015, at our option.

 

Step 1: Calculate CPI Performance.

 

CPI Performance for each interest payment date is the annual percentage change in the CPI as of the month three months prior to the month of the interest reset date (the “reference month”).

 

CPI Performance will be calculated as follows:

 

CPI(F) – CPI(I)


CPI(I)

 

where,

 

CPI(F) = CPI for the applicable reference month; and

 

CPI(I) = CPI for the month one year prior to the applicable reference month.

 

For example, the CPI Performance on February 28, 2006 will reflect the percentage change in the CPI from November 2004 to November 2005.

 

Step 2: Calculate the annual interest rate for each interest payment date.

 

Annual interest rate = CPI Performance multiplied by 1.45, with a minimum interest payment of 0.00%. In no case will the interest payment on any interest payment date be less than 0.00% per annum.

 

Step 3: Calculate the interest payment amount payable for each interest payment date.

 

For each interest period, the calculation agent will calculate the coupon by multiplying the relevant principal amount by the annual interest rate for the relevant interest period. This amount will then be multiplied by the applicable day count fraction calculated on a 30/360 basis. The day count fraction will be equal to 90 days in an interest period divided by 360. No adjustments will be made in the event an interest reset date or an interest payment date is not a business day.

 

PS-3


Table of Contents

Example 1 - The Notes are redeemed in full on November 30, 2015.

 

 

Quarters From

Issue Date


  

CPI(i)


  

CPI(f)


  

CPI

Performance


  

Annual

Interest

Rate


  

Quarterly

Coupon


1

   108.3    112.0    3.42%    4.96%    1.24%

2

   112.0    116.6    4.13%    5.99%    1.50%

3

   116.6    119.5    2.45%    3.56%    0.89%

4

   119.5    121.8    1.92%    2.78%    0.70%

5

   121.8    124.1    1.91%    2.77%    0.69%

6

   124.1    125.6    1.19%    1.73%    0.43%

7

   125.6    129.7    3.30%    4.78%    1.20%

8

   129.7    134.9    3.97%    5.76%    1.44%

9

   134.9    141.3    4.74%    6.87%    1.72%

10

   141.3    148.1    4.82%    6.99%    1.75%

11

   148.1    154.4    4.27%    6.19%    1.55%

12

   154.4    161.1    4.31%    6.25%    1.56%

13

   161.1    168.4    4.54%    6.58%    1.65%

14

   168.4    176.5    4.81%    6.97%    1.74%

15

   176.5    186.0    5.41%    7.85%    1.96%

16

   186.0    196.5    5.62%    8.15%    2.04%

17

   196.5    205.8    4.72%    6.84%    1.71%

18

   205.8    169.4    5.05%    7.33%    1.83%

19

   169.4    168.5    5.69%    8.25%    2.06%

20

   168.5    170.3    5.08%    7.37%    1.84%

21

   170.3    169.5    -2.28%    -3.31%    0.00%

22

   169.5    170.0    0.30%    0.44%    0.11%

23

   170.0    167.5    -1.50%    -2.18%    0.00%

24

   167.5    165.8    -1.02%    -1.48%    0.00%

25

   165.8    168.2    1.50%    2.18%    0.54%

26

   168.2    167.5    -0.45%    -0.65%    0.00%

27

   167.5    173.3    3.46%    5.02%    1.26%

28

   173.3    181.0    4.46%    6.47%    1.62%

29

   181.0    191.1    5.56%    8.06%    2.02%

30

   191.1    200.6    5.00%    7.25%    1.81%

31

   200.6    216.1    7.72%    11.19%    2.80%

32

   216.1    234.3    8.40%    12.18%    3.05%

33

   234.3    252.5    7.80%    11.31%    2.83%

34

   252.5    276.3    9.40%    13.63%    3.41%

35

   276.3    301.7    9.20%    13.34%    3.34%

36

   301.7    333.4    10.50%    15.23%    3.81%

37

   333.4    358.6    7.56%    10.96%    2.74%

38

   358.6    390.0    8.76%    12.70%    3.18%

39

   390.0    420.2    7.75%    11.24%    2.81%

40

   420.2    448.2    6.65%    9.64%    2.41%
                        

Cumulative Rate of Return

             67.20%

 

PS-4


Table of Contents

Example 2 - The Notes are not redeemed on November 30, 2015.

 

Quarters From

Issue Date


  

CPI(i)


  

CPI(f)


  

CPI

Performance


  

Annual

Interest

Rate


  

Quarterly

Coupon


1

   196.0    202.7    3.42%    4.96%    1.24%

2

   202.7    211.1    4.13%    5.99%    1.50%

3

   211.1    216.3    2.45%    3.56%    0.89%

4

   216.3    220.4    1.92%    2.78%    0.70%

5

   220.4    224.6    1.91%    2.77%    0.69%

6

   224.6    227.3    1.19%    1.73%    0.43%

7

   227.3    234.8    3.30%    4.78%    1.20%

8

   234.8    244.1    3.97%    5.76%    1.44%

9

   244.1    255.7    4.74%    6.87%    1.72%

10

   255.7    268.0    4.82%    6.99%    1.75%

11

   268.0    279.4    4.27%    6.19%    1.55%

12

   279.4    291.5    4.31%    6.25%    1.56%

13

   291.5    304.7    4.54%    6.58%    1.65%

14

   304.7    319.4    4.81%    6.97%    1.74%

15

   319.4    336.7    5.41%    7.85%    1.96%

16

   336.7    355.6    5.62%    8.15%    2.04%

17

   355.6    372.4    4.72%    6.84%    1.71%

18

   372.4    391.2    5.05%    7.33%    1.83%

19

   391.2    413.5    5.69%    8.25%    2.06%

20

   413.5    434.5    5.08%    7.37%    1.84%

21

   434.5    424.6    -2.28%    -3.31%    0.00%

22

   424.6    425.8    0.30%    0.44%    0.11%

23

   425.8    419.5    -1.50%    -2.18%    0.00%

24

   419.5    415.2    -1.02%    -1.48%    0.00%

25

   415.2    421.4    1.50%    2.18%    0.54%

26

   421.4    419.5    -0.45%    -0.65%    0.00%

27

   419.5    434.0    3.46%    5.02%    1.26%

28

   434.0    453.4    4.46%    6.47%    1.62%

29

   453.4    478.6    5.56%    8.06%    2.02%

30

   478.6    502.5    5.00%    7.25%    1.81%

31

   502.5    541.3    7.72%    11.19%    2.80%

32

   541.3    586.8    8.40%    12.18%    3.05%

33

   586.8    632.6    7.80%    11.31%    2.83%

34

   632.6    692.0    9.40%    13.63%    3.41%

35

   692.0    755.7    9.20%    13.34%    3.34%

36

   755.7    835.0    10.50%    15.23%    3.81%

37

   835.0    898.2    7.56%    10.96%    2.74%

38

   898.2    976.9    8.76%    12.70%    3.18%

39

   976.9    1052.6    7.75%    11.24%    2.81%

40

   1052.6    1122.6    6.65%    9.64%    2.41%

41

   1122.6    1179.2    5.04%    7.31%    1.83%

42

   1179.2    1224.3    3.83%    5.55%    1.39%

43

   1224.3    1268.4    3.60%    5.22%    1.30%

44

   1268.4    1301.1    2.58%    3.74%    0.93%

45

   1301.1    1338.3    2.86%    4.15%    1.04%

46

   1338.3    1389.0    3.79%    5.50%    1.37%

47

   1389.0    1455.7    4.80%    6.96%    1.74%

 

