Fixed Rate Bond Linked Security
Jaguar Land Rover is a world-known and trusted luxury brand, with revenue of over 20 Billion Pounds, and producing over half a million cars per year. Owned by Tata Motors, which also owns Daewoo, and Hitachi Construction Machinery among other well-known international companies.
This is your opportunity to diversify your investments into a bond not usually available in Australia.
C2 Bond Linked Security:
- 4.50% p.a. fixed rate
- Based on Jaguar Land Rover Automotive PLC Senior Unsecured Bond
- 5 year note
- Will be added to ABE/IRESS trading platform to improve secondary market liquidity
Key Information
Reference Asset: Jaguar Land Rover Automotive PLC 6.875% Notes maturing 15 November 2026
Bloomberg Name: TTMTIN 6.875% 11/15/26
Bloomberg ISIN: XS2010037682
Debt Type: Senior Unsecured
Currency Hedge: As part of bringing the bond denominated in Euro to Australia, our structuring partner, C2 Specialist Investments, wrap the bonds in units that include a built-in AUD/EUR currency hedge designed to deliver coupons and any final value in AUD, without exposure to the AUD/EUR exchange rate.
Risks
The risks listed below are not all of the risks associated with the activities of an investment in Yield Enhanced Securities.
- Credit Risk: Defaults on the underlying security may result in a loss of principal invested and/or interest due under those Notes.
This risk is mitigated by:
(a) the size and global reach of the underlying security;
(b) the use of Tier One International banking partner
- Bond Market Risk: A material decline in the value of Jaguar brand in relevant market segments will erode the value of the underlying bond.
This risk is mitigated by:
(a) the factors referred to under ‘Credit Risk’ above;
- Liquidity risk. You may not be able to realise your investment when you want to. The Issuer Buy-Back facility is at the discretion of the Issuer. Issuer Buy-Back requests are determined at the Issuer’s discretion.
This risk is mitigated by:
(a) the Australian Bond Exchange will facilitate the secondary market to enhance liquidity;