Australian Bond Exchange

Rakuten Group Inc.

C2 Market Linked Products Series 2023/4 – Rakuten Group Inc

Fixed Rate Market Linked Product

You can now invest in an Australian dollar, fixed coupon, credit-linked security over Rakuten Group, Inc yielding a 6.50% per annum return.

Reference Entity

The Rakuten Group Inc. is a global leader in internet services based in Tokyo Japan. With approximately 1.6 billion members across the world, the group provides more than 70 services across a wide variety of sectors, including internet services such as e-commerce, travel and digital content; fintech services such as credit cards, banking securities, e-money and smartphone app payments; and mobile services such as the mobile carrier business.

Rakuten Group Inc is a listed Japanese household name (TSE:4755) with a market capitalisation of JPY 967 billion (equivalent to A$10.8 billion) as of May 2023.

For more information visit the website HERE.

Issuer:

C2 Specialist Investment Pty. Ltd.

Key Information

  • Coupon Rate: 6.50% per annum, paid quarterly
  • 2-year DPA (maturity 20 June 2025)
  • Issue Price: $100
  • ABE Code: C2RF065025
  • Minimum Investment: A$10,000
  • Currency: The note is denominated in AUD. All Coupons and any Final Value is delivered in Australian dollars, without exposure to the exchange rate.

 

Reference Asset:

 

  • Rakuten Group Inc JPY 2-year generic Credit Default Swap (CDS) contract
  • Bloomberg name: RAKUTN CDS JPY SR 2Y D14
  • Standard Reference Obligation: Rakuten Group Inc JPY 0.42% bond maturing 25 June 2027 (or equivalent successor ranked pari passu)
  • Bloomberg Name: RAKUTN 0.42 06/25/27
  • Bloomberg ISIN: JP396720DH64
  • Bond Rating: BB (S&P)
  • Debt Type: Senior Unsecured.

Risks

The risks listed below are not all the risks associated with the activities of an investment in a Credit-Linked Product. For a comprehensive description of the risks, please refer to the Key Risks section of the Term Sheet PDS.

Credit Risk:

Defaults on the underlying security may result in a loss of principal invested and/or interest due under those bonds and the underlying CDS contracts.

This risk is mitigated by:

  • The size and global reach of the underlying security;
  • The use of Tier One International banking partner.
Bond and CDS Market Risk:

A material decline in the value of the Rakuten Group Inc’s brand in relevant market segments will erode the value of the Notes and the underlying CDS contracts.

This risk is mitigated by:

  • 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:

  • The Australian Bond Exchange will facilitate the secondary market to enhance liquidity. 
Disclaimer: 
This webpage contains general advice only. You need to consult with your independent financial, tax and/or legal adviser, and consider your investment objectives, financial situation and your particular needs prior to making an investment decision. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement. The C2 Market Linked Products Series 2023/4 – Rakuten Group Inc is subject to investment risk, including possible delays in repayment and loss of income and capital repayment. Australian Bond Exchange Pty. Ltd. and its authorised representatives does not accept any liability for any errors or omissions of information supplied in this document except for liability under statute, which cannot be excluded.

Rakuten Group Inc. Documents

Flyer – C2 Market Linked Products 2023-4 – Rakuten Group Inc. 

Term Sheet PDS – C2 Market Linked Products – Series 2023-4 – Rakuten

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