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Structured notes

Structured notes

The opportunity to invest in different markets

  • You can sell structured notes before the set redemption date (in such a case their price depends on market conditions)
  • You have to assume additional third party credit risk

Structured notes are debt securities issued by the bank and their profitability depends on changes in the value of another reference item (for instance, shares or commodities) and on the way a third party (Republic of Lithuania) fulfils its obligations related to its issued securities. When you buy structured notes, you assume the credit risk of the bank, as issuer of these securities, and of a third party (Republic of Lithuania).

Currently offered structured notes

  • We are not issuing structured notes at the moment

Previously offered structured notes

When you buy structured notes during the primary offering, a subscription fee may apply, which is 1% of the note nominal value. During the offering the price of structured notes may be discounted.

More information on applied rates 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 any SEB bank unit.


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.

Structured notes can be sold prior to redemption date on the secondary market; however, in this case, their price may be higher or lower than their face value.

Please note that structured notes are a risky investment tool, which appeals to investors able to accept higher investment risk.

If an event related to the credit risk of the Republic of Lithuania occurs during the maturity of structured notes, the bank will buy an issue of structured notes from investors on a compulsory basis and accounts would be settled for them in securities of the Republic of Lithuania, indicated in the final terms of a particular structured notes issue, or in other securities replacing these securities. When an event like this occurs, structured notes lose their capital guarantee, so investors can lose part or, should it come to the worst, all of their invested assets in case the Republic of Lithuania fails to settle accounts with them.

The information provided herein is for information purposes only, and it cannot be construed as a recommendation, order or invitation to invest and it may not constitute any basis or part of any subsequent transaction. Returns are exposed to risk, investments may rise or fall in value and the fact that the return is historically positive does not guarantee that it will remain such in the future. Before taking a decision regarding investment in structured notes, it is recommended that you should read prospectuses of the selected issues and obtain further information about all risk factors associated with these notes and assess whether these risks are acceptable yourself or with the help of consultants.

All the risk factors related to structured notes are described in the prospectuses of structured notes issues and in the publication "Description of Risks Related to Financial Instruments" (PDF, 150 KB, in Lithuanian). For more information, please call our 24/7 information line for private customers at +370 5 268 2800 or our information line for business customers at +370 5 268 2822, or visit a SEB Bankas unit of your choice.

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.

When you invest in structured notes, you can expect similar return on investment as from securities of the Government of the Republic of Lithuania. What is more, if there is a favourable change in the value of the financial instrument to which these notes are linked, you can earn additionally. Note that return on investment is greatly affected by whether any event related to the credit risk of the Government of the Republic of Lithuania occurs.

If an event related to the credit risk of the Republic of Lithuania occurs

If within the maturity term of structured notes an event related to the credit risk of the Republic of Lithuania occurs:

  • the structured notes will be mandatorily purchased from you
  • you will receive settlement for these notes in the form of securities of the Republic of Lithuania specified in the issue documentation or as relevant claims or in the form of other securities that replace those securities or as relevant claims for all or part of them, and in cash

When an event like this occurs, structured notes are not backed up by capital guarantee, so you can lose part or, should it come to the worst, all of your invested funds.

If an event related to the credit risk of the Republic of Lithuania does not occur

If no event related to the credit risk of the Republic of Lithuania occurs during the maturity term of structured notes, on the redemption date you will be paid:

Premium

The premium for favourable change in the value of the financial instrument can be paid not only on the redemption date, but also during the maturity term of structured notes.

Guaranteed interest

You can receive guaranteed interest for structured 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 on set dates

 

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.

Structured notes can be sold prior to redemption date on the secondary market; however, in this case, their price may be higher or lower than their face value.

Please note that structured notes are a risky investment tool, which appeals to investors able to accept higher investment risk.

If an event related to the credit risk of the Republic of Lithuania occurs during the maturity of structured notes, the bank will buy an issue of structured notes from investors on a compulsory basis and accounts would be settled for them in securities of the Republic of Lithuania, indicated in the final terms of a particular structured notes issue, or in other securities replacing these securities. When an event like this occurs, structured notes lose their capital guarantee, so investors can lose part or, should it come to the worst, all of their invested assets in case the Republic of Lithuania fails to settle accounts with them.

