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Reference item linked note

Reference item linked note

Investments you may have hesitated to make before

  • You can invest in stock, commodity and currency markets
  • On the redemption date you will get the note nominal value back
  • You can sell these notes before the set redemption date (in such cases their price depends on market conditions)

Reference item linked notes are non-equity securities, for which, on the set redemption date, you are paid their nominal value plus a premium on any favourable change in the value of the financial instrument to which the notes are linked. Guaranteed interest can be paid on these notes.

When you buy reference item linked notes during the initial offering, a subscription fee that equals 1% of the note nominal value may be applied. During the offering the price of notes can be discounted.

More information on applied fees is available in the document Securities services fees and commission charges (PDF, 150 KB). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

Reference item linked notes can be sold in the secondary market before the set redemption date, but in that case their price may be higher or lower than the note nominal value. This depends on changes in the value of the financial instrument to which the notes are linked, interest rate changes, time remaining until the notes redemption date, demand and supply of notes on the market and other factors.

By investing in these notes investors assume the issuer’s (bank’s) credit risk, i.e. the risk that the bank which issued the notes fails to settle with investors under the set terms and conditions. It should be noted that bank credit risk is not covered by insurance, i.e. the bank’s obligation to redeem the notes is not insured by state company Indėlių ir investicijų draudimas.

This content is for your information only and cannot be understood as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Investment return is associated with risk, the value of investments may increase or decrease, thus former positive performance results are not indicative of future results. Before you decide to invest in reference item linked notes you should familiarise yourself with issue prospectuses and related risk factors and independently or with the help of consultants assess whether the risks are acceptable to you.

For more information about the risk factors please refer to the issue prospectuses for these bonds and the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.

Reference item linked notes may be linked to various financial instruments (shares, commodities, indices, currency, etc.), so their profitability depends on changes in the value of these financial instruments.

Note nominal value and premium

If you buy these notes, on the set redemption date you’ll be paid the nominal value of notes plus a premium on any favourable changes in the value of the financial instrument to which the notes are linked:

  • if there is an unfavourable change in the value of the financial instrument, only the note nominal value will be paid out
  • if there is a favourable change in the value of the financial instrument, you’ll also be paid a premium (this can be paid both on the redemption date and during maturity)

Guaranteed interest

You can also receive guaranteed interest on reference item linked notes. It can be paid in either of the two ways:

  • paid out for the whole investment term on the redemption date
  • paid out periodically at set dates (for instance, once annually)

Risk premium

You can buy reference item linked notes with a risk premium, i.e. at a price higher than the note nominal value. The risk premium is intended to improve the participation ratio.

When you buy notes the subscription price of which equals the note nominal value (usually equals to EUR 100 or EUR 0.01 if the notes were issued in Litas), you don’t risk your sum invested: even if the change in value of the financial instrument to which the notes are linked is unfavourable you’ll get your invested amount back on the redemption date.

If you choose notes the subscription price of which is higher than the note nominal value, for instance, with a EUR 2.90 / LTL 10.00 risk premium, you are opting for a higher participation ratio. The higher the ratio, the more you’ll earn if the change in value of the financial instrument is favourable.

If you choose notes with the participation ratio over 100%, in the event of success you’ll earn more than you would having invested directly in financial instruments to which the acquired notes are linked.

Please be aware that when you buy notes with a risk premium, you are risking your additionally invested funds:

  • if the change in value of the financial instrument to which the notes are linked is unfavourable, you will not get additionally invested funds back
  • if on the redemption date the premium for the change in value of the financial instrument is lower than the paid risk premium, you’ll get only part of the invested funds back

 

For more information about structured investment instruments, investment risks, terms and prices of securities transactions call our 24/7 line +370 5 268 2800 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

Reference item linked notes can be sold in the secondary market before the set redemption date, but in that case their price may be higher or lower than the note nominal value. This depends on changes in the value of the financial instrument to which the notes are linked, interest rate changes, time remaining until the notes redemption date, demand and supply of notes on the market and other factors.

By investing in these notes investors assume the issuer’s (bank’s) credit risk, i.e. the risk that the bank which issued the notes fails to settle with investors under the set terms and conditions. It should be noted that bank credit risk is not covered by insurance, i.e. the bank’s obligation to redeem the notes is not insured by state company Indėlių ir investicijų draudimas.

This content is for your information only and cannot be understood as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Investment return is associated with risk, the value of investments may increase or decrease, thus former positive performance results are not indicative of future results. Before you decide to invest in reference item linked notes you should familiarise yourself with issue prospectuses and related risk factors and independently or with the help of consultants assess whether the risks are acceptable to you.

For more information about the risk factors please refer to the issue prospectuses for these bonds and the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.

