Structured notes linked to credit risk of the Republic of Lithuania and IT sector stock basket
Information about the issues
- Detailed information about the issues is provided in the marketing
brochure (PDF, 240 KB, in Lithuanian) - You may subscribe for the notes on Internet
| SEB IT Sector | |
|---|---|
| Subscription period | August 2 – August 29, 2012 |
| Maturity | 1,266 days (3 years and 171 days) |
| Issue price* | LTL 100 |
| Structured note subscription fee makes 1 percent of the nominal value of the structured note. | |
| Nominal value | LTL 100 |
| Participation ratio | Shows the portion of gains in value of the underlying asset assigned to the structured note holder. |
| Preliminary (indicative) participation ratio | 20 % |
| Minimum participation ratio | 15 % |
| Actual participation ratio announcement date | August 31, 2012 |
| Stock basket to which the structured notes are linked | The basket consists of six stocks: Apple Inc, International Business Machines Corp, Microsoft Corp, AT&T Inc, Google Inc and Intel Corp. |
| Lithuanian Government notes to which the structured notes are linked | Lithuanian Government bonds (ISIN code LT0000611014) |
| Terms in which structured notes lose capital guarantee | If the credit risk-related event of the Republic of Lithuania occurs prior the structured notes’ redemption date, i.e., at least one of the credit risk-related events specified in the final terms of the structured notes, the structured notes will be necessarily bought from the investor. It means that the structured notes lose the capital guarantee. |
| Interim premium and premium for the absence of the credit risk-related event for the structured note | Equal to 2,8 % of the structured note nominal value paid out to the investor if no credit risk-related event of the Republic of Lithuania specified in the final terms of the structured notes prior to the notes redemption date occurs. |
| Interim premium and premium for the absence of the credit risk-related event payment dates | First interim premium - 17 February 2014 – LTL 4,11 Second interim premium - 17 February 2015 – LTL 2,80 Portion of the premium for the absence of the credit risk related event - 17 February 2016 – LTL 2,80 |
| Strike date (the date of the initial value of the stock basket) | August 31, 2012 |
| Redemption price of the structured note | Nominal structured note value + premium. |
The premium paid on the structured notes’ redemption date consists of two portions:
| |
| Redemption date | February 17, 2016 |
| Secondary market | On each business day indicative secondary market prices of the specified structured notes will be announced on SEB Bank website www.seb.lt. The secondary market prices (note buy / sell prices) may be lower or higher than the nominal structured note value, i.e., prices depend on change in value of the stock basket to which the structured notes are linked, and also on interest rate change, time remaining until the structured note redemption date, supply and demand for structured notes in the secondary market, secondary market prices of the Lithuanian Government notes to which the specified structured notes are linked. |
* The issue price of the structured note is discounted. The issue price on each particular subscription date is available here (PDF, 52 KB). Subscription fee terms and other structured note subscription terms are described in the Non-equity Securities Prospectus available on SEB Bank website www.seb.lt.
Documentation
| The Final Terms (PDF, 530 KB, in Lithuanian) | Base Prospectus (PDF, 5 MB, in Lithuanian) |
| Addendum to Base Prospectus (PDF, 2 MB, in Lithuanian) |
Validity of the agreement
The issue may be considered failed and cancelled if the actual value of the participation ratio set by the SEB Bank is lower than the minimum participation ratio indicated in the above Table.
The issue may be considered failed and cancelled:
- if the nominal value of SEB IT Sector issue is lower than LTL 6,000,000
- if any unpredictable economic, financial or political events, which might prevent success of the structured note issue, occur
If the issue is cancelled:
- announcement of cancellation of the issue will be available August 31, 2012 on the Bank‘s website www.seb.lt
- all signed agreements will be considered invalid and no later than within 5 (five) business days after the announcement of cancellation of the issue, the investor will be refunded for each subscribed SEB IT Sector issue note – LTL 100 to the bank account from which the investor‘s funds for subscription of the above notes were transferred, or to any other account of the investor‘s choice
Structured note issue may also be considered failed or cancelled if any event related to the risks of change in the financial instrument value calculation method and / or premium calculation occurs within the structured note subscription period. In such case, relevant information will be immediately announced on the Bank‘s website www.seb.lt. All signed agreements will be considered invalid and no later than within 5 (five) business days after the announcement of cancellation of the issue, the investor will be refunded the subscribed structured note price effective on such announcement date to the bank account from which the investor‘s funds for the note subscription were transferred, or to any other account of the investor‘s choice.
The structured note issue may also be considered failed or cancelled if any of the enforcement events (the credit risk-related event of the Republic of Lithuania) occurs within the structured note subscription period. In such case, relevant information will be immediately announced on the Bank‘s website www.seb.lt. All signed agreements will be considered invalid and no later than within 5 (five) business days after the announcement of cancellation of the issue, the investor will be refunded the subscribed structured note price effective on such announcement date to the bank account from which the investor‘s funds for the note subscription were transferred, or to any other account of the investor‘s choice.
The above information about structured notes linked to the credit risk of the Republic of Lithuania and to the stock basket (hereinafter referred to as “the financial instrument”) is a marketing material, and it shall not be deemed an investment research or any other individual or general type recommendation related to securities transactions, thus it has not been prepared in accordance with the investment research requirements established in acts of law.
This document does not constitute a recommendation or an offer to buy or sell any securities that might form the basis for any subsequent transaction or any portion hereof in future. SEB Bank is of the opinion that sources of the above information are reliable, however SEB Bank shall not assume any responsibility for its accuracy, authenticity or completeness. If any reference in this document is made to any investment research, investors are advised to read such investment report in full or to familiarise themselves with the information found on www.seb.se/mb/disclaimers. Tax-related information may change in future and may be no longer applicable in each specific case. Investment return is associated with risk, the value of the investments may increase or decrease thus former positive performance results are not indicative of future results. If you invest in the financial instruments denominated in foreign currency, any exchange rate fluctuations may affect the value of your investment return. Investors shall be deemed liable for the investment decisions taken, thus prior to each decision we recommend you to familiarize yourselves with the Non-equity Securities Prospectus and the risk factors related to such notes, and to independently or with the help of consultants to asses whether the risks are acceptable to you.
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