PS-5


Table of Contents

Quarters From

Issue Date


  

CPI(i)


  

CPI(f)


  

CPI

Performance


  

Annual

Interest

Rate


  

Quarterly

Coupon


48

   1455.7    1517.1    4.22%    6.12%    1.53%

49

   1517.1    1581.9    4.27%    6.19%    1.55%

50

   1581.9    1644.4    3.95%    5.73%    1.43%

51

   1644.4    1705.3    3.70%    5.37%    1.34%

52

   1705.3    1769.4    3.76%    5.45%    1.36%

53

   1769.4    1825.0    3.14%    4.56%    1.14%

54

   1825.0    1894.4    3.80%    5.51%    1.38%

55

   1894.4    1937.1    2.26%    3.27%    0.82%

56

   1937.1    1971.3    1.77%    2.56%    0.64%

57

   1971.3    1953.8    -0.89%    -1.29%    0.00%

58

   1953.8    1934.8    -0.97%    -1.41%    0.00%

59

   1934.8    1993.5    3.03%    4.40%    1.10%

60

   1993.5    2066.3    3.65%    5.30%    1.32%

61

   2066.3    2156.3    4.36%    6.32%    1.58%

62

   2156.3    2251.9    4.43%    6.43%    1.61%

63

   2251.9    2340.3    3.93%    5.69%    1.42%

64

   2340.3    2433.1    3.96%    5.75%    1.44%

65

   2433.1    2534.7    4.17%    6.05%    1.51%

66

   2534.7    2646.7    4.42%    6.41%    1.60%

67

   2646.7    2778.5    4.98%    7.22%    1.80%

68

   2778.5    2922.1    5.17%    7.50%    1.87%

69

   2922.1    3048.9    4.34%    6.29%    1.57%

70

   3048.9    3190.6    4.65%    6.74%    1.68%

71

   3190.6    3357.6    5.23%    7.59%    1.90%

72

   3357.6    3514.5    4.67%    6.78%    1.69%

73

   3514.5    3731.0    6.16%    8.93%    2.23%

74

   3731.0    3958.8    6.11%    8.85%    2.21%

75

   3958.8    4152.6    4.90%    7.10%    1.77%

76

   4152.6    4275.7    2.96%    4.30%    1.07%

77

   4275.7    4390.0    2.67%    3.88%    0.97%

78

   4390.0    4515.3    2.85%    4.14%    1.03%

79

   4515.3    4652.6    3.04%    4.41%    1.10%

80

   4652.6    4770.9    2.54%    3.69%    0.92%

81

   4770.9    4892.0    2.54%    3.68%    0.92%

82

   4892.0    5031.0    2.84%    4.12%    1.03%

83

   5031.0    5169.5    2.75%    3.99%    1.00%

84

   5169.5    5324.8    3.00%    4.35%    1.09%

85

   5324.8    5501.7    3.32%    4.82%    1.20%

86

   5501.7    5653.6    2.76%    4.00%    1.00%

87

   5653.6    5783.5    2.30%    3.33%    0.83%

88

   5783.5    5908.1    2.15%    3.12%    0.78%

89

   5908.1    6008.7    1.70%    2.47%    0.62%

90

   6008.7    6091.3    1.37%    1.99%    0.50%

91

   6091.3    6193.9    1.68%    2.44%    0.61%

92

   6193.9    6286.1    1.49%    2.16%    0.54%

93

   6286.1    6387.5    1.61%    2.34%    0.58%

94

   6387.5    6497.7    1.73%    2.50%    0.63%

95

   6497.7    6625.3    1.96%    2.85%    0.71%

96

   6625.3    6799.4    2.63%    3.81%    0.95%

 

PS-6


Table of Contents

Quarters From

Issue Date


  

CPI(i)


  

CPI(f)


  

CPI

Performance


  

Annual

Interest

Rate


  

Quarterly

Coupon


97

   6799.4    6982.0    2.68%    3.89%    0.97%

98

   6982.0    7244.3    3.76%    5.45%    1.36%

99

   7244.3    7514.6    3.73%    5.41%    1.35%

100

   7514.6    7774.1    3.45%    5.01%    1.25%

101

   7774.1    8037.4    3.39%    4.91%    1.23%

102

   8037.4    8272.2    2.92%    4.23%    1.06%

103

   8272.2    8540.9    3.25%    4.71%    1.18%

104

   8540.9    8767.1    2.65%    3.84%    0.96%

105

   8767.1    8903.1    1.55%    2.25%    0.56%

106

   8903.1    9034.5    1.48%    2.14%    0.53%

107

   9034.5    9130.9    1.07%    1.55%    0.39%

108

   9130.9    9228.4    1.07%    1.55%    0.39%

109

   9228.4    9368.1    1.51%    2.20%    0.55%

110

   9368.1    9590.8    2.38%    3.45%    0.86%

111

   9590.8    9880.4    3.02%    4.38%    1.09%

112

   9880.4    10089.1    2.11%    3.06%    0.77%

113

   10089.1    10323.3    2.32%    3.36%    0.84%

114

   10323.3    10517.3    1.88%    2.73%    0.68%

115

   10517.3    10700.0    1.74%    2.52%    0.63%

116

   10700.0    11049.5    3.27%    4.74%    1.18%

117

   11049.5    11329.9    2.54%    3.68%    0.92%

118

   11329.9    11698.7    3.26%    4.72%    1.18%

119

   11698.7    12067.1    3.15%    4.57%    1.14%

120

   12067.1    12372.4    2.53%    3.67%    0.92%
                        

Cumulative Rate of Return

             156.43%

 

THE ABOVE EXAMPLES ARE FOR ILLUSTRATIVE PURPOSES ONLY.

 

 

PS-7


Table of Contents

Hypothetical Return Profile

 

The table set forth below shows the hypothetical interest rates that would have resulted from holding the Notes using the historical levels of the CPI from 1975 to 2005 as presented below. We obtained the historical information below from Bloomberg LLP. The historical levels of the CPI should not be taken as an indication of future levels of the CPI, and no assurance can be given as to the level of the CPI for any reference month. As a result, the hypothetical interest rates depicted in the table below should not be taken as an indication of the actual interest rates that will be paid on the interest payment dates.