Calculation of the premium paid for reference item linked notes on the redemption date

You’ll receive the premium if the value of the financial instrument to which the notes are linked changes favourably for the whole investment term.

The premium receivable for change in the value of the financial instrument is calculated as follows:

Note nominal value x participation ratio x change in the value of financial instrument

The note redemption price is calculated as follows:

Note nominal value + premium for change in the value of financial instrument + guaranteed interest (if available)

Example

Assumptions
  Note
without risk premium
Participation ratio 50%
Note
without risk premium
Participation ratio 100%
Note
with 10% risk premium
Participation ratio 150%
Note nominal value EUR 100 EUR 100 EUR 100
Note subscription price EUR 100 EUR 100 EUR 100
Participation ratio 50 % 100 % 150 %
Guaranteed interest for the whole investment term 3 % (EUR 3)
Estimated results
Estimated changes in the value of financial instrument Note
without risk premium
Participation ratio 50%
Note
without risk premium
Participation ratio 100 %
Note
with 10% risk premium
Participation ratio 150 %
Premium
amount
Interest
amount
Redemption
price
Premium
amount
Redemption
price
Premium
amount
Redemption
price
-10 % EUR 0 EUR 3 EUR 103 EUR 0 EUR 100 EUR 0 EUR 100
0 % EUR 0 EUR 3 EUR 103 EUR 0 EUR 100 EUR 0 EUR 100
5 % EUR 2.5 EUR 3 EUR 105.5 EUR 5 EUR 105 EUR 7.5 EUR 107.5
30 % EUR 15 EUR 3 EUR 118 EUR 30 EUR 130 EUR 45 EUR 145

Please note that these examples illustrate calculation of estimated amounts the investor should receive and there is no guarantee that the investor who acquired reference item linked notes will receive these amounts on the redemption date.

 

For more information about structured investment instruments, investment risks, terms and prices of securities transactions call our 24/7 line +370 5 268 2800 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

Reference item linked notes can be sold in the secondary market before the set redemption date, but in that case their price may be higher or lower than the note nominal value. This depends on changes in the value of the financial instrument to which the notes are linked, interest rate changes, time remaining until the notes redemption date, demand and supply of notes on the market and other factors.

By investing in these notes investors assume the issuer’s (bank’s) credit risk, i.e. the risk that the bank which issued the notes fails to settle with investors under the set terms and conditions. It should be noted that bank credit risk is not covered by insurance, i.e. the bank’s obligation to redeem the notes is not insured by state company Indėlių ir investicijų draudimas.

This content is for your information only and cannot be understood as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Investment return is associated with risk, the value of investments may increase or decrease, thus former positive performance results are not indicative of future results. Before you decide to invest in reference item linked notes you should familiarise yourself with issue prospectuses and related risk factors and independently or with the help of consultants assess whether the risks are acceptable to you.

For more information about the risk factors please refer to the issue prospectuses for these bonds and the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.

Premium risk

If the value of financial instruments to which the notes are linked changes unfavourably, the premium will not be paid out to the investor. In such a case the investor will receive the note nominal value on the redemption date. Whether the investor who acquired notes with a risk premium will get additionally invested funds (the difference between the note nominal value and subscription price) back depends on the amount of the premium paid out on the redemption date. The premium can be either higher or lower than the additionally invested funds, which means the investor may get none of the additionally invested amount back, get a part of it back or receive a higher amount.

Market risk

The price of reference item linked notes, where these are sold to the bank before the redemption date, may be either higher or lower than their nominal value, i.e. there is no guarantee that the investor will get the note nominal value back before the redemption date. The price of notes in the secondary market depends on changes in the value of the financial instrument to which the notes are linked, interest rate changes, time remaining until the redemption date, demand and supply of notes on the market and other factors.

Liquidity risk

Investors may incur losses if they want to sell their notes as quickly as possible or are unable to sell them to the bank for a certain time interval. The opportunity to sell notes to the bank before the redemption date depends on their liquidity in the secondary market.

Bank credit risk

By investing in reference item linked notes investors assume the issuer’s (bank’s) credit risk, i.e. the risk that the bank which issued these notes fails to settle with the investor under the established terms and conditions. It should be noted that bank credit risk is not covered by insurance, i.e. the bank’s obligation to redeem the notes is not insured by state company Indėlių ir investicijų draudimas.

Description of Risks Related to Financial Instruments (PDF, 150 KB, in Lithuanian)

For more information about structured investment instruments, investment risks, terms and prices of securities transactions call our 24/7 line +370 5 268 2800 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

Reference item linked notes can be sold in the secondary market before the set redemption date, but in that case their price may be higher or lower than the note nominal value. This depends on changes in the value of the financial instrument to which the notes are linked, interest rate changes, time remaining until the notes redemption date, demand and supply of notes on the market and other factors.

