AVVISO n.10826 20 Giugno 2011 SeDeX − LEV. CERTIFICATES
AVVISO n.10826 | 20 Giugno 2011 | SeDeX − LEV. CERTIFICATES |
Mittente del comunicato : Borsa Italiana
Societa' oggetto dell'Avviso
: BARCLAYS BANK PLC
Oggetto : Inizio negoziazione 'Leverage Certificates' 'BARCLAYS BANK PLC'
Testo del comunicato
Si veda allegato.
Disposizioni della Borsa
Strumenti finanziari: Index Linked Mini Long e Short Certificates su DAX e FTSEMIB
Emittente: BARCLAYS BANK PLC
Rating Emittente: Società di rating
Long term
Data report
Moody's Aa3 19/05/2010
Standard & Poor's AA- 29/01/2010
Fitch AA- 29/10/2009
Oggetto: INIZIO NEGOZIAZIONI IN BORSA
Data di inizio negoziazioni: 21/06/2011
Mercato di quotazione: Borsa - Comparto SEDEX “Leverage Certificates” Orari e modalità di negoziazione: Negoziazione continua e l’orario stabilito dall’art.
IA.5.1.5 delle Istruzioni
Operatore incaricato ad assolvere l’impegno di quotazione:
Barclays Bank PLC
Member ID Specialist: MM7388
CARATTERISTICHE SALIENTI DEI TITOLI OGGETTO DI QUOTAZIONE
Index Linked Mini Long e Short Certificates su DAX e FTSEMIB
Tipo di liquidazione: monetaria
Modalità di esercizio: europeo
DISPOSIZIONI DELLA BORSA ITALIANA
Dal giorno 21/06/2011, gli strumenti finanziari "Index Linked Mini Long e Short Certificates su DAX e FTSEMIB" (vedasi scheda riepilogativa delle caratteristiche dei securitised derivatives) verranno inseriti nel Listino Ufficiale, sezione Securitised Derivatives.
Allegati:
- Scheda riepilogativa delle caratteristiche dei securitised derivatives;
- Estratto del prospetto di quotazione dei Securitised Derivatives
Num. Serie | Codice Isin | Local Market TIDM | TIDM | Short Name | Long Name | Sottostante | Tipologia | Strike | Data Scadenza | Parità | Quantità | Lotto Negoziazione | EMS | Prima Barriera |
1 | GB00B3SVY583 | BA1024 | X905 | BA1024FTMIBMS | BARFTMIBSLMS21735,7AB21300E150616 | FTSE MIB Index | Bear | 21735,7 | 15/06/16 | 0,0001 | 2255000 | 1 | 16667 | 21300 |
4 | GB00B41JZS60 | BA1021 | X906 | BA1021DAXMS | BARDAXSLMS8224,38AB8050E150616 | DAX® (Total Return Index) | Bear | 8224,38 | 15/06/16 | 0,001 | 2255000 | 1 | 2155 | 8050 |
5 | GB00B44VVS16 | XX0000 | X0XX | XX0000XXXXX | BARDAXSLMS8040,71AB7870E150616 | DAX® (Total Return Index) | Bear | 8040,71 | 15/06/16 | 0,001 | 2255000 | 1 | 2551 | 7870 |
6 | GB00B4SV4T98 | BA1019 | X907 | BA1019DAXMS | BARDAXSLMS7938,67AB7770E150616 | DAX® (Total Return Index) | Bear | 7938,67 | 15/06/16 | 0,001 | 2255000 | 1 | 2841 | 7770 |
7 | XX00X0XXX000 | XX0000 | X908 | BA1018DAXMS | BARDAXSLMS7816,22AB7650E150616 | DAX® (Total Return Index) | Bear | 7816,22 | 15/06/16 | 0,001 | 2255000 | 1 | 3289 | 7650 |
8 | GB00B3XLJD64 | XX0000 | X0XX | XX0000XXXXX | BARDAXSLML5921,67AB6050E150616 | DAX® (Total Return Index) | Bull | 5921,67 | 15/06/16 | 0,001 | 2255000 | 1 | 2193 | 6050 |
9 | XX00X0XX0X00 | XX0000 | X8ZK | BA1016DAXML | BARDAXSLML6019,71AB6150E150616 | DAX® (Total Return Index) | Bull | 6019,71 | 15/06/16 | 0,001 | 0000000 | 0 | 0000 | 0000 |
10 | GB00B4Q0DS06 | BA1015 | X909 | BA1015DAXML | BARDAXSLML6117,75AB6250E150616 | DAX® (Total Return Index) | Bull | 6117,75 | 15/06/16 | 0,001 | 2255000 | 1 | 2660 | 6250 |
11 | GB00B4QBQL73 | XX0000 | X0XX | XX0000XXXXX | BARDAXSLML6313,83AB6450E150616 | DAX® (Total Return Index) | Bull | 6313,83 | 15/06/16 | 0,001 | 2255000 | 1 | 3333 | 6450 |
12 | GB00B40HNR68 | BA1013 | X90A | BA1013DAXML | BARDAXSLML6460,89AB6600E150616 | DAX® (Total Return Index) | Bull | 6460,89 | 15/06/16 | 0,001 | 2255000 | 1 | 4167 | 6600 |
Final Terms
BARCLAYS BANK PLC
(Incorporated with limited liability in England and Wales)
BARCLAYS CAPITAL (CAYMAN) LIMITED
(Incorporated with limited liability in the Cayman Islands)
GLOBAL STRUCTURED SECURITIES PROGRAMME
for the issue of Securities
BARCLAYS BANK PLC
2,255,000 FTSE MIB Index Linked Mini Short Certificates ISIN code: GB00B3SVY583
under the Global Structured Securities Programme Issue Price: EUR 0.15 per Security
This document constitutes the final terms of the Securities (the ‘‘Final Terms’‘) described herein for the purposes of Article 5.4 of the Directive 2003/71/EC and is prepared in connection with the Global Structured Securities Programme established by Barclays Bank PLC (the ‘‘Bank’‘) and Barclays Capital (Cayman) Limited (‘‘BCCL’‘) and is supplemental to and should be read in conjunction with the Base Prospectus dated 6 August 2010 as supplemented, amended, updated and/or restated from time to time, which constitutes a base prospectus (the ‘‘Base Prospectus’‘) for the purpose of the Directive 2003/71/EC. Full information on the Issuer and the offer of the Securities is only available on the basis of the combination of these Final Terms and the Base Prospectus. The Base Prospectus is available for viewing during normal business hours at the registered office of the Issuer and the specified office of the Issue and Paying Agent and copies may be obtained from such office. Words and expressions defined in the Base Prospectus and not defined in this document shall bear the same meanings when used herein.
The Issuer accepts responsibility for the information contained in these Final Terms. To the best of its knowledge and belief (having taken all reasonable care to ensure that such is the case) the information contained in these Final Terms is in accordance with the facts and does not contain anything likely to affect the import of such information.
Investors should refer to the sections headed ‘‘Risk Factors’‘ in the Base Prospectus for a discussion of certain matters that should be considered when making a decision to invest in the Securities.