 

Hypothetical Interest Payment Date


   CPI(i)

   CPI(f)

   CPI
Performance


    Annual
Interest
Rate


    Quarterly
Coupon


 

12/31/1975

   50.6    54.6    7.91 %   11.46 %   2.87 %

3/31/1976

   51.9    55.5    6.94 %   10.06 %   2.51 %

6/30/1976

   52.7    55.9    6.07 %   8.80 %   2.20 %

9/30/1976

   53.6    56.8    5.97 %   8.66 %   2.16 %

12/31/1976

   54.6    57.6    5.49 %   7.97 %   1.99 %

3/31/1977

   55.5    58.2    4.86 %   7.05 %   1.76 %

6/30/1977

   55.9    59.5    6.44 %   9.34 %   2.33 %

9/30/1977

   56.8    60.7    6.87 %   9.96 %   2.49 %

12/30/1977

   57.6    61.4    6.60 %   9.57 %   2.39 %

3/31/1978

   58.2    62.1    6.70 %   9.72 %   2.43 %

6/30/1978

   59.5    63.4    6.55 %   9.50 %   2.38 %

9/29/1978

   60.7    65.2    7.41 %   10.75 %   2.69 %

12/29/1978

   61.4    66.5    8.31 %   12.04 %   3.01 %

3/30/1979

   62.1    67.7    9.02 %   13.08 %   3.27 %

6/29/1979

   63.4    69.8    10.09 %   14.64 %   3.66 %

9/28/1979

   65.2    72.3    10.89 %   15.79 %   3.95 %

12/31/1979

   66.5    74.6    12.18 %   17.66 %   4.42 %

3/31/1980

   67.7    76.7    13.29 %   19.28 %   4.82 %

6/30/1980

   69.8    80.1    14.76 %   21.40 %   5.35 %

9/30/1980

   72.3    82.7    14.38 %   20.86 %   5.21 %

12/31/1980

   74.6    84.0    12.60 %   18.27 %   4.57 %

3/31/1981

   76.7    86.3    12.52 %   18.15 %   4.54 %

6/30/1981

   80.1    88.5    10.49 %   15.21 %   3.80 %

9/30/1981

   82.7    90.6    9.55 %   13.85 %   3.46 %

12/31/1981

   84.0    93.2    10.95 %   15.88 %   3.97 %

3/31/1982

   86.3    94.0    8.92 %   12.94 %   3.23 %

6/30/1982

   88.5    94.5    6.78 %   9.83 %   2.46 %

9/30/1982

   90.6    97.0    7.06 %   10.24 %   2.56 %

12/31/1982

   93.2    97.9    5.04 %   7.31 %   1.83 %

3/31/1983

   94.0    97.6    3.83 %   5.55 %   1.39 %

6/30/1983

   94.5    97.9    3.60 %   5.22 %   1.30 %

9/30/1983

   97.0    99.5    2.58 %   3.74 %   0.93 %

12/30/1983

   97.9    100.7    2.86 %   4.15 %   1.04 %

3/30/1984

   97.6    101.3    3.79 %   5.50 %   1.37 %

6/29/1984

   97.9    102.6    4.80 %   6.96 %   1.74 %

9/28/1984

   99.5    103.7    4.22 %   6.12 %   1.53 %

12/31/1984

   100.7    105.0    4.27 %   6.19 %   1.55 %

3/29/1985

   101.3    105.3    3.95 %   5.73 %   1.43 %

6/28/1985

   102.6    106.4    3.70 %   5.37 %   1.34 %

9/30/1985

   103.7    107.6    3.76 %   5.45 %   1.36 %

 

PS-8


Table of Contents

Hypothetical Interest Payment Date


   CPI(i)

   CPI(f)

   CPI
Performance


    Annual
Interest
Rate


    Quarterly
Coupon


 

12/31/1985

   105.0    108.3    3.14 %   4.56 %   1.14 %

3/31/1986

   105.3    109.3    3.80 %   5.51 %   1.38 %

6/30/1986

   106.4    108.8    2.26 %   3.27 %   0.82 %

9/30/1986

   107.6    109.5    1.77 %   2.56 %   0.64 %

12/31/1986

   108.3    110.2    1.75 %   2.54 %   0.64 %

3/31/1987

   109.3    110.5    1.10 %   1.59 %   0.40 %

6/30/1987

   108.8    112.1    3.03 %   4.40 %   1.10 %

9/30/1987

   109.5    113.5    3.65 %   5.30 %   1.32 %

12/31/1987

   110.2    115.0    4.36 %   6.32 %   1.58 %

3/31/1988

   110.5    115.4    4.43 %   6.43 %   1.61 %

6/30/1988

   112.1    116.5    3.93 %   5.69 %   1.42 %

9/30/1988

   113.5    118.0    3.96 %   5.75 %   1.44 %

12/30/1988

   115.0    119.8    4.17 %   6.05 %   1.51 %

3/31/1989

   115.4    120.5    4.42 %   6.41 %   1.60 %

6/30/1989

   116.5    122.3    4.98 %   7.22 %   1.80 %

9/29/1989

   118.0    124.1    5.17 %   7.50 %   1.87 %

12/29/1989

   119.8    125.0    4.34 %   6.29 %   1.57 %

3/30/1990

   120.5    126.1    4.65 %   6.74 %   1.68 %

6/29/1990

   122.3    128.7    5.23 %   7.59 %   1.90 %

9/28/1990

   124.1    129.9    4.67 %   6.78 %   1.69 %

12/31/1990

   125.0    132.7    6.16 %   8.93 %   2.23 %

3/29/1991

   126.1    133.8    6.11 %   8.85 %   2.21 %

6/28/1991

   128.7    135.0    4.90 %   7.10 %   1.77 %

9/30/1991

   129.9    136.0    4.70 %   6.81 %   1.70 %

12/31/1991

   132.7    137.2    3.39 %   4.92 %   1.23 %

3/31/1992

   133.8    137.9    3.06 %   4.44 %   1.11 %

6/30/1992

   135.0    139.3    3.19 %   4.62 %   1.15 %

9/30/1992

   136.0    140.2    3.09 %   4.48 %   1.12 %

12/31/1992

   137.2    141.3    2.99 %   4.33 %   1.08 %

3/31/1993

   137.9    141.9    2.90 %   4.21 %   1.05 %

6/30/1993

   139.3    143.6    3.09 %   4.48 %   1.12 %

9/30/1993

   140.2    144.4    3.00 %   4.34 %   1.09 %

12/31/1993

   141.3    145.1    2.69 %   3.90 %   0.97 %

3/31/1994

   141.9    145.8    2.75 %   3.99 %   1.00 %

6/30/1994

   143.6    147.2    2.51 %   3.64 %   0.91 %

9/30/1994

   144.4    148.0    2.49 %   3.61 %   0.90 %

12/30/1994

   145.1    149.4    2.96 %   4.30 %   1.07 %

3/31/1995

   145.8    149.7    2.67 %   3.88 %   0.97 %

6/30/1995

   147.2    151.4    2.85 %   4.14 %   1.03 %

9/29/1995

   148.0    152.5    3.04 %   4.41 %   1.10 %

12/29/1995

   149.4    153.2    2.54 %   3.69 %   0.92 %

3/29/1996

   149.7    153.5    2.54 %   3.68 %   0.92 %

6/28/1996

   151.4    155.7    2.84 %   4.12 %   1.03 %

9/30/1996

   152.5    156.7    2.75 %   3.99 %   1.00 %

12/31/1996

   153.2    157.8    3.00 %   4.35 %   1.09 %

3/31/1997

   153.5    158.6    3.32 %   4.82 %   1.20 %

6/30/1997

   155.7    160.0    2.76 %   4.00 %   1.00 %

9/30/1997

   156.7    160.3    2.30 %   3.33 %   0.83 %

12/31/1997

   157.8    161.2    2.15 %   3.12 %   0.78 %

 