The information provided herein is for information purposes only, and it cannot be construed as a recommendation, order or invitation to invest and it may not constitute any basis or part of any subsequent transaction. Returns are exposed to risk, investments may rise or fall in value and the fact that the return is historically positive does not guarantee that it will remain such in the future. Before taking a decision regarding investment in structured notes, it is recommended that you should read prospectuses of the selected issues and obtain further information about all risk factors associated with these notes and assess whether these risks are acceptable yourself or with the help of consultants.

All the risk factors related to structured notes are described in the prospectuses of structured notes issues and in the publication "Description of Risks Related to Financial Instruments" (PDF, 150 KB, in Lithuanian). For more information, please call our 24/7 information line for private customers at +370 5 268 2800 or our information line for business customers at +370 5 268 2822, or visit a SEB Bankas unit of your choice.

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.

What does the amount receivable on the redemption date depend on?

For instance, structured notes are linked to the credit risk of the Republic of Lithuania and to another financial instrument.

The redemption price for such structured notes is calculated as follows:

redemption price of structured note = nominal value of structured note + premium

premium = part of premium for non-occurrence of an event related to the credit risk of the Republic of Lithuania + part of premium for increased value of financial instrument

The part of premium for non-occurrence of an event related to the credit risk of the Republic of Lithuania may be paid on the redemption date or during the maturity term of structured notes on the dates specified in the issue prospectus.

The part of premium for increased value of the financial instrument is calculated as follows:

premium = nominal value of structured note x participation ratio* x change in the value of financial instrument

* The participation ratio shows the percentage of the change in the value of the financial instrument that you benefit from.

Example

Subscription price of structured note EUR 100
Nominal value of structured note EUR 100
Participation ratio value 20%
Part of premium on redemption date for non-occurrence of event related to the credit risk of the Republic of Lithuania EUR 12
Change in the value of financial instrument 8%
Part of premium for increased value of financial instrument EUR 100 x 0.2 x 0.08 = EUR 1.60
Your amount receivable on redemption date 100 + 12 +1.60 = EUR 113.60

Please note that this example aims to explain how the amount receivable by the investor is calculated and there is no guarantee that the investor who has acquired structured notes will receive the amount specified here on the redemption date.

What does the amount receivable on the date of mandatory purchase of structured notes depend on?

For instance, structured notes are linked to the credit risk of the Republic of Lithuania and to another financial instrument.

If an event related to the credit risk of the Republic of Lithuania occurs and the bank mandatorily purchases structured notes from you, settlement will be made to you for mandatorily purchased structured notes based on this formula:

settlement for mandatorily purchased structured notes = securities of the Government of the Republic of Lithuania* + payment in cash**

* Securities of the Government of the Republic of Lithuania are notes of the Republic of Lithuania to which structured notes are linked or relevant claims or securities that replace those securities or claims for all or part of them.

** Payment in cash is a part of the value of the derivative transaction of the reference item to which the structured notes are linked on the termination date divided pro rata to the investors.

Example

Subscription price of structured note EUR 100
Securities of the Government of the Republic of Lithuania to which the structured note is linked Notes of the Government of the Republic of Lithuania

If an event related to the credit risk of the Republic of Lithuania occurs during the maturity term of structured notes and the bank mandatorily purchases structured notes from you, you will be paid for each structured note bought as follows:

Your receivable securities of the Government of the Republic of Lithuania on the mandatory purchase date Note of the Government of the Republic of Lithuania
Your receivable payment in cash on the mandatory purchase date EUR 0.50
Settlement for mandatorily purchased structured notes Note of the Government of the Republic of Lithuania + EUR 0.50

Please note that this example aims to explain how the amount receivable by the investor is calculated and there is no guarantee that the investor who has acquired structured notes will receive the amount specified here 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.

Structured notes can be sold prior to redemption date on the secondary market; however, in this case, their price may be higher or lower than their face value.

Please note that structured notes are a risky investment tool, which appeals to investors able to accept higher investment risk.

