Reference Item Linked Notes definition

Reference Item Linked Notes means Notes that bear interest and/or provide that the redemption is calculated by reference to one or more specified underlying assets or bases of reference.

Reference Item Linked Notes means any Notes whose return (whether in respect of any interest payable (such note a “Reference Item Linked Interest Note”) on such Notes and/or their redemption amount) is linked to one or more Reference Items, including indices (“Index Linked Notes”) or shares of any company(ies) (“Equity Linked Notes”) or inflation indices (“Inflation Linked Notes”) or commodities or commodity indices (“Commodity Linked Notes”) or fund shares or units (“Fund Linked Notes”) or the credit of a specified entry or entries (“Credit Linked Notes”), or custom indices (“Custom Index Linked Notes”) or foreign exchange rates (“Foreign Exchange (FX) Rate Linked Notes”) or one or more other underlying reference asset(s) or any combination thereof (“Other Notes”) as specified in the Applicable Transaction Terms. Notes may provide that settlement will by way of cash settlement (“Cash Settled Notes”) or physical delivery (“Physical Delivery Notes”) as provided in the Applicable Transaction Terms.

Reference Item Linked Notes means Commodity Linked Notes, Currency Linked Notes, Equity Linked Notes, Fund Linked Notes, Index Linked Notes and/or Inflation Linked Notes, as applicable;

Examples of Reference Item Linked Notes in a sentence

• Changes in the composition of such Reference Item and factors (including those described above) which either affect or may affect the value of the constituents, will affect the value of such Reference Item and therefore may affect the return on an investment in Reference Item Linked Notes.

• Potential investors should also note that, whilst the market value of such Reference Item Linked Notes is linked to such Reference Item(s) and will be influenced (positively or negatively) by such Reference Item(s), any change may not be comparable and may be disproportionate to the nominal amount or calculation amount of such Note, for example because of leveraging.

• Accordingly, each potential investor should consult its own financial and legal advisers about the risk entailed by an investment in any Reference Item Linked Notes and the suitability of such Notes in light of its particular circumstances.

• At any given time, the number of Reference Item Linked Notes outstanding may be substantial.

• In contrast to a direct investment in the relevant Reference Item(s), Reference Item Linked Notes represent the right to receive payment of the Final Redemption Amount, as well as periodic payments of interest (if specified in the relevant Final Terms), all or some of which may be determined by reference to the performance of the relevant Reference Item(s).

• An investment in Reference Item Linked Notes therefore entails significant risks that are not associated with similar investments in a conventional fixed or floating rate debt security.

• Reference Item Linked Notes with Digital Option pay-outs will bear interest that depends on whether the relevant Digital Option Payment Condition is satisfied for the relevant Interest Period.

• Reference Item Linked Notes that bear interest by reference to the change in value of the relevant Reference Item over a specified observation period have similar characteristics and give rise to certain common risks.

• If an issue of Reference Item Linked Notes includes provisions dealing with the occurrence of disruption events and the Bank determines that, in relation to such Notes, a relevant date is a Disrupted Day, any consequential postponement or any alternative provisions for valuation provided in any Notes may have an adverse effect on the value of such Notes.

• However, no assurance can be given that the Bank will issue any Reference Item Linked Notes other than the Reference Item Linked Notes to which the relevant Final Terms relate.