PS-9


Table of Contents

Hypothetical Interest Payment Date


   CPI(i)

   CPI(f)

   CPI
Performance


    Annual
Interest
Rate


    Quarterly
Coupon


 

3/31/1998

   158.6    161.3    1.70 %   2.47 %   0.62 %

6/30/1998

   160.0    162.2    1.37 %   1.99 %   0.50 %

9/30/1998

   160.3    163.0    1.68 %   2.44 %   0.61 %

12/31/1998

   161.2    163.6    1.49 %   2.16 %   0.54 %

3/31/1999

   161.3    163.9    1.61 %   2.34 %   0.58 %

6/30/1999

   162.2    165.0    1.73 %   2.50 %   0.63 %

9/30/1999

   163.0    166.2    1.96 %   2.85 %   0.71 %

12/31/1999

   163.6    167.9    2.63 %   3.81 %   0.95 %

3/31/2000

   163.9    168.3    2.68 %   3.89 %   0.97 %

6/30/2000

   165.0    171.2    3.76 %   5.45 %   1.36 %

9/29/2000

   166.2    172.4    3.73 %   5.41 %   1.35 %

12/29/2000

   167.9    173.7    3.45 %   5.01 %   1.25 %

3/30/2001

   168.3    174.0    3.39 %   4.91 %   1.23 %

6/29/2001

   171.2    176.2    2.92 %   4.23 %   1.06 %

9/28/2001

   172.4    178.0    3.25 %   4.71 %   1.18 %

12/31/2001

   173.7    178.3    2.65 %   3.84 %   0.96 %

3/29/2002

   174.0    176.7    1.55 %   2.25 %   0.56 %

6/28/2002

   176.2    178.8    1.48 %   2.14 %   0.53 %

9/30/2002

   178.0    179.9    1.07 %   1.55 %   0.39 %

12/31/2002

   178.3    181.0    1.51 %   2.20 %   0.55 %

3/31/2003

   176.7    180.9    2.38 %   3.45 %   0.86 %

6/30/2003

   178.8    184.2    3.02 %   4.38 %   1.09 %

9/30/2003

   179.9    183.7    2.11 %   3.06 %   0.77 %

12/31/2003

   181.0    185.2    2.32 %   3.36 %   0.84 %

3/31/2004

   180.9    184.3    1.88 %   2.73 %   0.68 %

6/30/2004

   184.2    187.4    1.74 %   2.52 %   0.63 %

9/30/2004

   183.7    189.7    3.27 %   4.74 %   1.18 %

12/31/2004

   185.2    189.9    2.54 %   3.68 %   0.92 %

3/31/2005

   184.3    190.3    3.26 %   4.72 %   1.18 %

6/30/2005

   187.4    193.3    3.15 %   4.57 %   1.14 %

9/30/2005

   189.7    194.5    2.53 %   3.67 %   0.92 %

Cumulative Rate of Return

                         194.8 %

 

PS-10


Table of Contents

RISK FACTORS

 

The Notes are not secured debt and are riskier than ordinary unsecured debt securities. The return on the Notes is linked to the performance of the CPI, which is a measure of the average change in consumer prices over time for a fixed market basket of goods and services, including food, clothing, shelter, fuels, transportation, charges for doctors and dentists services and drugs. See “The Consumer Price Index” below for more information.

 

This section describes the most significant risks relating to an investment in the Notes. We urge you to read the following information about these risks, together with the other information in this pricing supplement and the accompanying prospectus and prospectus supplement, before investing in the Notes.

 

The Notes Are Intended to Be Held to Maturity or the Optional Redemption Date; You May Not Receive the Full Principal Amount of Your Notes if You Sell Your Notes Prior to Maturity

 

You will receive at least the full principal amount of your Notes if you hold your Notes to maturity. If you hold your Notes at November 30, 2015 and we choose to redeem the Notes on that date, as described in “Specific Terms of the Notes – Optional Redemption”, you will still receive the full principal amount of your Notes. If you sell your Notes in the secondary market prior to these dates, however, you may not receive the full principal amount of your Notes. You should be willing to hold your Notes to maturity.

 

The Interest Rate on the Notes Could Be Zero

 

The terms of the Notes differ from those of ordinary debt securities in that interest on the Notes is linked to changes in the level of the CPI. Based on the formula for determining the variable rate linked to the CPI, you will receive an interest payment on each interest payment date equal to CPI Performance multiplied by 1.45 per annum. We have no control over fluctuations in the value of the CPI.

 

The Interest Rate on the Notes May Be Below the Rate Otherwise Payable on Similar Variable Rate Securities Issued By Barclays Bank PLC

 

The variable interest rate applicable to any interest payment date is based on the change in level of the CPI for the applicable reference month compared to the CPI for the month one year prior to the applicable reference month. The interest rate paid on the Notes and the value of the Notes, both of which are a function of the level of the CPI, may be less than the rate on debt securities with the same maturity issued by Barclays Bank PLC (or an issuer with a comparable security rating). We have no control over fluctuations in the value of the CPI.

 

The CPI May Be Discontinued; The Manner in which the CPI is Calculated May Change in the Future

 

There can be no assurances that the CPI will not be discontinued or that the Bureau of Labor Statistics of the U.S. Labor Department will not change the method by which it calculates the CPI. Changes in which the CPI is calculated could reduce the level of the CPI and, as a consequence, lower the applicable interest rate on the Notes. As a consequence, the applicable interest rate on the Notes, and the value of the Notes, may be reduced if the method of calculating the CPI is modified. In addition, if the CPI is discontinued or substantially altered, a substitute index may be employed to calculate the interest payable on the Notes, as described in “Specific Terms of the Notes – Discontinuance of the CPI or Alteration of the Method of Calculation”. Such substitution may adversely affect the value of the Notes. We have no control over the way the CPI is calculated.

 

Historical Levels of the CPI Are Not an Indication of the Future Levels of the CPI

 

The historical levels of the CPI are not an indication of the future levels of the CPI over the term of the Notes. In the past, the CPI has experienced periods of volatility and such volatility may occur again in the future. Past fluctuations and trends in the CPI are not necessarily indicative of fluctuations or trends that may occur in the future.