If an event related to the credit risk of the Republic of Lithuania occurs during the maturity of structured notes, the bank will buy an issue of structured notes from investors on a compulsory basis and accounts would be settled for them in securities of the Republic of Lithuania, indicated in the final terms of a particular structured notes issue, or in other securities replacing these securities. When an event like this occurs, structured notes lose their capital guarantee, so investors can lose part or, should it come to the worst, all of their invested assets in case the Republic of Lithuania fails to settle accounts with them.

The information provided herein is for information purposes only, and it cannot be construed as a recommendation, order or invitation to invest and it may not constitute any basis or part of any subsequent transaction. Returns are exposed to risk, investments may rise or fall in value and the fact that the return is historically positive does not guarantee that it will remain such in the future. Before taking a decision regarding investment in structured notes, it is recommended that you should read prospectuses of the selected issues and obtain further information about all risk factors associated with these notes and assess whether these risks are acceptable yourself or with the help of consultants.

All the risk factors related to structured notes are described in the prospectuses of structured notes issues and in the publication "Description of Risks Related to Financial Instruments" (PDF, 150 KB, in Lithuanian). For more information, please call our 24/7 information line for private customers at +370 5 268 2800 or our information line for business customers at +370 5 268 2822, or visit a SEB Bankas unit of your choice.

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.

Please note that structured notes are risky investment instruments, which should be chosen by investors who can assume higher investment risk.

Premium risk

If the value of the investment instruments to which the structured notes are linked changes unfavourably, investors will not receive a premium on the redemption date. In such a case investors will be paid the nominal value of structured notes on the redemption date.

Market risk

The price of structured notes, where these are sold to the bank before the redemption date, may be 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 for structured notes in the secondary market depends on changes in the value of the financial instrument to which the structured notes are linked, interest rate changes, time remaining until the redemption date, supply and demand of those structured notes on the market, the price for the securities of the Government of the Republic of Lithuania in the secondary market and other factors.

Liquidity risk

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

Bank credit risk

By investing in structured notes investors assume the issuer’s (bank’s) credit risk, i.e. the risk that the bank which issued these structured 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 structured notes is not insured by state company Indėlių ir investicijų draudimas.

Risk of investment loss

An investment is not backed up by capital guarantee if an event related to the credit risk of the Republic of Lithuania occurs during the maturity term of structured notes. In such cases structured notes are mandatorily purchased from investors and paid for. Investors will receive settlement for these notes in the form of securities of the Republic of Lithuania specified in the issue documentation or as relevant claims or in the form of other securities that replace those securities or as relevant claims for all or part of them, and in cash. The value of securities of the Government of the Republic of Lithuania transferred to investors or of securities that replace them and of the payment in cash may be lower than the nominal value of structured notes. The actual value of investment paid out to investors which is lower than the nominal value of the structured note means that the investment is not backed up by capital guarantee and investors may lose part, or should it come to the worst, all of their invested funds.

Credit risk of the Republic of Lithuania

Enforcement events specified in the documents of a specific issue of structured notes relate to the creditworthiness of the Republic of Lithuania, so there is a risk that when the bank mandatorily purchases structured notes from investors and, in exchange for them, transfers securities of the Republic of Lithuania specified in the issue documentation or relevant claims or other securities that replace those securities or relevant claims for all or part of them, the Republic of Lithuania will not settle with the investor.

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.

Structured notes can be sold prior to redemption date on the secondary market; however, in this case, their price may be higher or lower than their face value.

Please note that structured notes are a risky investment tool, which appeals to investors able to accept higher investment risk.

If an event related to the credit risk of the Republic of Lithuania occurs during the maturity of structured notes, the bank will buy an issue of structured notes from investors on a compulsory basis and accounts would be settled for them in securities of the Republic of Lithuania, indicated in the final terms of a particular structured notes issue, or in other securities replacing these securities. When an event like this occurs, structured notes lose their capital guarantee, so investors can lose part or, should it come to the worst, all of their invested assets in case the Republic of Lithuania fails to settle accounts with them.

