Bache Commodities Group Launches Green Commodity Index

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Tue Jun 30, 2009 10:00am EDT

NEW YORK & LONDON--(Business Wire)--
Bache Commodities Group launched today the Bache Commodity Green IndexSM
(BCGISM) to offer investors a tool to invest in commodities with an
environmental focus. Bache Commodities Group is the commodities and financial
derivatives business of Prudential Financial, Inc. (NYSE:PRU). The group has
been an active participant in the commodities market for 120 years. 

"Bache`s Green Index will allow investors to participate in the markets for
these commodities, which are of growing importance in the global economy," said
Stephen Ilnitzki, senior vice president, Bache Commodities Group. "Building on
Bache`s strength in commodity markets, the Bache Commodity Green Index focuses
on commodities needed in the production of sustainable energy and the reduction
of carbon emissions. Compared with other green indices, only the Bache Commodity
Green Index holds a cross section of commodities from multiple market sectors
and employs the unique dynamic asset allocation trading strategy used on the
Bache Commodities Index." 

The BCGI comprises two components - the Bache Biofuel Composite and Bache Clear
Air Composite. The Bache Biofuel Composite includes agricultural commodities
such as corn and sugar used for ethanol production, along with oilseeds used for
biodiesel production. The Bache Biofuels Composite is allocated 65 percent to
products used in ethanol production and 35 percent to oilseeds. The constituents
and weights in the Bache Biofuels Composite will evolve to reflect changes in
the mix of commodities used in renewable fuels. 

The Bache Clean Air Composite comprises commodities directly related to reducing
the effects of climate change. These include carbon emission credits and certain
metals that are critical components in products such as catalytic converters
that reduce emissions of pollutants and greenhouse gases. The Bache Clean Air
Composite is currently weighted 70 percent in carbon credits and 30 percent in
greenhouse metals. These weights are based on estimates of the relative
liquidity of these components. Over time, the Bache Clean Air Composite is
likely to add more commodities that play a role in reducing and controlling
emissions. 

The BCGI has an initial allocation of 60 percent to the Bache Biofuels Composite
and 40 percent in the Bache Clean Air Composite. Biofuels are given a larger
initial weight in the BCGI - because biofuel markets are currently larger and
more developed. As more countries adopt carbon emissions caps, the BCGI may
change its weighting to reflect the increased focus on carbon and pollution
control markets. 

"In light of the significant investments being made in green technology and a
stronger regulatory environment that will require companies to participate in
cap and trade schemes around the world, we expect this market will grow
rapidly," added Ilnitzki. "Following our initial focus on European markets, we
expect to see growing interest in the Index in the U.S. and Asia as well as
other international markets. As the demand and use of green commodities change,
the index components will continue to evolve to reflect these changes." 

Bache Commodities Group is the global commodities and financial derivatives
business of Prudential Financial, Inc. With 120 years of experience in the
commodities markets, Bache Commodities Group is a leading player in global
commodities and financial markets. Bache Commodities Group offers a broad range
of commodity, financial futures and options capabilities, market making on a
spot and forward basis in both precious and base metals, as well as foreign
exchange, trading and clearing services on virtually any commodities or
derivatives exchange around the world. The U.S.-based company, Prudential Bache
Commodities, LLC is a full-service Futures Commissions Merchant, regulated by
the U.S. Commodities Futures Trading Commission and National Futures
Association. Another U.S.-based company, Prudential Bache Asset Management,
Inc., is registered with the U.S. Securities and Exchange Commission as an
investment adviser and as a commodity trading adviser with theCFTC. The
U.K.-based Bache Commodities Limited is authorized and regulated by the
Financial Services Authority. For more information, please visit
http://www.prudentialbache.com. 

Prudential Financial, Inc., a financial services leader with approximately $542
billion of assets under management as of March 31, 2009, has operations in the
United States, Asia, Europe, and Latin America. Leveraging its heritage of life
insurance and asset management expertise, Prudential Financial, Inc. is focused
on helping individual and institutional customers grow and protect their wealth.
The company`s well-known Rock symbol is an icon of strength, stability,
expertise and innovation that has stood the test of time. Prudential Financial,
Inc.'s businesses offer a variety of products and services, including life
insurance, annuities, retirement-related services, mutual funds, investment
management, and real estate services. For more information, please visit
http://www.news.prudential.com. 





Bache Commodities Group
Simon Locke, (1) 973-802-7373
or
Matt Ridsdale, (44) (0)20 7920 3160 

Copyright Business Wire 2009

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