 

PS-11


Table of Contents

Market Factors May Influence Whether We Exercise our Right to Redeem the Notes Prior to Their Scheduled Maturity

 

It is more likely that we will redeem the Notes prior to their maturity date if the applicable interest rate results in an amount of interest on the Notes greater than instruments of a comparable maturity and credit rating trading in the market. If the Notes are called prior to their maturity date, you may be unable to invest in securities with similar risk and yield as the Notes. Your ability to realize market value appreciation is limited by our right to redeem the Notes prior to their scheduled maturity.

 

The Market Value of the Notes May Be Influenced by Many Unpredictable Factors

 

The market value of your Notes may fluctuate between the date you purchase them and maturity. Several factors, many of which are beyond our control, will influence the market value of the Notes, including the following:

 

  the time remaining to the maturity of the Notes;

 

  the time remaining to the date on which we may give notice that we will redeem the Notes, at our option, on November 30, 2015.

 

  supply and demand for the Notes;

 

  the general interest rate environment;

 

  economic, financial, political, regulatory or judicial events that affect the financial markets generally and which may affect the level of the CPI; or

 

  the creditworthiness of Barclays Bank PLC.

 

These factors interrelate in complex ways, and the effect of one factor on the market value of your Notes may offset or enhance the effect of another factor.

 

There May Not Be an Active Trading Market in the Notes and Sales in the Secondary Market May Result in Significant Losses

 

Although the Notes are listed on the New York Stock Exchange, there can be no assurance that a secondary market for the Notes will develop. Barclays Capital Inc. and other affiliates of Barclays Bank PLC may engage in limited purchase and resale transactions in the Notes, although they are not required to do so. If they decide to engage in such transactions, they may stop at any time. We are not required to maintain any listing of the Notes on the New York Stock

Exchange or any other exchange.

 

Our Hedging Activities May Impair the Market Value of the Notes

 

As described below under “Use of Proceeds and Hedging” in this pricing supplement, we or one or more affiliates may carry out hedging activities that minimize our risks related to the Notes, including trading in instruments linked to the CPI. Although they are not expected to, any of these hedging activities may adversely affect the market price of the Notes. It is possible that we or one or more of our affiliates could receive substantial returns from these hedging activities while the market value of the Notes declines.

 

There Are No Security Interests in the Notes or Other Financial Instruments Held By Barclays Bank PLC

 

The indenture governing the Notes does not contain any restrictions on our ability or the ability of any of our affiliates to sell, pledge or otherwise convey all or any portion of the securities or other instruments acquired by us or our affiliates. Neither we nor any of our affiliates will pledge or otherwise hold those securities or other instruments for the benefit of holders of the Notes. Consequently, in the event of a bankruptcy, insolvency or liquidation involving us, any of those securities or instruments that we own will be subject to the claims of our creditors generally and will not be available specifically for the benefit of the holders of the Notes.

 

There Are Potential Conflicts of Interest Between You and the Calculation Agent

 

Initially, Barclays Bank PLC will serve as the calculation agent. The calculation agent will, among other things, make determinations regarding CPI Performance and the interest payable in respect of your Notes on each interest payment date. For a fuller description of the calculation agent’s role, see “Specific Terms of the Notes – Role of Calculation Agent” in this pricing supplement. The calculation agent will

 

PS-12


Table of Contents

exercise its judgment when performing its functions. For example, if the CPI is discontinued or the manner in which the CPI is calculated is substantially altered, the calculation agent may be required to choose a substitute index. Since this determination by the calculation agent may affect the market value of the Notes or the applicable interest rate on each interest payment date, the calculation agent may have a conflict of interest if it needs to make any such decision.

 

THE CONSUMER PRICE INDEX

 

The consumer price index, or the CPI, is the Non-Seasonally Adjusted U.S. City Average All Items Consumer Price Index published monthly by the Bureau of Labor Statistics of the U.S. Department of Labor. The Bureau of Labor Statistics makes the majority of its consumer price index data and press releases publicly available immediately at the time of release. This material may be accessed electronically by means of the Bureau of Labor Statistics’ home page on the Internet at http://www.bls.gov.

 

According to publicly available information, the CPI is a measure of the average change in consumer prices over time in a fixed market basket of goods and services, including food, clothing, shelter, fuels, transportation, drugs and charges for the services of doctors and dentists. User fees (such as water and sewer service) and sales and excise taxes paid by the consumer are included in determining consumer prices. Income taxes and investment items such as stocks, bonds and life insurance are not included. The CPI includes expenditures by urban wage earners and clerical workers, professional, managerial and technical workers, the self-employed, short-term workers, the unemployed, retirees and others not in the labor force. In calculating the CPI, price changes for the various items are averaged together with weights that represent their significance in the spending of urban households in the United States. The contents of the market basket of goods and services and the weights assigned to the various items are updated periodically to take into account changes in consumer expenditure patterns. The CPI is expressed in relative terms based on a reference period for which the level is set at 100. At present, the base reference period used by the Bureau of Labor Statistics is 1982-1984. Because the CPI for the 1982-1984 reference period is 100, an increase in the price of the fixed market basket of goods and services of 16.5 percent from that period would be shown as 116.5.

 

The Bureau of Labor Statistics has made numerous technical and methodological changes to the CPI, and is likely to continue to do so. Examples of recent methodological changes include:

 

  the use of regression models to adjust for improvements in the quality of various goods (televisions, personal computers, etc.);

 

  the introduction of geometric averages to account for consumer substitution within consumer price index categories; and

 

  changing the housing/shelter formula to increase rental equivalence estimation.

 

Similar changes in the future could affect the level of the CPI and therefore alter the interest payable on the Notes.

 

VALUATION OF THE NOTES

 

At Maturity or at the Optional Redemption Date

 

You will be entitled to receive at least the full principal amount of your Notes if you hold your Notes at the maturity date. If you hold your Notes at November 30, 2015 and we redeem the Notes on that date, as described in “Specific Terms of the Notes – Optional Redemption”, you will still receive the full principal amount of your Notes.

 

Prior to Maturity or the Optional Redemption Date

 

The market value of the Notes will be affected by several factors, many of which are beyond our control. We expect that generally the level of the CPI will affect the market value of the Notes more than any other factor. Other factors that may influence the market value of the Notes include, but are not limited to, the time remaining to maturity, the time remaining to the date on which we may give notice that we will redeem the Notes, at our option, on November 30, 2015, supply and demand for the Notes, the general interest rate environment, economic, financial, political, regulatory or judicial events that affect the financial markets generally and which may affect the level of the CPI, as well as the perceived creditworthiness of Barclays Bank PLC. See “Risk Factors” in this pricing supplement for further discussion of the factors that may influence the market value of the Notes prior to maturity.