Barclays Capital
Final Terms dated 16 June 2011
The distribution of this document and the offer of the Securities in certain jurisdictions may be restricted by law. Persons into whose possession these Final Terms come are required by the Bank to inform themselves about and to observe any such restrictions. Details of selling restrictions for various jurisdictions are set out in ‘‘Purchase and Sale’‘ in the Base Prospectus. In particular, the Securities have not been, and will not be, registered under the US Securities Act of 1933, as amended, and are subject to US tax law requirements. Trading in the Securities has not been approved by the US Commodity Futures Trading Commission under the US Commodity Exchange Act of 1936, as amended. Subject to certain exceptions, the Securities may not at any time be offered, sold or delivered in the United States or to US persons, nor may any US persons at any time trade or maintain a position in such Securities.
Part A
Terms and Conditions of the Securities
The Securities shall have the following terms and conditions, which shall complete, modify and/or amend the Base Conditions and/or any applicable Relevant Annex(es) set out in the Base Prospectus dated 6 August 2010.
Parties
Issuer: Barclays Bank PLC
Guarantor: N/A
Manager: Barclays Bank PLC
Determination Agent: Barclays Bank PLC
Issue and Paying Agent: The Bank of New York Mellon
Stabilising Manager: N/A
Registrar: N/A
CREST Agent: N/A
Paying Agents: N/A
Transfer Agent: N/A
Exchange Agent: N/A
Additional Agents: N/A
THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT) AND THE SECURITIES COMPRISE BEARER SECURITIES THAT ARE SUBJECT TO US TAX LAW REQUIREMENTS. SUBJECT TO CERTAIN EXCEPTIONS, THE SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT (‘‘REGULATION S’‘)). THESE FINAL TERMS HAVE BEEN PREPARED BY THE ISSUER FOR USE IN CONNECTION WITH THE OFFER AND SALE OF THE SECURITIES OUTSIDE THE UNITED STATES TO NON-US PERSONS IN RELIANCE ON REGULATION S AND FOR LISTING OF THE SECURITIES ON THE RELEVANT STOCK EXCHANGE, IF ANY, AS STATED HEREIN. FOR A DESCRIPTION OF THESE AND CERTAIN FURTHER RESTRICTIONS ON OFFERS AND SALES OF THE SECURITIES AND DISTRIBUTION OF THESE FINAL TERMS AND THE BASE PROSPECTUS AND THE SUPPLEMENTAL PROSPECTUS SEE ‘‘PURCHASE AND SALE’‘ IN THE BASE PROSPECTUS.
1 (i) Series: GSC1200
(ii) Tranche: 1
2 Currency: Euro (‘‘EUR’‘) (the ‘‘Issue Currency’‘)
3 Number of Warrants or Exercisable Certificates being issued:
4 Calculation Amount per Security as at the Issue Date:
5 Form:
(i) Global/Definitive/ Uncertificated and dematerialised:
2,255,000 Securities
1 Certificate
Global Bearer Securities: Permanent Global Security
(ii) NGN Form: N/A
(iii) Held under the NSS: N/A
(iv) CGN Form: Applicable
(v) CDIs: N/A
6 Trade Date: 15 June 2011
7 Issue Date: 15 June 2011
8 Issue Price: EUR 0.15 per Security.
9 Relevant Stock Exchange[s]: Italian Stock Exchange
10 The following Relevant Annex(es) shall apply to the Securities (specify each applicable Relevant Annex):
Equity Linked Annex Italian Securities Annex
Provisions relating to interest (if any) payable on the Securities
11 Interest: N/A
12 Interest Amount: N/A
13 Interest Rates:
(i) Fixed Rate: N/A
(ii) Floating Rate: N/A
(iii) Variable Rate: N/A
(iv) Zero Coupon: N/A
14 Screen Rate Determination: N/A
(i) Reference Rate: N/A
(ii) Relevant Screen Page: N/A
15 ISDA Determination: N/A
16 Margin: N/A
17 Minimum/Maximum Interest Rate:
N/A
18 Interest Commencement Date: N/A
19 Interest Determination Date: N/A
20 Interest Calculation Periods: N/A
21 Interest Payment Dates: N/A
22 Day Count Fraction: N/A
23 Fall back provisions, rounding provisions, denominator and any other terms relating to the method of calculating interest, if different from those set out in the Base Conditions:
Provisions relating to Exercise
N/A
24 (i) Exercise Style: European Style
(ii) Multiple Exercise Securities N/A
25 Call/Put Securities: Other Exercise Securities
26 Units: The Securities must be exercised in Units. Each Unit consists of 1 Security.
27 Exercise Price: N/A
28 Exercise Date(s): The Final Valuation Date
29 Potential Exercise Business Dates: N/A
30 Exercise Period: N/A
31 Expiration Date: Exercise Date
32 (i) Automatic Exercise: Applicable
(ii) Renouncement Notice Cut-Off Date:
(iii) Renouncement Notice Cut-Off Time:
33 Minimum Number Exercise Requirement:
The Business Day immediately following the Exercise Date
10 a.m. Milan Time N/A
34 Maximum Daily Number: N/A
35 Nominal Call Event: N/A
(i) Nominal Call Threshold Amount: N/A
(ii) Nominal Call Threshold Percentage:
N/A
36 Settlement Method: Cash Settlement
37 Settlement Currency: EUR
38 Settlement Number: As defined in Condition 24 of the Base Conditions
39 Terms relating to Cash Settled Securities:
(i) Exercise Cash Settlement Amount:
(ii) Exercise Cash Settlement Date:
In respect of each Security, a cash amount determined by the Determination Agent as follows: Xxx (0, CFLV – UV) × Parity
Where:
‘‘Parity’‘ means in respect of each Security, 0.0001.
‘‘UV’‘ is the Valuation Price on the Final Valuation Date.
‘‘CFLV’‘ is the Current Financing Level (as set out in the Schedule) in respect of the Final Valuation Date. ''Valuation Price'' means the price of the Reference
Asset calculated at the opening prices of the
component financial instruments of the Reference Asset on the Final Valuation Date.
‘‘Valuation Date’‘ and ‘‘Valuation Time’‘ has the meaning set out in Paragraph 47.
Further definitions are set out in the Schedule.
The 10th Business Day following the Exercise Date, scheduled to be 29 June 2016
(iii) Early Cash Settlement Amount: As defined in Condition 24 of the Base Conditions
(iv) Early Cancellation Date: As defined in Condition 24 of the Base Conditions
40 Specified Early Cancellation Event: Applicable.
If, at any time on any day from, and including, the Issue Date, to and including the Final Valuation Date the Issuer determines in good faith and in a reasonable manner that the market price of the Reference Asset is equal to, or higher than, the prevailing Current Stop Loss Level (as further defined in the Schedule) (a ‘‘Stop Loss Termination Event’‘ and the date of such occurrence, the ‘‘Stop Loss Termination Event Date’‘), the Issuer shall notify the Securityholder of the occurrence of the Stop Loss Termination Event and the Specified Early Cash Settlement Amount as soon as calculated and shall cancel all of the Securities (in whole only) on the Specified Early Cash Cancellation Date.
(i) Automatic early cancellation:
Applicable with respect to a Stop Loss Termination Event.
(ii) Cash Settled Securities: Applicable
(a) Specified Early Cash Settlement Amount:
(b) Specified Early Cash Cancellation Date:
In respect of each Security, a cash amount determined by the Determination Agent in good faith and in a reasonable manner on the relevant Valuation Date as follows:
Max (0, CFLT – SLTRP) × Parity
Where:
‘‘Parity’‘ means in respect of each Security, 0.0001. ‘‘SLTRP’‘ is the Stop Loss Termination Reference Price.
