(Updates with previous transaction in second paragraph.)
Oct. 28 (Bloomberg) -- Barclays Plc plans to sell U.K. residential mortgage-backed securities, according to three people with knowledge of the matter, in the London-based bank’s first offering of the debt in more than four years.
The notes will be in pounds and dollars and issued through Gracechurch Mortgage Financing Plc, a special purpose company set up to pool loans into bonds, said the people, who declined to be identified because the information is private. The bank’s last public sale of the debt was a 6 billion-pound ($9.7 billion) offering in May 2007, JPMorgan Chase & Co. data show.
Banks create asset-backed securities by packaging mortgages and consumer loans into bonds and selling them to investors. The notes allow lenders to raise funding more cheaply than by issuing unsecured debt.
--Editors: Andrew Reierson, Paul Armstrong
To contact the reporter on this story: Esteban Duarte in Madrid at email@example.com
To contact the editor responsible for this story: Paul Armstrong at Parmstrong10@bloomberg.net