 

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SPECIFIC TERMS OF THE NOTES

 

In this section, references to “holders” mean those who own the Notes registered in their own names, on the books that we or the trustee maintain for this purpose, and not those who own beneficial interests in the Notes registered in street name or in the Notes issued in book-entry form through The Depository Trust Company or another depositary. Owners of beneficial interests in the Notes should read the section entitled “Form, Denomination and Legal Ownership of Notes” in the accompanying prospectus supplement and “Description of Debt Securities – Legal Ownership; Form of Debt Securities” in the accompanying prospectus.

 

The Notes are part of a series of debt securities entitled “Medium-Term Notes, Series A” (the “medium-term notes”) that we may issue under the indenture, dated September 16, 2004, between Barclays Bank PLC and The Bank of New York, as trustee, from time to time. This pricing supplement summarizes specific financial and other terms that apply to the Notes. Terms that apply generally to all medium-term notes are described in “Description of Medium-Term Notes” in the accompanying prospectus supplement. The terms described here (i.e. in this pricing supplement) supplement those described in the accompanying prospectus and prospectus supplement and, if the terms described here are inconsistent with those described in those documents, the terms described here are controlling.

 

Please note that the information about the price to the public and the net proceeds to Barclays Bank PLC on the front cover of this pricing supplement relates only to the initial sale of the Notes. If you have purchased the Notes in a market resale transaction after the initial sale, information about the price and date of sale to you will be provided in a separate confirmation of sale.

 

We describe the terms of the Notes in more detail below.

 

Denomination

 

We will offer the Notes in minimum denominations of $25.00. However, the Notes will trade on the New York Stock Exchange in units of 40 Notes, representing $1,000 in principal amount.

 

Interest Payment Dates

 

Interest on the Notes will be payable quarterly in arrears on February 28, May 30, August 30, and November 30 of each year, commencing on February 28, 2006 and ending at maturity, unless the Notes are redeemed at our option as described under “Optional Redemption.” If any such day is not a business day, interest will be payable on the first following day that is a business day unless that day falls in the next calendar month, in which case the interest payment date will be the first preceding day that is a business day.

 

Interest Periods

 

The initial interest period will begin on, and include, the issue date and end on, but exclude, the first interest payment date (which is February 28, 2006). Each subsequent interest period will begin on, and include, the interest payment date for the preceding interest period and end on, but exclude, the next following interest payment date. The final interest period will end on the maturity date or any earlier redemption date.

 

Coupon

 

The Notes bear interest from the issue date at a variable rate linked to changes in the level of the CPI, payable on a quarterly basis in arrears on each interest payment date. The annual interest rate applicable to the Notes on each interest payment date will be equal to CPI Performance multiplied by 1.45. If the CPI Performance on any interest payment date is zero or negative, then no interest will be paid on the Notes for that interest payment date. For each interest period, the calculation agent will calculate the coupon by multiplying the relevant principal amount by the annual interest rate for the relevant interest period. This amount will then be multiplied by the applicable day count fraction calculated on a 30/360 basis. The day count fraction will be equal to 90 days in an interest period divided by 360. No adjustments will be made in the event an interest reset date or an interest payment date is not a business day.

 

CPI Performance on each interest payment date will be the annual percentage change in the CPI as of the month three months prior to the month of the relevant interest reset date (the “reference month”).

 

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CPI Performance will be calculated as follows:

 

CPI(F) – CPI(I)


CPI(I)

 

where,

 

CPI(F) = CPI for the applicable reference month; and

 

CPI(I) = CPI for the month one year prior to the applicable reference month.

 

For example, the CPI Performance on February 28, 2006 will reflect the percentage change in the CPI from November 2004 to November 2005.

 

Payment at Maturity or at the Optional

Redemption Date

 

You will be entitled to receive at least the full principal amount of your Notes if you hold your Notes at the maturity date. If you hold your Notes at November 30, 2015 and we redeem the Notes on that date, as described in “Specific Terms of the Notes – Optional Redemption”, you will still receive the full principal amount of your Notes.

 

Maturity Date

 

The maturity date will be November 30, 2035 or, if that day is not a business day, on the first following day that is a business day unless that day falls in the next calendar month, in which case the maturity date will be the first preceding day that is a business day.

 

In the event that payment at maturity is deferred beyond the stated maturity date, penalty interest will not accrue or be payable with respect to that deferred payment.

 

Optional Redemption

 

We may, at our election, redeem the Notes in whole, but not in part, on November 30, 2015, by giving at least five business days prior written notice to the holders and the trustee. Neither we nor any of our agents are required to notify you prior to any such redemption.

 

If we elect to redeem your Notes on November 30, 2015, we will pay you the principal amount of your Notes together with any accrued, but unpaid, interest thereon.

 

Record Dates for Interest

 

The regular record date relating to an interest payment date for the Notes will be the date 15 calendar days prior to the interest payment date, whether or not that date is a business day. For the purpose of determining the record holder at the close of business on a regular record date, the close of business will mean 5:00 p.m., New York City time, on that day.

 

Reference Price

 

The reference price for the CPI is the “Non-Seasonally Adjusted U.S. City Average All Items Consumer Price Index for All Urban Customers (CPI-U)” published by the Bureau of Labor Statistics of the U.S. Department of Labor and displayed on Bloomberg as “CPURNSA Index”.

 

If by 3:00 p.m. on any interest reset date the CPI is not reported on Bloomberg or on any successor service for any relevant month, but has been otherwise published by the Bureau of Labor Statistics, the Calculation Agent will determine the CPI as published by the Bureau of Labor Statistics using such other source as on its face appears to accurately set forth the CPI as published by the Bureau of Labor Statistics. If the CPI for the reference month is subsequently revised by the Bureau of Labor Statistics, the calculation agent will continue to use the CPI initially published by the Bureau of Labor Statistics on the interest reset date.

 

Changes in the Base Reference Period

 

As discussed above, the CPI is expressed in relative terms based on a reference period for which the level is set at 100. The base reference period currently used by the Bureau of Labor Statistics is 1982 – 1984. An increase in the price of the fixed market basket of goods and services of 16.5 percent from that period would be shown as 116.5. The Bureau of Labor Statistics rebases the CPI on occasion. The CPI was last rebased in January 1988, prior to which the standard reference base was 1967 = 100. If the Bureau of Labor Statistics rebases the CPI during the time the Notes are outstanding, the calculation agent will continue to calculate inflation using 1982 – 1984 as the base reference period for so long as the current CPI continues to be published.

 

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Any such conversion by the Bureau of Labor Statistics to a new reference base will not affect the measurement of the percent changes in the CPI from one time period to another, except for rounding differences. Rebasing might affect the published “headline” number often quoted in the financial press, but the inflation calculation for the Notes should not be adversely affected by any such rebasing because the CPI based on 1982 – 1984 will be calculated using the percentage changes of the rebased CPI.