‘‘CFLT’‘ is the Current Financing Level (as set out in the Schedule) in respect of the relevant Valuation Date.
‘‘Stop Loss Termination Reference Price’‘ means, in respect of the relevant Valuation Date the highest price of the Reference Asset on the Exchange on the Stop Loss Termination Event Date.
Further definitions are set out in the Schedule.
5th Business Day following the relevant Valuation Date
(iii) Physically Delivered Securities: N/A
(iv) Specified Early Cancellation Notice Period:
The Issuer shall promptly notify the Securityholder of the occurrence of a Specified Early Redemption Event.
41 Call Option: Applicable. The Issuer may cancel all Securities in whole in accordance with the below.
(i) Cash Settled Securities:
(a) Issuer Call Optional Cash Settlement Amount:
In respect of each Security, a cash amount determined by the Determination Agent on the relevant Valuation Date as follows:
Max (0, CFLc – Uc) × Parity Where;
‘‘Call Option Notice Date’‘ means the Business Day on which the Issuer gives notice to the Securityholders.
‘‘Call Option Valuation Date’‘ means the first Scheduled Trading Day falling 6 months following the Call Option Notice Date.
‘‘Parity’‘ means in respect of each Security, 0.0001.
‘‘Uc’‘ is the Valuation Price on the Call Option Valuation Date.
‘‘CFLc’‘ is the Current Financing Level (as set out in the Schedule) in respect of the Call Option Valuation Date.
''Valuation Price'' means the price of the Reference Asset calculated at the opening prices of the component financial instruments of the Reference Asset on the Call Option Valuation Date.
(ii) Optional Cash Settlement Date:
(iii) Issuer Option Exercise Period:
5th Business Day following the Call Option Valuation Date
On any Business Day, from and including the first Business Day falling 1 year following the Issue Date to but excluding the Business Day falling 6 months preceding the Final Valuation Date
(iv) Issuer Notice Period: Not less than 6 months notice
42 Early Exercise Trigger Event: N/A
43 Terms relating to Physically Delivered Securities:
N/A
44 Multiplier: See the definition of Parity above
45 Additional Disruption Events in addition to those specified in Condition 24 of the Base Conditions and any applicable Relevant Annex:
(i) Affected Jurisdiction Hedging Disruption:
(ii) Affected Jurisdiction Increased Cost of Hedging:
N/A N/A
(iii) Affected Jurisdiction: N/A
(iv) Other Additional Disruption Events:
N/A
(v) The following shall not N/A
constitute Additional Disruption Events:
46 Share Linked Securities: N/A
47 Index Linked Securities: Applicable
Index | FTSE MIB Index |
Reference Asset Currency | EUR |
Reuters Code (for identification purposes only) | .FTMIB |
Bloomberg Ticker (for identification purposes only) | FTSEMIB |
Index Sponsor | FTSE International Limited |
(i) Index/Indices (each a ‘‘Reference Asset’‘)
(ii) Future Price Valuation: N/A
(iii) Exchange-traded Contract: N/A
(iv) Exchange(s):
(v) Related Exchange(s): All Exchanges
(vi) Exchange Rate: N/A
(vii) Weighting for each Reference Asset comprising the Basket of Reference Assets:
(viii) Index Level of each Reference Asset:
N/A
N/A
(ix) Valuation Date: (i) In respect of the determination of the Exercise Cash Settlement Amount, the date scheduled to be 15 June 2016 (the ‘‘Final Valuation Date’‘).
(ii) In respect of a Stop Loss Termination Event, the Valuation Date shall be, the Stop Loss Termination Event Date.
(iii) In respect of the determination of the Issuer Call Optional Cash Settlement Amount, the Call Option Valuation
Date.
(x) Averaging: N/A
(xi) Valuation Time: As per the Equity Linked Annex
(xii) Additional Disruption Event in respect of Index Linked Securities:
N/A
(xiii) FX Disruption Event: N/A
(xiv) Other adjustments: N/A
48 Inflation Linked Securities: N/A
49 FX Linked Securities: N/A
50 Credit Linked Securities: N/A
51 Commodity Linked Securities: N/A
52 Debt Components: N/A
53 Interest Rate Components: N/A
54 Additional terms and conditions relating to the Securities:
Additional provisions relating to Settlement
N/A
55 Minimum Settlement Amount N/A
Settlement in respect of APK Registered Securities, Dutch Securities, Italian Securities, Swedish Registered Securities, VPS Registered Securities or Spanish Securities:
56 Settlement in respect of Swedish Registered Securities:
57 Additional provisions relating to payment of Exercise Price:
58 Additional provisions relating to Taxes and Settlement Expenses:
Definitions
N/A
N/A N/A N/A
59 Definition of In-The-Money: As defined in Condition 24 of the Base Conditions
60 Additional Business Centre(s): London, Milan and TARGET
Selling restrictions and provisions relating to certification
61 Non-US Selling Restrictions: Investors are bound by the selling restrictions of the
relevant jurisdiction(s) in which the Securities are to be sold as set out in the Base Prospectus.
In addition to those described in the Base Prospectus, no action has been made or will be taken by the Issuer that would permit a public offering of the Securities or possession or distribution of any offering material in relation to the Securities in any jurisdiction (save for Italy) where action for that purpose is required. Each purchaser or distributor of the Securities represents and agrees that it will not purchase, offer, sell, re-sell or deliver the Securities or, have in its possession or distribute, the Base Prospectus, any other offering material or any Final Terms, in any jurisdiction except in compliance with the applicable laws and regulations of such jurisdiction and in a manner that will not impose any obligation on the Issuer or Manager (as the case may be) and the Determination Agent.
62 Applicable TEFRA exemption: N/A
63 Other: N/A
General
64 Business Day Convention: Following
65 Relevant Clearing System[s]: Euroclear Clearstream Monte Titoli
66 If syndicated, names [and addresses] of Managers [and underwriting commitments]:
N/A
67 Relevant securities codes: ISIN: GB00B3SVY583 Common Code: 063855014
68 Modifications to the Master Subscription Agreement and/or Master Agency Agreement:
69 Additional Conditions and/or modification to the Conditions of the Securities:
N/A
N/A
Part B Other Information
1 | Listing and Admission to Trading | |
(i) | Listing | Application will be made by the Issuer (or on its behalf) to list the Securities on the Italian Stock Exchange. |
No assurance can be given that such application, if made, will be granted. | ||
(ii) | Admission to trading: | Application will be made by the Issuer (or on its behalf ) for the Securities to be admitted to |
trading on the electronic Securitised Derivatives Market (‘‘SeDeX’‘) organised and managed by Borsa Italiana S.p.A..
No assurance can be given that such application, if made, will be granted.
(iii) Estimate of total expenses related to admission to trading:
Up to a maximum of EUR 875 upfront
2 RATINGS
Ratings: The Securities have not been individually rated.
3 Notification
The Financial Services Authority of the United Kingdom has provided the Commissione Nazionale per le Società e la Borsa (CONSOB) with a certificate of approval attesting that the Base Prospectus has been drawn up in accordance with the Prospectus Directive.
4 Interests of Natural and Legal Persons involved in the [Issue/Offer]
Save as discussed in ‘‘Purchase and Sale’‘, so far as the Issuer is aware, no person involved in the offer of the Securities has an interest material to the offer.
