Fixed Rate Bond Linked Security
We are launching a new Australian Dollar, Fixed Coupon, Credit Linked Note over Xerox Holdings Corporation soon.
Xerox Corporation is an American Fortune 500 corporation that sells print and digital document products and services in more than 160 countries. Their products and solutions provide their customers with an efficient, cost-effective printing and communications infrastructure. They were such a pioneer in office technology that in America the word ‘Xerox’ is still used as a verb to describe making a photocopy.
This is your opportunity to diversify your investments into a bond not previously available in Australia.
Key Information
C2 Bond Linked Security:
- 4.30-4.65% p.a. fixed rate
- 6.8 year note
- Coupons paid half yearly
Xerox Corporation Senior Unsecured Bond Reference Asset:
- Xerox Holdings Corporation Senior Unsecured Bond 5.5% Notes maturing 15 August 2028
- Bloomberg Name: XRX 5 1/2 08/15/28
- Bloomberg ISIN: USU98401AB58
- Debt Type: Senior Unsecured
- Currency Hedge: The Bond is denominated in AUD however the Units include a built in AUD/USD currency hedge designed to deliver Coupons and any Final Value in AUD, without exposure to the AUD/USD exchange rate (subject to no Early Maturity Event or Adjustment Event occurring)
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 Xerox Corporation 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;
ABE Documents
Key Information Document and Target Market Assessment are still being finalised. Enter your details above to be notified when available.