 

Discontinuance of the CPI or Alteration

in the Method of Calculation

 

If the CPI is not published while the Notes are outstanding because the CPI has been discontinued, or if the manner in which the CPI is calculated is substantially altered while the Notes are outstanding, a substitute index may be chosen to replace the CPI for the purpose of determining interest payable on the Notes. The substitute index will be the index chosen by the Secretary of the Treasury, pursuant to 62 Federal Register 846-874 (January 6, 1997), for the purpose of determining the interest rates payable on the Department of the Treasury’s Inflation-Linked Treasuries. If no such securities are outstanding, the substitute index will be chosen by the calculation agent in good faith and in accordance with the general market practice prevailing at the time.

 

Default Amount on Acceleration

 

If an event of default occurs and the maturity of the Notes is accelerated, we will pay the default amount in respect of the principal of the Notes at maturity. We describe the default amount below under “– Default Amount”.

 

For the purpose of determining whether the holders of our medium-term notes, of which the Notes are a part, are entitled to take any action under the indenture, we will treat the stated principal amount of each Note outstanding as the principal amount of that Note. Although the terms of the Notes may differ from those of the other medium-term notes, holders of specified percentages in principal amount of all medium-term notes, together in some cases with other series of our debt securities, will be able to take action affecting all the medium-term notes, including the Notes. This action may involve changing some of the terms that apply to the medium-term notes, accelerating the maturity of the medium-term notes after a default or waiving some of our obligations under the indenture. We discuss these matters in the attached prospectus under “Description of Debt Securities – Modification and Waiver” and “– Senior Events of Default; Subordinated Events of Default and Defaults; Limitations of Remedies”.

 

Default Amount

 

The default amount for the Notes on any day will be an amount, determined by the calculation agent in its sole discretion, equal to the cost of having a qualified financial institution, of the kind and selected as described below, expressly assume all our payment and other obligations with respect to the Notes as of that day and as if no default or acceleration had occurred, or to undertake other obligations providing substantially equivalent economic value to you with respect to the Notes. That cost will equal:

 

  the lowest amount that a qualified financial institution would charge to effect this assumption or undertaking, plus

 

  the reasonable expenses, including reasonable attorneys’ fees, incurred by the holders of the Notes in preparing any documentation necessary for this assumption or undertaking.

 

During the default quotation period for the Notes, which we describe below, the holders of the Notes and/or we may request a qualified financial institution to provide a quotation of the amount it would charge to effect this assumption or undertaking. If either party obtains a quotation, it must notify the other party in writing of the quotation. The amount referred to in the first bullet point above will equal the lowest – or, if there is only one, the only – quotation obtained, and as to which notice is so given, during the default quotation period. With respect to any quotation, however, the party not obtaining the quotation may object, on reasonable and significant grounds, to the assumption or undertaking by the qualified financial institution

 

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providing the quotation and notify the other party in writing of those grounds within two business days after the last day of the default quotation period, in which case that quotation will be disregarded in determining the default amount.

 

Default Quotation Period

 

The default quotation period is the period beginning on the day the default amount first becomes due and ending on the third business day after that day, unless:

 

  no quotation of the kind referred to above is obtained, or

 

  every quotation of that kind obtained is objected to within five business days after the due date as described above.

 

If either of these two events occurs, the default quotation period will continue until the third business day after the first business day on which prompt notice of a quotation is given as described above. If that quotation is objected to as described above within five business days after that first business day, however, the default quotation period will continue as described in the prior sentence and this sentence.

 

In any event, if the default quotation period and the subsequent two business day objection period have not ended before the maturity date, then the default amount will equal the principal amount of the Notes.

 

Qualified Financial Institutions

 

For the purpose of determining the default amount at any time, a qualified financial institution must be a financial institution organized under the laws of any jurisdiction in the United States of America or Europe, which at that time has outstanding debt obligations with a stated maturity of one year or less from the date of issue and rated either:

 

  A-1 or higher by Standard & Poor’s, a division of the McGraw Hill Companies, Inc., or any successor, or any other comparable rating then used by that rating agency, or

 

  P-1 or higher by Moody’s Investors Service, Inc. or any successor, or any other comparable rating then used by that rating agency.

 

Manner of Payment and Delivery

 

Any payment on or delivery of the Notes at maturity or any earlier redemption date will be made to accounts designated by you and approved by us, or at the office of the trustee in New York City, but only when the Notes are surrendered to the trustee at that office. We also may make any payment or delivery in accordance with the applicable procedures of the depositary.

 

Clearance and Settlement

 

Although the Notes are debt securities, Depository Trust Company (“DTC”) participants that hold the Notes through DTC on behalf of investors will follow the settlement practices applicable to equity securities in DTC’s settlement system with respect to the primary distribution of the Notes and secondary market trading between DTC participants.

 

Business Day

 

When we refer to a “business day” with respect to the Notes, we mean a Monday, Tuesday, Wednesday, Thursday or Friday that is not a day on which banking institutions in London or New York City generally are authorized or obligated by law, regulation or executive order to close.

 

Modified Business Day

 

Any payment on the Notes that would otherwise be due on a day that is not a business day may instead be paid on the next day that is a business day, with the same effect as if paid on the original due date, except as described under “Interest Payment Dates” and “Maturity Date” above.

 

Role of Calculation Agent

 

Initially, Barclays Bank PLC will serve as the calculation agent. We may change the calculation agent after the original issue date of the Notes without notice. The calculation agent will make all determinations regarding the reference price of the CPI, business days, the default amount, CPI Performance and the interest payable in respect of your Notes on each interest payment date. If the CPI is discontinued or the

 

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way in which the CPI is calculated is substantially altered, the calculation agent may be required to choose a substitute index; see “Specific Terms of the Notes – Discontinuance of the CPI or Alteration in the Method of Calculation” in this pricing supplement. Absent manifest error, all determinations of the calculation agent will be final and binding on you and us, without any liability on the part of the calculation agent. You will not be entitled to any compensation from us for any loss suffered as a result of any of the above determinations by the calculation agent.

 

USE OF PROCEEDS AND HEDGING

 

We will use the net proceeds we receive from the sale of the Notes for the purposes we describe in the attached prospectus supplement under “Use of Proceeds.” We or our affiliates may also use those proceeds in transactions intended to hedge our obligations under the Notes as described below.

 

We or our affiliates may enter into hedging transactions involving purchases of inflation- linked United States treasury bonds and/or other inflation-linked instruments that we deem appropriate in connection with such hedging. From time to time, we or our affiliates may enter into additional hedging transactions or unwind those we have entered into.

 

We or our affiliates may acquire a long or short position in securities similar to the Notes from time to time and may, in our or their sole discretion, hold or resell those securities.

 

We or our affiliates may close out our or their hedge on or before the maturity date stated on the cover of this pricing supplement. That step may involve sales or purchases of inflation-linked United States treasury bonds and/or other inflation-linked instruments designed to track the performance of the CPI or other similar indexes.

