diff --git a/Cargo.lock b/Cargo.lock
index c59f07f8f..9657010b5 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -3009,7 +3009,7 @@ dependencies = [
 
 [[package]]
 name = "zcash_client_backend"
-version = "0.12.0"
+version = "0.12.1"
 dependencies = [
  "assert_matches",
  "base64",
diff --git a/zcash_client_backend/CHANGELOG.md b/zcash_client_backend/CHANGELOG.md
index 3cb0a5476..009c79ea2 100644
--- a/zcash_client_backend/CHANGELOG.md
+++ b/zcash_client_backend/CHANGELOG.md
@@ -7,6 +7,13 @@ and this library adheres to Rust's notion of
 
 ## [Unreleased]
 
+## [0.12.1] - 2024-03-27
+
+### Fixed
+- This release fixes a problem in note selection when sending to a transparent
+  recipient, whereby available funds were being incorrectly excluded from 
+  input selection.
+
 ## [0.12.0] - 2024-03-25
 
 ### Added
diff --git a/zcash_client_backend/Cargo.toml b/zcash_client_backend/Cargo.toml
index c2eb2c466..c547dc343 100644
--- a/zcash_client_backend/Cargo.toml
+++ b/zcash_client_backend/Cargo.toml
@@ -1,7 +1,7 @@
 [package]
 name = "zcash_client_backend"
 description = "APIs for creating shielded Zcash light clients"
-version = "0.12.0"
+version = "0.12.1"
 authors = [
     "Jack Grigg <jack@z.cash>",
     "Kris Nuttycombe <kris@electriccoin.co>"