Notes issued at a substantial discount or premium. The market values of securities issued at a substantial discount (such as Zero Coupon Notes) or premium to their principal amount tend to fluctuate more in relation to general changes in interest rates than do prices for more conventional interest-bearing securities. Generally, the longer the remaining term of such securities, the greater the price volatility as compared to more conventional interest-bearing securities with comparable maturities. Risks related to Notes generally Set out below is a description of material risks relating to the Notes generally:
Notes issued at a substantial discount or premium. The market values of securities issued at a substantial discount or premium from their principal amount tend to fluctuate more in relation to general changes in interest rates than do prices for conventional interest-bearing securities. Generally, the longer the remaining term of the securities, the greater the price volatility as compared to conventional interest-bearing securities with comparable maturities. Notes subject to optional redenomination by the relevant Issuer An optional redemption feature of Notes is likely to limit their market value. Before or during any period when the relevant Issuer may elect to redeem Notes, the market value of those Notes generally will not rise substantially above the price at which they can be redeemed. Reinvestment risks An investor generally would not be able to reinvest the redemption proceeds at an effective interest rate as high as the interest rate on the Notes being redeemed and may only be able to do so at a significantly lower rate. Prospective investors should consider reinvestment risk in light of other investments available at that time. Although, if the terms and conditions of the Notes provide for frequent interest payment dates, investors are exposed to reinvestment risk if market interest rates decline. That is, investors may reinvest the interest income paid to them only at the relevant lower interest rates then prevailing. In addition, the Issuer's ability to also issue Fixed Rate Notes may affect the market value and the secondary market (if any) of the Floating Rate Notes (and vice versa). Subordination Generally One or more Tranches of Notes may be subordinated to any other Tranche of Notes. Unless specified otherwise in the relevant Offering Circular Supplement, payments of principal on any Tranche of Notes may not be made until all payments of principal due and payable on any Tranche of Notes ranking in priority thereto pursuant to the application of proceeds as set out in the Trust Deed (as defined below), have been made in full. Unless specified otherwise in the relevant Offering Circular Supplement, payments of interest on any Tranche of Notes may not be made until all payments of interest due and payable on any Tranche of Notes ranking in priority thereto pursuant to the application of proceeds as set out in the Trust Deed, have been made in full. Payments of principal and interest on the Notes are also subordinated to payment of certain expenses of the Issuer and amounts payable to any Ot...
Notes issued at a substantial discount or premium. The market values of securities issued at a substantial discount or premium from their principal amount tend to fluctuate more in relation to general changes in interest rates than do prices for conventional interest-bearing securities. The longer the remaining term of such securities, the greater the price volatility as compared to conventional interest-bearing securities with comparable maturities. Risks relating to Securities referencing a benchmark The regulation and reform of “benchmarks” may adversely affect the value of the Securities linked to or referencing such “benchmarks”. The Benchmarks Regulation could have a material impact on any Securities linked to or referencing a benchmark, in particular, if the methodology or other terms of the benchmark are changed in order to comply with the requirements of the Benchmarks Regulation. Such changes could, among other things, have the effect of reducing, increasing or otherwise affecting the volatility of the published rate or level of the relevant benchmark. Any of the international or national reforms, or the general increased regulatory scrutiny of benchmarks, could increase the costs and risks of administering or otherwise participating in the setting of a benchmark and complying with any such regulations or requirements. It is not possible to predict with certainty whether, and to what extent, LIBOR and EURIBOR or other benchmarks will continue to be supported going forwards. This may cause LIBOR and EURIBOR or other benchmarks to perform differently than they have done in the past and may have other consequences which cannot be predicted. Such factors may have (without limitation) the following effects on certain benchmarks: (i) discouraging market participants from continuing to administer or contribute to a benchmark;