The information provided herein is for information purposes only, and it cannot be construed as a recommendation, order or invitation to invest and it may not constitute any basis or part of any subsequent transaction. Returns are exposed to risk, investments may rise or fall in value and the fact that the return is historically positive does not guarantee that it will remain such in the future. Before taking a decision regarding investment in structured notes, it is recommended that you should read prospectuses of the selected issues and obtain further information about all risk factors associated with these notes and assess whether these risks are acceptable yourself or with the help of consultants.

All the risk factors related to structured notes are described in the prospectuses of structured notes issues and in the publication "Description of Risks Related to Financial Instruments" (PDF, 150 KB, in Lithuanian). For more information, please call our 24/7 information line for private customers at +370 5 268 2800 or our information line for business customers at +370 5 268 2822, or visit a SEB Bankas unit of your choice.

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.

Structured notes can be sold prior to redemption date on the secondary market; however, in this case, their price may be higher or lower than their face value.

Please note that structured notes are a risky investment tool, which appeals to investors able to accept higher investment risk.

If an event related to the credit risk of the Republic of Lithuania occurs during the maturity of structured notes, the bank will buy an issue of structured notes from investors on a compulsory basis and accounts would be settled for them in securities of the Republic of Lithuania, indicated in the final terms of a particular structured notes issue, or in other securities replacing these securities. When an event like this occurs, structured notes lose their capital guarantee, so investors can lose part or, should it come to the worst, all of their invested assets in case the Republic of Lithuania fails to settle accounts with them.

The information provided herein is for information purposes only, and it cannot be construed as a recommendation, order or invitation to invest and it may not constitute any basis or part of any subsequent transaction. Returns are exposed to risk, investments may rise or fall in value and the fact that the return is historically positive does not guarantee that it will remain such in the future. Before taking a decision regarding investment in structured notes, it is recommended that you should read prospectuses of the selected issues and obtain further information about all risk factors associated with these notes and assess whether these risks are acceptable yourself or with the help of consultants.

All the risk factors related to structured notes are described in the prospectuses of structured notes issues and in the publication "Description of Risks Related to Financial Instruments" (PDF, 150 KB, in Lithuanian). For more information, please call our 24/7 information line for private customers at +370 5 268 2800 or our information line for business customers at +370 5 268 2822, or visit a SEB Bankas unit of your choice.

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 structured notes?

You can buy structured notes in either of the two ways:

When you buy structured notes during the primary offering, a subscription fee may apply, which is 1% of the note nominal value. During the offering the price of structured notes may be discounted.

More information on applied rates 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 any SEB bank unit.

Would you like to sell structured notes?

You can sell acquired structured notes by visiting any SEB bank unit. You can sell structured 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.

Structured notes can be sold prior to redemption date on the secondary market; however, in this case, their price may be higher or lower than their face value.

Please note that structured notes are a risky investment tool, which appeals to investors able to accept higher investment risk.

If an event related to the credit risk of the Republic of Lithuania occurs during the maturity of structured notes, the bank will buy an issue of structured notes from investors on a compulsory basis and accounts would be settled for them in securities of the Republic of Lithuania, indicated in the final terms of a particular structured notes issue, or in other securities replacing these securities. When an event like this occurs, structured notes lose their capital guarantee, so investors can lose part or, should it come to the worst, all of their invested assets in case the Republic of Lithuania fails to settle accounts with them.

The information provided herein is for information purposes only, and it cannot be construed as a recommendation, order or invitation to invest and it may not constitute any basis or part of any subsequent transaction. Returns are exposed to risk, investments may rise or fall in value and the fact that the return is historically positive does not guarantee that it will remain such in the future. Before taking a decision regarding investment in structured notes, it is recommended that you should read prospectuses of the selected issues and obtain further information about all risk factors associated with these notes and assess whether these risks are acceptable yourself or with the help of consultants.

All the risk factors related to structured notes are described in the prospectuses of structured notes issues and in the publication "Description of Risks Related to Financial Instruments" (PDF, 150 KB, in Lithuanian). For more information, please call our 24/7 information line for private customers at +370 5 268 2800 or our information line for business customers at +370 5 268 2822, or visit a SEB Bankas unit of your choice.

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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