Australian Bond Exchange

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Investment Overview

You can now invest in an Australian Dollar, Fixed Coupon, bond linked note over rolls Royce Holdings PLC.

Rolls-Royce Holdings plc manufactures aerospace, marine, and industrial gas turbines for civil and military aircraft. The Company designs, constructs, and installs power generation, transmission, and distribution systems and equipment for the marine propulsion, oil and gas pumping, and defence markets.

  • Rolls-Royce is a global household name (London Stock Exchange: RR) and a member of the FTSE 100 index with a market capitalisation of GBP 7.87bn
  • The group operates through its three core divisions, namely civil aerospace, defence and power systems:
    • Civil Aerospace division is a major manufacturer of aero engines for the large commercial aircraft, regional jet and business aviation markets servicing 35 types of commercial aircraft powering 15,400 engines contributing GBP 4.54bn in revenues in 2021
    • Defence division is a market leader in aero engines for military transport and patrol aircraft with strong positions in combat and helicopter application servicing 150 customers in over 100 countries powering 20,000 engines contributing GBP 3.37bn in revenues in 2021
    • Power Systems division is a leading provider of high-speed reciprocating engines, complete propulsion systems and distributed energy solutions with 1,200 development, service product and dealership locations selling 20,000 reciprocating engines per year contributing GBP 2.75bn in revenues in 2021
  • Rolls-Royce posted GBP 10.9bn revenues in 2021 split geographically between North America (35%), Europe (34%), Asia (18%). Middle East (8%) and other (5%)

Key Information

Investment Details:

  • Issuer: C2 Specialist Investment Pty Ltd
  • Coupon Rate: 5.5% per annum paid every 6 months.
  • 3.75 year note (maturity February 2026)
  • Issue Price: $100
  • ABE Code: C2RF055026
  • 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.

Rolls-Royce Senior Unsecured Bond Reference Asset:

  • Rolls-Royce PLC Senior Unsecured Bond 4.625% Notes maturing 16 February 2026
  • Bloomberg Name: ROLLS 4 5/8 02/16/26 Corp
  • Bloomberg ISIN: XS2244322082
  • Debt Type: Senior Unsecured

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:

  • The size and global reach of the underlying security;
  • The use of Tier One International banking partner

Bond Market Risk: A material decline in the value of Rolls Royce brand in relevant market segments will erode the value of the underlying bond.

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;