5 Reasons for the Offer, Estimated Net Proceeds and Total Expenses
(i) Reasons for the offer: General funding
(ii) Estimated net proceeds: Up to EUR 338,250
(iii) Estimated total expenses: Up to a maximum of EUR 875 upfront
6 Fixed Rate Securities Only - Yield
Indication of yield: N/A
7 Floating Rate Securities Only - Historic Interest Rates
N/A
8 Performance Of Reference Asset(S) Or Other Variable, Explanation Of Effect On Value Of Investment And Associated Risks And Other Information Concerning The Reference Asset(S) And/Or Other Underlying
Details of the historic performance of the Reference Asset can be obtained from various internationally recognised published or electronically available news sources, for example, Reuters: .FTMIB.
Investors should note that historical performance should not be taken as an indication of future performance of the Reference Asset. The Issuer makes no representation whatsoever, whether expressly or impliedly, as to the future performance of the Reference Asset. The Issuer does not intend to provide post-issuance information.
Investors should form their own views on the merits of an investment related to the Reference Asset based on their own investigation thereof.
The description below represents a summary only of some of the features of the investment product described in this Final Terms. It does not purport to be an exhaustive description.
The product is issued as Certificates in EUR and aims to provide a positive return if the price of the Reference Asset falls over the investment period and conversely, a negative return if the price of the Reference Asset rises over the investment period. This inverse exposure to the Reference Asset (typically referred to as ''short exposure'') may be amplified (leveraged) in certain circumstances. The return on the Certificates factors in a net financing cost which may be positive or negative and which is comprised of any proceeds that the Issuer receives through its hedge for the Certificates, less (i) any associated borrowing costs, and (ii) a variable charge for arranging the Certificates. This net financing cost will accrue daily and be added to, or deducted from (as the case may be) the amount payable to investors on redemption of the Certificates.
The Certificates will cancel automatically if the value of the Reference Asset rises to, or above, a specified level.
The amount payable on settlement of the Certificates will be determined by reference to the value of the Reference Asset, the outstanding financed amount and the Parity and any dividends that have been paid shares that have comprised the Index during the life of the Certificates.
The maximum loss for an investor in respect of each Certificate is limited to the purchase price of the Certificate.
9 Performance Of Rate[S] Of Exchange And Explanation Of Effect On Value Of Investment
N/A
10 Operational Information
Any clearing system(s) other than [For US Warrants: DTC,] Euroclear Bank S.A./N.V. and Clearstream Banking Société Anonyme (together with their addresses) and the relevant identification number(s):
Monte Titoli
Delivery: Delivery against payment
Names and addresses of additional Paying Agents(s) (if any):
Intended to be held in a manner which would allow Eurosystem eligibility:
N/A No
11 Offer Information
N/A
12 Form Of Notice From Beneficial Owner To []
NOTICE FROM THE BENEFICIAL OWNER TO HIS/HER FINANCIAL INTERMEDIARY
(to be completed by the beneficial owner of the Securities for the valid renouncement of Automatic
Exercise of the Securities) BARCLAYS BANK PLC
Index Linked Mini Short Certificates ISIN: GB00B3SVY583
(the ‘‘Securities’‘)
To: []
Fax Number: [] Email: []
(the ‘‘Financial Intermediary’‘)
We, the undersigned beneficial owner(s) of Securities, hereby communicate that we are renouncing the right to Automatic Exercise of the Securities specified below, in accordance with the Conditions of the Securities.
The undersigned understands that if this notice is not duly completed and delivered in order to enable the Securityholder to renounce automatic redemption of the Securities prior to the Renouncement Notice Cut-Off Time, or if this notice is determined to be incomplete or not in proper form [(in the determination of the Financial Intermediary)] it will be treated as null and void.
ISIN Code/Series number of the Securities: GB00B3SVY583 Number of Italian Securities the subject of this notice: [ ]
Name of beneficial owner of the Securities
Signature
Schedule
Definitions relating to the determination of the Exercise Cash Settlement Amount
Financing Level Currency
Current Financing Level
Initial Financing Level
EUR
In respect of the Issue Date, the Initial Financing Level.
In respect of any subsequent calendar day, an amount determined by the Issuer in good faith and in a reasonable manner equal to:
(CFLR + FCC – DIVC)
Where:
‘‘CFLR’‘ is the Current Financing Level in respect of the immediately preceding Reset Date.
‘‘FCC’‘ is the Funding Cost currently in respect of such calendar day.
‘’DIVC’’ is the Applicable Dividend Amount in respect of such calendar day.
The Issuer shall make reasonable efforts to publish the applicable Current Financing Level on xxx.xxxxxxxx.xxx
The Current Financing Level will be published and forwarded to the relevant Exchanges, Clearing Systems and data vendors prior to 13:00 CET on the Borsa Italiana Business Day preceding the day when the Current Financing Level becomes effective.
Where:
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
EUR 21735.70
Reset Dates Each calendar day. The first Reset Date shall be the Issue Date.
Funding Cost In respect of any calendar day, an amount, determined by the Issuer in its discretion (exercised in good faith and in a reasonable manner) equal to: FRC × CFLR × d/365
Where:
‘‘FRC’‘ is the Funding Rate in respect of such calendar day.
‘‘CFLR’‘ is the Current Financing Level in respect of the immediately preceding Reset Date.
‘‘d’‘ is the number of calendar days from, but excluding, the immediately preceding Reset Date to, and including, such calendar day.
For the avoidance of doubt, it should be noted that the Funding Cost may, in respect of any day, be a negative amount.
Funding Rate In respect of any calendar day, a rate equal to:
(RR - CM)
Where:
‘‘CM’‘ is the Current Margin.
‘‘RR ‘‘ is the Rate in respect of the immediately preceding Borsa Italiana Business Day.
Where:
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
Current Margin (CM) 3.00%
Rate
In respect of any Calculation Period, the Rate shall be determined by the Issuer by reference to the one month LIBOR rate, for deposits in the Reference Asset Currency in the inter-bank market, as published on Bloomberg page: BBAM. If such rate is unavailable, the Determination Agent may determine the Rate in good faith by reference to such other source as it deems appropriate.
Calculation Period Each period from, and excluding, one Reset Date (or, in the case of the first period the Issue Date) to, and including, the immediately following Reset Date.
Applicable Dividend Amount
In respect of any calendar day, an amount in the Financing Level Currency determined by the Issuer in good faith and in a reasonable manner with reference to any cash dividends per share that has comprised the Index during the Calculation Period declared by the issuer of such share to holders of record of such share, where the date on which the shares have commenced trading ex- dividend occurs during the relevant Calculation Period. The Applicable Dividend Amount shall be determined as that gross amount which has been declared and paid by the issuer of the share in respect of such share (disregarding any deductions, withholdings or other amounts required by any applicable law or regulation, including any applicable taxes, duties or charges of any kind whatsoever) multiplied by the Dividend Participation.
Dividend Participation 100%
Definitions relating to the Specified Early Cancellation Event
Current Stop Loss Level
In respect of the Issue Date, the Initial Stop Loss Level.
In respect of any subsequent calendar day, the Current Stop Loss Level shall be determined and reset on each calendar day by the Issuer, acting in its discretion (exercised in good faith and in a reasonable manner), and shall be set equal to:
(CFLC - SLPC)
Where:
‘‘CFLC’‘ is the Current Financing Level in respect of such calendar day.