 

The hedging activity discussed above may adversely affect the market value of the Notes from time to time. See “Risk Factors” in this pricing supplement for a discussion of these adverse effects.

 

 

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CAPITALIZATION OF BARCLAYS BANK PLC

 

The following table sets out the authorized and issued share capital of the Barclays Bank PLC and the Group’s total shareholders’ equity, indebtedness and contingent liabilities as at June 30, 2005. The information has been prepared in accordance with the International Financial Reporting Standards (IFRS).

 

     As at 30th June,
2005


 
     ‘000  

Share capital of Barclays Bank PLC

      

Authorised ordinary share capital – shares of £1 each

   3,000,000  

Authorised preference share capital – shares of £100 each

   400  

Authorised preference share capital – shares of £1 each

   1  

Authorised preference share capital – shares of U.S.$100 each

   400  

Authorised preference share capital – shares of U.S.$0.25 each

   80,000  

Authorised preference share capital – shares of 100 each

   400  

Ordinary shares – issued and fully paid shares of £1 each

   2,311,361  

Preference shares – issued and fully paid shares of £100 each

   75  

Preference shares – issued and fully paid shares of £1 each

   1  

Preference shares – issued and fully paid shares of U.S.$100 each

   100  

Preference shares – issued and fully paid shares of U.S.$0.25 each

    

Preference shares – issued and fully paid shares of 100 each

   240  
     £ million  

Group total shareholders’ equity

      

Called up share capital

   2,341  

Share premium

   8,786  

Available for sale reserve

   400  

Cash flow hedging reserve

   328  

Other shareholders’ funds

   2,551  

Translation reserve

   (35 )

Retained earnings

   7,479  
    

Shareholders’ equity (excluding minority interests)

   21,850  

Minority interests(1)

   200  
    

Total Shareholders’ equity

   22,050  
    

Group indebtedness(2)

      

Subordinated liabilities

      

Undated loan capital — non-convertible

   4,366  

Dated loan capital — convertible to preference shares

   13  

Dated loan capital — non-convertible(3)

   6,930  

Debt securities in issue(4)

   93,328  
    

Total indebtedness

   104,637  
    

Total capitalisation and indebtedness

   126,687  
    

Group contingent liabilities

      

Acceptances and endorsements

   271  

Assets pledged as collateral security

   35,703  

Other contingent liabilities

   8,503  
    

Total contingent liabilities

   44,477  
    


Notes:

(1) On the basis of Barclays Bank PLC’s internal unaudited IFRS figures, minority interests had increased to £1.2bn as at 30th November 2005. This increase primarily arose as a result of the transaction to acquire a majority stake in Absa Group Limited.
(2) “Group indebtedness” includes interest accrued as at 30th June 2005 in accordance with International Financial Reporting Standards.
(3) On September 9th 2005, Barclays Bank PLC issued $500,000,000 Callable Floating Rate Subordinated Notes due 2017.
(4) On the basis of Barclays Bank PLC’s internal unaudited IFRS figures, the amount of debt securities in issue increased from £93 billion to approximately £109 billion between 30th June 2005 and 30th November 2005. This represents an increase of approximately 17%.

 

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SUPPLEMENTAL TAX CONSIDERATIONS

 

The following is a general description of certain United States federal income tax considerations relating to the Notes. It does not purport to be a complete analysis of all tax considerations relating to the Notes. Prospective purchasers of the Notes should consult their tax advisers as to the consequences under the tax laws of the country of which they are resident for tax purposes and the tax laws of the United Kingdom and the United States of acquiring, holding and disposing of the Notes and receiving payments of interest, principal and/or other amounts under the Notes. This summary is based upon the law as in effect on the date of this pricing supplement and is subject to any change in law that may take effect after such date.

 

The discussion below supplements the discussion under “Tax Considerations” in the attached prospectus, and is subject to the limitations and exceptions set forth therein. This discussion is only applicable to you if you are a United States holder (as defined in the accompanying prospectus).

 

As described in the accompanying prospectus under “Tax Considerations – United States Taxation – U.S. Holders – Taxation of Debt Securities – Original Issue Discount – Variable Rate Debt Securities,” in the opinion of our counsel, Sullivan & Cromwell LLP, the Notes will be treated as variable rate debt instruments (“VRDIs”) under the Treasury Regulations applicable to original issue discount, and the interest payable on the Notes should be treated as “qualified stated interest”. Accordingly, you will generally include interest with respect to a Note as ordinary income in accordance with your method of accounting for United States federal income tax purposes. Interest paid on the Notes will be income from sources outside the United States subject to the rules regarding the foreign tax credit allowable to a United States holder. Under the foreign tax credit rules, interest paid in taxable years beginning before January 1, 2007 will generally be “passive” or “financial services” income, while interest paid in taxable years beginning after December 31, 2006 will generally be “passive” or “general” income which, in either case, is treated separately from other types of income for purposes of computing the foreign tax credit.

 

You will recognize gain or loss upon the sale, exchange, redemption or maturity of your Notes in an amount equal to the difference, if any, between the fair market value of the amount you receive at such time and your adjusted basis in your Notes. In general, your adjusted basis in your Notes will equal the amount you paid for your Notes.

 

Any gain you recognize upon the sale, exchange, redemption or maturity of your Notes will be capital gain or loss, except to the extent attributable to accrued but unpaid interest. Capital gain of a noncorporate U.S. holder that is recognized before January 1, 2009 is generally taxed at a maximum rate of 15% where the holder has a holding period greater than one year.

 

Backup Withholding and Information Reporting

 

Please see the discussion “Tax Considerations – United States Taxation – U.S. Holders – Information Reporting and Backup Withholding” in the accompanying prospectus for a description of the applicability of the backup withholding and information reporting rules to payments made on your Note.

 

SUPPLEMENTAL PLAN OF DISTRIBUTION

 

We expect that delivery of the Notes will be made against payment for the Notes on or about November 30, 2005, which is the 5th business day following the date of this pricing supplement (this settlement cycle being referred to as “T+5”). Under Rule 15c6-1 of the SEC under the Exchange Act, trades in the secondary market generally are required to settle in three business days, unless the parties to that trade expressly agree otherwise. Accordingly, purchasers who wish to trade Notes on the date of this pricing supplement or the next succeeding business day will be required, by virtue of the fact that the Notes initially will settle in T+5 to specify an alternate settlement cycle at the time of any such trade to prevent a failed settlement and should consult their own advisor.

 

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LOGO

 

$10,000,000

 

BARCLAYS BANK PLC

CALLABLE FLOATING RATE NOTES DUE NOVEMBER 30, 2035

LINKED TO CHANGES IN THE CONSUMER PRICE INDEX

 

AMENDMENT TO PRICING SUPPLEMENT

 

JANUARY 20, 2006

(TO PROSPECTUS DATED SEPTEMBER 21, 2005 AND

PROSPECTUS SUPPLEMENT DATED SEPTEMBER 22, 2005)

 


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