Barclays Offers Exchange-Traded Note That Tracks S&P MLP Index

Barclays Plc (BARC), Britain’s second- biggest lender by assets, is offering as much as $250 million in exchange-traded notes tied to an index of master-limited partnerships and limited liability companies.

The iPath S&P MLP ETN, which started trading today under the ticker IMLP (IMLP), is linked to the volume-weighted average price of the Standard & Poor’s 500 MLP Index, according to a filing with the U.S. Securities and Exchange Commission yesterday. The ETN pays a coupon based on dividends minus fees.

The bank’s charges will not be greater than the coupon, according to the filing. MLPs are companies that pay no corporate income tax and distribute cash to owners of limited partnership units.

In July, UBS AG (UBS) started selling ETNs tied to the Alerian MLP Index, a group of 50 publicly traded companies that rely on assets, like pipelines, to provide returns. The Swiss bank began trading the securities after JPMorgan Chase & Co. (JPM) limited the shares of its own ETN tied to the Alerian Index. The JPMorgan note is the largest such note in the U.S. with $5.09 billion in market capitalization, Bloomberg data show.

The S&P MLP Index returned 2.7 percent over the past year. Mark Lane, a spokesman for Barclays, declined to comment.

To contact the reporter on this story: Kevin Dugan in New York at kdugan4@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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