‘‘SLPC’‘ is the Current Stop Loss Premium in respect of such calendar day. The Current Stop Loss Level shall be rounded in accordance with the Stop Loss Rounding Convention.
The Issuer shall make reasonable efforts to publish the applicable Current Stop Loss Level on xxx.xxxxxxxx.xxx.
The Current Stop Loss Level will be published and forwarded to the relevant Exchanges, Clearing Systems, data vendors prior to 13:00 CET Italian time on the Borsa Italiana Business Day preceding the day when the Current Stop Loss Level becomes effective.
Where;
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
Initial Stop Loss Level EUR 21300.00, determined as an amount in the Reference Asset Currency equal to the Initial Financing Level minus the Initial Stop Loss Premium, rounded in accordance with the Stop Loss Rounding Convention
Current Stop Loss Premium
Initial Stop Loss Premium
Stop Loss Rounding Convention
In respect of the Issue Date, the Initial Stop Loss Premium.
In respect of any subsequent calendar day, the Current Stop Loss Premium shall be an amount in the Financing Level Currency determined by the Issuer in good faith and in a reasonable manner equal to:
2.00% × CFLC
Where:
‘‘CFLC’‘ is the Current Financing Level in respect of such calendar day.
2.00% × FLI
Where:
‘‘FLI’‘ is the Initial Financing Level Downwards to the nearest EUR 1.00
Index Disclaimer
The Securities are not in any way sponsored, endorsed, sold or promoted by FTSE International Limited (‘‘FTSE‘‘), the London Stock Exchange Plc (the ‘‘Exchange‘‘), The Financial Times Limited (‘‘FT‘‘) or Borsa Italiana SpA (‘‘Borsa Italiana‘‘) (collectively the ‘‘Licensor Parties‘‘) and none of the Licensor Parties make any warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE MIB Index (the ‘‘Index‘‘) and/or the figure at which the said Index stands at any particular time on any particular day or otherwise. The Index is calculated by FTSE with the assistance of Borsa Italiana. None of the Licensor Parties shall be liable (whether in negligence or otherwise) to any person for any error in the Index and none of the Licensor Parties shall be under any obligation to advise any person of any error therein.
‘‘FTSE®‘‘ is a trade mark of the Exchange and the FT, ‘‘MIB®‘‘ is a trade mark of Borsa Italiana and both are used by FTSE under licence.
ITALIAN TAXATION
The following is a summary of current Italian law and practice relating to the taxation of the Certificates (the ‘‘Securities’‘). The statements herein regarding taxation are based on the laws in force in Italy as at the date of these Final Terms and are subject to any changes in law occurring after such date, which changes could be made on a retroactive basis. The following summary does not purport to be a comprehensive description of all the tax considerations which may be relevant to a decision to subscribe for, purchase, own or dispose of the Securities and does not purport to deal with the tax consequences applicable to all categories of investors, some of which (such as dealers in securities or commodities) may be subject to special rules.
Prospective purchasers of the Securities are advised to consult their own tax advisers concerning the overall tax consequences of their ownership of the Securities.
Italian taxation of Securities
Pursuant to Article 67 of Presidential Decree No. 917 of 22 December 1986 and Legislative Decree No. 461 of 21 November 1997, as subsequently amended, where the Italian resident Certificateholder is (i) an individual not engaged in an entrepreneurial activity to which the Certificates are connected, (ii) a non-commercial partnership pursuant to article 5 of TUIR (with the exception of general partnership, limited partnership and similar entities), (iii) a non- commercial private or public institution, or (iv) an investor exempt from Italian corporate income taxation, capital gains accrued under the sale or the exercise of the Certificates are subject to a 12.5% substitute tax (imposta sostitutiva). The recipient may opt for three different taxation criteria:
(1) Under the tax declaration regime (regime della dichiarazione), which is the default regime for taxation of capital gains realised by Italian resident individuals not engaged in an entrepreneurial activity to which the Certificates are connected, the imposta sostitutiva on capital gains will be chargeable, on a yearly cumulative basis, on all capital gains, net of any offsettable capital loss, realised by the Italian resident individual holding the Certificates not in connection with an entrepreneurial activity pursuant to all sales or redemptions of the Certificates carried out during any given tax year. Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity must indicate the overall capital gains realised in any tax year, net of any relevant incurred capital loss, in the annual tax return and pay imposta sostitutiva on such gains together with any balance income tax due for such year. Capital losses in excess of capital gains may be carried forward against capital gains realised in any of the four succeeding tax years.
(2) As an alternative to the tax declaration regime, Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity may elect to pay the imposta sostitutiva separately on capital gains realised on each sale or redemption of the Certificates (the ‘‘risparmio amministrato’‘ regime provided for by Article 6 of the Legislative Decree No. 461 of 21 November 1997, as a subsequently amended, the ‘‘Decree No. 461’‘). Such separate taxation of capital gains is allowed subject to (i) the Certificates being deposited with Italian banks, SIMs or certain authorised financial intermediaries and (ii) an express valid election for the risparmio amministrato regime being punctually made in writing by the relevant Certificateholder. The depository is responsible for accounting for imposta sostitutiva in respect of capital gains realised on each sale or redemption of the Certificates (as well as in respect of capital gains realised upon the revocation of its mandate), net of any incurred capital loss, and is required to pay the relevant amount to the Italian tax authorities on behalf of the taxpayer, deducting a corresponding amount from the proceeds to be credited to the Certificateholder or using funds provided by the Certificateholder for this purpose. Under the
risparmio amministrato regime, where a sale or redemption of the Certificates results in a capital loss, such loss may be deducted from capital gains subsequently realised, within the same securities management, in the same tax year or in the following tax years up to the fourth. Under the risparmio amministrato regime, the Certificateholder is not required to declare the capital gains in the annual tax return.
(3) Any capital gains realised or accrued by Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity who have entrusted the management of their financial assets, including the Certificates, to an authorised intermediary and have validly opted for the so-called ‘‘risparmio gestito’‘ regime (regime provided for by Article 7 of the Decree No. 461) will be included in the computation of the annual increase in value of the managed assets accrued, even if not realised, at year end, subject to a 12.5 per cent. substitute tax, to be paid by the managing authorised intermediary. Under this risparmio gestito regime, any depreciation of the managed assets accrued at year end may be carried forward against increase in value of the managed assets accrued in any of the four succeeding tax years. Under the risparmio gestito regime, the Certificateholder is not required to declare the capital gains realised in the annual tax return.
Where an Italian resident Securityholder is a company or similar commercial entity, or the Italian permanent establishment of a foreign commercial entity to which the Securities are effectively connected, capital gains arising from the Securities will not be subject to imposta sostitutiva, but must be included in the relevant Securityholder's income tax return and are therefore subject to Italian corporate tax (and, in certain circumstances, depending on the ‘‘status’‘ of the Securityholder, also as a part of the net value of production for IRAP purposes).
Any capital gains realised by a Securityholder which is an open-ended or closed-ended investment fund (subject to the tax regime provide by Law No. 77 of 23 March 1983) or a SICAV will be included in the result of the relevant portfolio accrued at the end of the tax period, to be subject to the 12.50 per cent. ad hoc substitute tax (the Collective Investment Fund Tax). As of 1 July 2011, the Collective Investment Fund Tax will be repealed and substituted by a substitute tax of 12.5% levied on proceeds distributed by the Fund or the SICAV or received by certain categories of unitholders upon redemption or disposal of the units.
