Invest in a Bond-Linked Security linked to Jaguar Land Rover Automotive, returning 4.50% p.a.
The information below is a summary of this investment opportunity. Investors must obtain and read the replacement ‘Product Disclosure Document’ for this security dated 17 April 2023 (PDS), along with the ‘C2 Accumulator – Deferred Purchase Agreement – Master PDS’ dated 8 June 2021 (Master PDS) before investing in this opportunity.
Overview
Jaguar Land Rover Automotive Plc (Jaguar), a subsidiary of Tata Motors Ltd, is an automotive company that principally designs and manufactures high segment cars. It markets premium all-wheel drive vehicles and luxury sports vehicles under two brands, which include Land Rover and Jaguar.
This security a ‘Bond-Linked Security issued by an Australian Financial Services Licensee, and is not a corporate bond issued by Jaguar.
The security provides Investors with the opportunity to make an AUD investment, yet gain exposure to returns based on the credit risk of Jaguar (an opportunity usually available only to investors wishing to make a market-sized investment (USD 500,000) denominated in USD).
By investing in this security, investors will receive regular income in the form of coupons and 100% of the face value of your investment on maturity – all in AUD. All currency exposure has been hedged by the Issuer, and will apply except in certain situations described in the ‘Risks’ section below.
Note Disclosure Documents
- C2 Accumulator – Deferred Purchase Agreement – Master PDS (June 2021);
- C2 Bond Linked Securities Series 1 – Jaguar Land Rover Automotive PDS
Marketing Documentation
Key Terms
| Issuer | C2 Specialist Investment Pty Ltd ACN 622 433 032 |
|---|---|
| Custodian | C2 Nominees Pty Ltd (ACN 624 366 981 |
| Arranger | C2 Financial Services Pty Ltd ACN 621 428 635 AFSL 502171 |
| Coupon | 4.50%pa (fixed), paid semi-annually |
| Maturity Date | 19 November 2026 |
| Issue Price | $100 |
| Minimum Investment | $10,000 |
| ABE Code | C2JF04502026 |
Risks
This is an overview of the main risks associated with this investment. Further (and more complete) details of the main risks associated with this security are set out in the PDS.
- Capital invested is at risk – There is no capital protection or guarantee by the Australian government or any other party (including the Issuer). Therefore, if the Issuer or Jaguar default, you may not receive the amount you have invested on maturity.
- Credit exposures to Jaguar – This return on this security is linked to the Jaguar Senior Unsecured Note, issued in EUR and paying 6.875%pa, maturing on 15 November 2026 (Jaguar Bond). The performance of the Jaguar Bond depends on Jaguar meeting its obligations under the Jaguar Bond. Therefore, investors have an exposure to the credit worthiness of Jaguar.
- Value of the Units before the Maturity Date – The value of this bond-linked security before the Maturity Date will be determined by many factors, including the occurrence of an Early Maturity Event (eg Jaguar exercises its right to redeem the Jaguar Bond before the maturity date of the bond, if Jaguar default under its obligations under the Jaguar or if there is a negative impact on the rating of the Jaguar Bond arises as the result of a ‘change of control’ of Jaguar). In the case of an Early Maturity Event, the securities will be redeemed early and the foreign exchange hedge which has been put in place by the Issuer may not apply and investors may have exposure to the AUD/EUR exchange rate.
- Historical Performance – Historical performance of Jaguar or the Issuer are not an indication of their future performance.
- Liquidity risk – If you want to sell your securities before the Maturity Date, there may be a delay, or you may not be able to do so, or may not be able to do so within your desired timeframe.
- Indirect Investment Risk – Compared to a direct investment (including bonds) in Jaguar, the investor will not be entitled to receive dividend or other payments (if any) nor have any voting rights for corporate actions to do with Jaguar.
- Custodian risk. The Custodian is a related party of the Issuer. There is a risk that the Custodian may be unable to perform its obligations under the Custody Deed and investors may not receive certain money when such amounts become due to them. However, the Custodian is a special purpose vehicle set up to act as Custodian for these types of securities and other structured products and has no other obligations.
Disclaimer: This webpage has been prepared by ABE Distribution Pty. Ltd ACN 673 177 912 (“ABE”). ABE is a Corporate Authorised Representative number 1307088 of Novus Capital Limited ACN 006 711 995 AFSL 238168. The information contained in it is of a general nature only. It was prepared without considering your financial needs, circumstances and objectives. Before investing in this security, you should consider whether it is appropriate for your circumstances and review the Master PDS and PDS. This website may contain links to other third-party websites, some of which require a subscription to read. Such links are for your convenience only, and ABE does not recommend or endorse these third-party sites. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions, or other information contained in this website. This website may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control. Past performance is not an indication of future performance. To the maximum extent permitted by law ABE disclaims all liability and responsibility for any direct or indirect loss or damage that you may suffer as a result of relying on anything on this webpage.