By investing in these notes investors assume the issuer’s (bank’s) credit risk, i.e. the risk that the bank which issued the notes fails to settle with investors under the set terms and conditions. It should be noted that bank credit risk is not covered by insurance, i.e. the bank’s obligation to redeem the notes is not insured by state company Indėlių ir investicijų draudimas.

This content is for your information only and cannot be understood as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Investment return is associated with risk, the value of investments may increase or decrease, thus former positive performance results are not indicative of future results. Before you decide to invest in reference item linked notes you should familiarise yourself with issue prospectuses and related risk factors and independently or with the help of consultants assess whether the risks are acceptable to you.

For more information about the risk factors please refer to the issue prospectuses for these bonds and the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.

For more information about structured investment instruments, investment risks, terms and prices of securities transactions call our 24/7 line +370 5 268 2800 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

Reference item linked notes can be sold in the secondary market before the set redemption date, but in that case their price may be higher or lower than the note nominal value. This depends on changes in the value of the financial instrument to which the notes are linked, interest rate changes, time remaining until the notes redemption date, demand and supply of notes on the market and other factors.

By investing in these notes investors assume the issuer’s (bank’s) credit risk, i.e. the risk that the bank which issued the notes fails to settle with investors under the set terms and conditions. It should be noted that bank credit risk is not covered by insurance, i.e. the bank’s obligation to redeem the notes is not insured by state company Indėlių ir investicijų draudimas.

This content is for your information only and cannot be understood as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Investment return is associated with risk, the value of investments may increase or decrease, thus former positive performance results are not indicative of future results. Before you decide to invest in reference item linked notes you should familiarise yourself with issue prospectuses and related risk factors and independently or with the help of consultants assess whether the risks are acceptable to you.

For more information about the risk factors please refer to the issue prospectuses for these bonds and the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.

Would you like to buy these notes?

There are two ways you can buy reference item linked notes:

When you buy reference item linked notes during the initial offering, a subscription fee that equals 1% of the note nominal value may be applied. During the offering the price of notes can be discounted.

More information on applied fees is available in the document Securities services fees and commission charges (PDF, 150 KB). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit a SEB bank unit of your choice.

Would you like to sell these notes?

You can sell acquired notes by visiting any SEB bank unit. You can sell reference item linked notes in the secondary market before the set redemption date, but in that case their price will depend on market conditions.

For more information about structured investment instruments, investment risks, terms and prices of securities transactions call our 24/7 line +370 5 268 2800 or visit a SEB bank unit of your choice.


We recommend that before you sign any financial service agreement you read the service terms carefully and consult the staff of the bank if you need to.

Reference item linked notes can be sold in the secondary market before the set redemption date, but in that case their price may be higher or lower than the note nominal value. This depends on changes in the value of the financial instrument to which the notes are linked, interest rate changes, time remaining until the notes redemption date, demand and supply of notes on the market and other factors.

By investing in these notes investors assume the issuer’s (bank’s) credit risk, i.e. the risk that the bank which issued the notes fails to settle with investors under the set terms and conditions. It should be noted that bank credit risk is not covered by insurance, i.e. the bank’s obligation to redeem the notes is not insured by state company Indėlių ir investicijų draudimas.

This content is for your information only and cannot be understood as personal recommendation, order or invitation to invest and may not constitute any basis or part of any subsequent transaction. Investment return is associated with risk, the value of investments may increase or decrease, thus former positive performance results are not indicative of future results. Before you decide to invest in reference item linked notes you should familiarise yourself with issue prospectuses and related risk factors and independently or with the help of consultants assess whether the risks are acceptable to you.

For more information about the risk factors please refer to the issue prospectuses for these bonds and the publication "Description of risks related to financial instruments" (PDF, 150 KB, in Lithuanian). Alternatively, you can call us on the 24/7 private customer line +370 5 268 2800 or business customer line +370 5 268 2822 or visit any SEB bank unit.

Please note that the services described here are not intended for investors within the jurisdiction other than that of SEB bank units providing these services and investment opportunities, authorisation to invest and investing in locations of certain jurisdictions, including the United States of America, Canada, Japan and Australia, may be unlawful. SEB bank may not advise on investment issues, promote investments, solicit or offer investments where any such may be unlawful. If you live or read information on this website at a location within the jurisdiction other than the one of the SEB bank unit which provides this information, you are responsible for compliance with the laws and other legal acts which may be applicable to you. If you need more information, please contact your SEB bank account manager or any SEB bank unit.

 

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