Any capital gains realised by a Securityholder which is an Italian pension fund (subject to the regime provided by article 17 of the Legislative Decree No. 252 of 5 December 2005) will be included in the result of the relevant portfolio accrued at the end of the tax period, to be subject to the 11 per cent. ad hoc substitute tax.
Capital gains realised by non-Italian resident Securityholders are not subject to Italian taxation provided that the Securities (i) are transferred on regulated markets, or (ii) if not transferred on regulated markets, are held outside Italy.
The provisions of the applicable tax treaties against double taxation entered into by Italy apply if more favourable and all relevant conditions are met.
Atypical securities
In accordance with a different interpretation of current tax law, it is possible that Certificates would be considered as 'atypical' securities pursuant to Article 8 of Law Decree No. 512 of 30 September 1983 as implemented by Law No. 649 of 25 November 1983. In this event, payments relating to Certificates may be subject to an Italian withholding tax, levied at the rate of 27 per cent.
The 27 per cent. withholding tax mentioned above does not apply to payments made to a non- Italian resident holder of the Certificate and to an Italian resident holder of the Certificate which is (i) a company or similar commercial entity (including the Italian permanent establishment of foreign entities), (ii) a commercial partnership, or (iii) a commercial private or public institution.
The withholding is levied by the Italian intermediary appointed by the Issuer, intervening in the collection of the relevant income or in the negotiation or repurchasing of the Securities.
Inheritance and gift taxes
Pursuant to Law Decree No. 262 of 3 October 2006, (Decree No. 262), converted into Law No. 286 of 24 November 2006, the transfers of any valuable asset (including shares, bonds or other securities) as a result of death or donation are taxed as follows:
(i) transfers in favour of spouses and direct descendants or direct ancestors are subject to an inheritance and gift tax applied at a rate of 4 per cent. on the value of the inheritance or the gift exceeding EUR 1,000,000;
(ii) transfers in favour of relatives to the fourth degree and relatives-in-law to the third degree, are subject to an inheritance and gift tax applied at a rate of 6 per cent. on the entire value of the inheritance or the gift. Transfers in favour of brothers/sisters are subject to the 6 per cent. inheritance and gift tax on the value of the inheritance or the gift exceeding EUR 100,000; and
(iii) any other transfer is, in principle, subject to an inheritance and gift tax applied at a rate of 8 per cent. on the entire value of the inheritance or the gift.
EU Savings Directive
Under EC Council Directive 2003/48/EC (‘‘EU Savings Directive’‘) on the taxation of savings income, Member States are required to provide to the tax authorities of another Member State, including Belgium from 1 January 2010, details of payments of interest (or similar income) paid by a person within its jurisdiction to an individual resident in that other Member State or to certain limited types of entities established in that other Member State. However, for a transitional period Luxembourg and Austria are instead required (unless during that period they elect otherwise) to operate a withholding system in relation to such payments (the ending of such transitional period being dependent upon the conclusion of certain other agreements relating to information exchange with certain other countries). A number of non-EU countries and territories including Switzerland have agreed to adopt similar measures (a withholding system in the case of Switzerland).
The European Commission has proposed certain amendments to the Directive, which may, if implemented, amend or broaden the scope of the requirements described above.
Implementation in Italy of the EU Savings Directive
Italy has implemented the EU Savings Directive through Legislative Decree No. 84 of 18 April 2005 (‘‘Decree No. 84’‘). Under Decree No. 84, subject to a number of important conditions being met, in the case of interest paid to individuals which qualify as beneficial owners of the interest payment and are resident for tax purposes in another Member State, Italian qualified paying agents shall not apply the withholding tax and shall report to the Italian Tax Authorities details of the relevant payments and personal information on the individual beneficial owner.
Such information is transmitted by the Italian Tax Authorities to the competent foreign tax authorities of the State of residence of the beneficial owner.
VERSION 2
Final Terms
BARCLAYS BANK PLC
(Incorporated with limited liability in England and Wales)
BARCLAYS CAPITAL (CAYMAN) LIMITED
(Incorporated with limited liability in the Cayman Islands)
GLOBAL STRUCTURED SECURITIES PROGRAMME
for the issue of Securities
BARCLAYS BANK PLC
2,255,000 DAX® (Total Return Index) Linked Mini Short Certificates ISIN code: GB00B41JZS60
under the Global Structured Securities Programme Issue Price: EUR 1.16 per Security
This document constitutes the final terms of the Securities (the ‘‘Final Terms’‘) described herein for the purposes of Article 5.4 of the Directive 2003/71/EC and is prepared in connection with the Global Structured Securities Programme established by Barclays Bank PLC (the ‘‘Bank’‘) and Barclays Capital (Cayman) Limited (‘‘BCCL’‘) and is supplemental to and should be read in conjunction with the Base Prospectus dated 6 August 2010 as supplemented, amended, updated and/or restated from time to time, which constitutes a base prospectus (the ‘‘Base Prospectus’‘) for the purpose of the Directive 2003/71/EC. Full information on the Issuer and the offer of the Securities is only available on the basis of the combination of these Final Terms and the Base Prospectus. The Base Prospectus is available for viewing during normal business hours at the registered office of the Issuer and the specified office of the Issue and Paying Agent and copies may be obtained from such office. Words and expressions defined in the Base Prospectus and not defined in this document shall bear the same meanings when used herein.
The Issuer accepts responsibility for the information contained in these Final Terms. To the best of its knowledge and belief (having taken all reasonable care to ensure that such is the case) the information contained in these Final Terms is in accordance with the facts and does not contain anything likely to affect the import of such information.
Investors should refer to the sections headed ‘‘Risk Factors’‘ in the Base Prospectus for a discussion of certain matters that should be considered when making a decision to invest in the Securities.
Barclays Capital
Final Terms dated 16 June 2011
The distribution of this document and the offer of the Securities in certain jurisdictions may be restricted by law. Persons into whose possession these Final Terms come are required by the Bank to inform themselves about and to observe any such restrictions. Details of selling restrictions for various jurisdictions are set out in ‘‘Purchase and Sale’‘ in the Base Prospectus. In particular, the Securities have not been, and will not be, registered under the US Securities Act of 1933, as amended, and are subject to US tax law requirements. Trading in the Securities has not been approved by the US Commodity Futures Trading Commission under the US Commodity Exchange Act of 1936, as amended. Subject to certain exceptions, the Securities may not at any time be offered, sold or delivered in the United States or to US persons, nor may any US persons at any time trade or maintain a position in such Securities.
Part A
Terms and Conditions of the Securities
The Securities shall have the following terms and conditions, which shall complete, modify and/or amend the Base Conditions and/or any applicable Relevant Annex(es) set out in the Base Prospectus dated 6 August 2010.
Parties
Issuer: Barclays Bank PLC
Guarantor: N/A
Manager: Barclays Bank PLC
Determination Agent: Barclays Bank PLC
Issue and Paying Agent: The Bank of New York Mellon
Stabilising Manager: N/A
Registrar: N/A
CREST Agent: N/A
Paying Agents: N/A
Transfer Agent: N/A
Exchange Agent: N/A
Additional Agents: N/A
THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT) AND THE SECURITIES COMPRISE BEARER SECURITIES THAT ARE SUBJECT TO US TAX LAW REQUIREMENTS. SUBJECT TO CERTAIN EXCEPTIONS, THE SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT (‘‘REGULATION S’‘)). THESE FINAL TERMS HAVE BEEN PREPARED BY THE ISSUER FOR USE IN CONNECTION WITH THE OFFER AND SALE OF THE SECURITIES OUTSIDE THE UNITED STATES TO NON-US PERSONS IN RELIANCE ON REGULATION S AND FOR LISTING OF THE SECURITIES ON THE RELEVANT STOCK EXCHANGE, IF ANY, AS STATED HEREIN. FOR A DESCRIPTION OF THESE AND CERTAIN FURTHER RESTRICTIONS ON OFFERS AND SALES OF THE SECURITIES AND DISTRIBUTION OF THESE FINAL TERMS AND THE BASE PROSPECTUS AND THE SUPPLEMENTAL PROSPECTUS SEE ‘‘PURCHASE AND SALE’‘ IN THE BASE PROSPECTUS.
1 (i) Series: GSC1203
(ii) Tranche: 1
2 Currency: Euro (‘‘EUR’‘) (the ‘‘Issue Currency’‘)
3 Number of Warrants or Exercisable Certificates being issued:
4 Calculation Amount per Security as at the Issue Date:
5 Form:
(i) Global/Definitive/ Uncertificated and dematerialised:
2,255,000 Securities
1 Certificate
Global Bearer Securities: Permanent Global Security
(ii) NGN Form: N/A
(iii) Held under the NSS: N/A
(iv) CGN Form: Applicable
(v) CDIs: N/A
6 Trade Date: 15 June 2011
7 Issue Date: 15 June 2011
8 Issue Price: EUR 1.16 per Security.
9 Relevant Stock Exchange[s]: Italian Stock Exchange
10 The following Relevant Annex(es) shall apply to the Securities (specify each applicable Relevant Annex):
Equity Linked Annex Italian Securities Annex
Provisions relating to interest (if any) payable on the Securities
11 Interest: N/A
12 Interest Amount: N/A
13 Interest Rates:
(i) Fixed Rate: N/A
(ii) Floating Rate: N/A
(iii) Variable Rate: N/A
(iv) Zero Coupon: N/A
14 Screen Rate Determination: N/A
(i) Reference Rate: N/A
(ii) Relevant Screen Page: N/A
15 ISDA Determination: N/A
16 Margin: N/A
17 Minimum/Maximum Interest Rate:
N/A
18 Interest Commencement Date: N/A
19 Interest Determination Date: N/A
20 Interest Calculation Periods: N/A
21 Interest Payment Dates: N/A
22 Day Count Fraction: N/A
23 Fall back provisions, rounding provisions, denominator and any other terms relating to the method of calculating interest, if different from those set out in the Base Conditions:
Provisions relating to Exercise
N/A
24 (i) Exercise Style: European Style
(ii) Multiple Exercise Securities N/A
25 Call/Put Securities: Other Exercise Securities
26 Units: The Securities must be exercised in Units. Each Unit consists of 1 Security.
27 Exercise Price: N/A
28 Exercise Date(s): The Final Valuation Date
29 Potential Exercise Business Dates: N/A
30 Exercise Period: N/A
31 Expiration Date: Exercise Date
32 (i) Automatic Exercise: Applicable
(ii) Renouncement Notice Cut-Off Date:
(iii) Renouncement Notice Cut-Off Time:
33 Minimum Number Exercise Requirement:
The Business Day immediately following the Exercise Date
10 a.m. Milan Time N/A
34 Maximum Daily Number: N/A
35 Nominal Call Event: N/A
(i) Nominal Call Threshold Amount: N/A
(ii) Nominal Call Threshold Percentage:
N/A
36 Settlement Method: Cash Settlement
37 Settlement Currency: EUR
38 Settlement Number: As defined in Condition 24 of the Base Conditions
39 Terms relating to Cash Settled Securities:
(i) Exercise Cash Settlement Amount:
(ii) Exercise Cash Settlement Date:
In respect of each Security, a cash amount determined by the Determination Agent as follows: Xxx (0, CFLV – UV) × Parity
Where:
‘‘Parity’‘ means in respect of each Security, 0.001.
‘‘UV’‘ is the Valuation Price on the Final Valuation Date.
‘‘CFLV’‘ is the Current Financing Level (as set out in the Schedule) in respect of the Final Valuation Date. ''Valuation Price'' means in respect of a Valuation
Date and any relevant Scheduled Trading Day, the
price of the Reference Asset at the Valuation Time on such day, as determined by the Determination Agent in good faith and in a reasonable manner.
‘‘Valuation Date’‘ and ‘‘Valuation Time’‘ has the meaning set out in Paragraph 47.
Further definitions are set out in the Schedule.
The 10th Business Day following the Exercise Date, scheduled to be 29 June 2016
(iii) Early Cash Settlement Amount: As defined in Condition 24 of the Base Conditions
(iv) Early Cancellation Date: As defined in Condition 24 of the Base Conditions
40 Specified Early Cancellation Event: Applicable.
If, at any time on any day from, and including, the Issue Date, to and including the Final Valuation Date the Issuer determines in good faith and in a reasonable manner that the market price of the Reference Asset is equal to, or higher than, the prevailing Current Stop Loss Level (as further defined in the Schedule) (a ‘‘Stop Loss Termination Event’‘ and the date of such occurrence, the ‘‘Stop Loss Termination Event Date’‘), the Issuer shall notify the Securityholder of the occurrence of the Stop Loss Termination Event and the Specified Early Cash Settlement Amount as soon as calculated and shall cancel all of the Securities (in whole only) on
the Specified Early Cash Cancellation Date.
(i) Automatic early cancellation:
Applicable with respect to a Stop Loss Termination Event.
(ii) Cash Settled Securities: Applicable
(a) Specified Early Cash Settlement Amount:
(b) Specified Early Cash Cancellation Date:
In respect of each Security, a cash amount determined by the Determination Agent in good faith and in a reasonable manner on the relevant Valuation Date as follows:
Max (0, CFLT – SLTRP) × Parity
Where:
‘‘Parity’‘ means in respect of each Security, 0.001. ‘‘SLTRP’‘ is the Stop Loss Termination Reference Price.
‘‘CFLT’‘ is the Current Financing Level (as set out in the Schedule) in respect of the relevant Valuation Date.
‘‘Stop Loss Termination Reference Price’‘ means, in respect of the relevant Valuation Date the highest price of the Reference Asset on the Exchange on the Stop Loss Termination Event Date.
Further definitions are set out in the Schedule.
5th Business Day following the relevant Valuation Date
(iii) Physically Delivered Securities: N/A
(iv) Specified Early Cancellation Notice Period:
The Issuer shall promptly notify the Securityholder of the occurrence of a Specified Early Redemption Event.
41 Call Option: Applicable. The Issuer may cancel all Securities in whole in accordance with the below.
(i) Cash Settled Securities:
(a) Issuer Call Optional Cash Settlement Amount:
In respect of each Security, a cash amount determined by the Determination Agent on the relevant Valuation Date as follows:
Max (0, CFLc – Uc) × Parity
Where;
‘‘Call Option Notice Date’‘ means the Business Day on which the Issuer gives notice to the Securityholders.
‘‘Call Option Valuation Date’‘ means the first Scheduled Trading Day falling 6 months following the Call Option Notice Date.
‘‘Parity’‘ means in respect of each Security, 0.001.
‘‘Uc’‘ is the Valuation Price on the Call Option Valuation Date.
‘‘CFLc’‘ is the Current Financing Level (as set out in the Schedule) in respect of the Call Option Valuation Date.
''Valuation Price'' means in respect of a Valuation Date and any relevant Scheduled Trading Day, the price of the Reference Asset at the Valuation Time on such day, as determined by the Determination Agent in good faith and in a reasonable manner.
(ii) Optional Cash Settlement Date:
(iii) Issuer Option Exercise Period:
5th Business Day following the Call Option Valuation Date
On any Business Day, from and including the first Business Day falling 1 year following the Issue Date to but excluding the Business Day falling 6 months preceding the Final Valuation Date
(iv) Issuer Notice Period: Not less than 6 months notice
42 Early Exercise Trigger Event: N/A
43 Terms relating to Physically Delivered Securities:
N/A
44 Multiplier: See the definition of Parity above
45 Additional Disruption Events in addition to those specified in Condition 24 of the Base Conditions and any applicable Relevant Annex:
(i) Affected Jurisdiction Hedging Disruption:
(ii) Affected Jurisdiction Increased Cost of Hedging:
N/A N/A
(iii) Affected Jurisdiction: N/A
(iv) Other Additional Disruption N/A
Events:
(v) The following shall not constitute Additional Disruption Events:
N/A
46 Share Linked Securities: N/A
47 Index Linked Securities: Applicable
Index | DAX® (Total Return Index) |
Reference Asset Currency | EUR |
Reuters Code (for identification purposes only) | .GDAXI |
Bloomberg Ticker (for identification purposes only) | DAX |
Index Sponsor | Deutsche Börse |
(i) Index/Indices (each a ‘‘Reference Asset’‘)
(ii) Future Price Valuation: N/A
(iii) Exchange-traded Contract: N/A
(iv) Exchange(s):
(v) Related Exchange(s): All Exchanges
(vi) Exchange Rate: N/A
(vii) Weighting for each Reference Asset comprising the Basket of Reference Assets:
(viii) Index Level of each Reference Asset:
N/A
N/A
(ix) Valuation Date: (i) In respect of the determination of the Exercise Cash Settlement Amount, the date scheduled to be 15 June 2016 (the ‘‘Final Valuation Date’‘).
(ii) In respect of a Stop Loss Termination Event, the Valuation Date shall be, the Stop Loss Termination Event Date.
(iii) In respect of the determination of the
Issuer Call Optional Cash Settlement Amount, the Call Option Valuation Date.
(x) Averaging: N/A
(xi) Valuation Time: As per the Equity Linked Annex
(xii) Additional Disruption Event in respect of Index Linked Securities:
N/A
(xiii) FX Disruption Event: N/A
(xiv) Other adjustments: N/A
48 Inflation Linked Securities: N/A
49 FX Linked Securities: N/A
50 Credit Linked Securities: N/A
51 Commodity Linked Securities: N/A
52 Debt Components: N/A
53 Interest Rate Components: N/A
54 Additional terms and conditions relating to the Securities:
Additional provisions relating to Settlement
N/A
55 Minimum Settlement Amount N/A
Settlement in respect of APK Registered Securities, Dutch Securities, Italian Securities, Swedish Registered Securities, VPS Registered Securities or Spanish Securities:
56 Settlement in respect of Swedish Registered Securities:
57 Additional provisions relating to payment of Exercise Price:
58 Additional provisions relating to Taxes and Settlement Expenses:
Definitions
N/A
N/A N/A N/A
59 Definition of In-The-Money: As defined in Condition 24 of the Base Conditions
60 Additional Business Centre(s): London, Milan and TARGET
Selling restrictions and provisions relating to certification
61 Non-US Selling Restrictions: Investors are bound by the selling restrictions of the
relevant jurisdiction(s) in which the Securities are to be sold as set out in the Base Prospectus.
In addition to those described in the Base Prospectus, no action has been made or will be taken by the Issuer that would permit a public offering of the Securities or possession or distribution of any offering material in relation to the Securities in any jurisdiction (save for Italy) where action for that purpose is required. Each purchaser or distributor of the Securities represents and agrees that it will not purchase, offer, sell, re-sell or deliver the Securities or, have in its possession or distribute, the Base Prospectus, any other offering material or any Final Terms, in any jurisdiction except in compliance with the applicable laws and regulations of such jurisdiction and in a manner that will not impose any obligation on the Issuer or Manager (as the case may be) and the Determination Agent.
62 Applicable TEFRA exemption: N/A
63 Other: N/A
General
64 Business Day Convention: Following
65 Relevant Clearing System[s]: Euroclear Clearstream Monte Titoli
66 If syndicated, names [and addresses] of Managers [and underwriting commitments]:
N/A
67 Relevant securities codes: ISIN: GB00B41JZS60 Common Code: 063855952
68 Modifications to the Master Subscription Agreement and/or Master Agency Agreement:
69 Additional Conditions and/or modification to the Conditions of the Securities:
N/A
N/A
Part B Other Information
1 | Listing and Admission to Trading | |
(i) | Listing | Application will be made by the Issuer (or on its behalf) to list the Securities on the Italian Stock Exchange. |
No assurance can be given that such application, if made, will be granted. | ||
(ii) | Admission to trading: | Application will be made by the Issuer (or on its behalf ) for the Securities to be admitted to |
trading on the electronic Securitised Derivatives Market (‘‘SeDeX’‘) organised and managed by Borsa Italiana S.p.A..
No assurance can be given that such application, if made, will be granted.
(iii) Estimate of total expenses related to admission to trading:
Up to a maximum of EUR 875 upfront
2 RATINGS
Ratings: The Securities have not been individually rated.
3 Notification
The Financial Services Authority of the United Kingdom has provided the Commissione Nazionale per le Società e la Borsa (CONSOB) with a certificate of approval attesting that the Base Prospectus has been drawn up in accordance with the Prospectus Directive.
4 Interests of Natural and Legal Persons involved in the [Issue/Offer]
Save as discussed in ‘‘Purchase and Sale’‘, so far as the Issuer is aware, no person involved in the offer of the Securities has an interest material to the offer.
5 Reasons for the Offer, Estimated Net Proceeds and Total Expenses
(i) Reasons for the offer: General funding
(ii) Estimated net proceeds: Up to EUR 2,615,800
(iii) Estimated total expenses: Up to a maximum of EUR 875 upfront
6 Fixed Rate Securities Only - Yield
Indication of yield: N/A
7 Floating Rate Securities Only - Historic Interest Rates
N/A
8 Performance Of Reference Asset(S) Or Other Variable, Explanation Of Effect On Value Of Investment And Associated Risks And Other Information Concerning The Reference Asset(S) And/Or Other Underlying
Details of the historic performance of the Reference Asset can be obtained from various internationally recognised published or electronically available news sources, for example, Reuters: .GDAXI.
Investors should note that historical performance should not be taken as an indication of future performance of the Reference Asset. The Issuer makes no representation whatsoever, whether expressly or impliedly, as to the future performance of the Reference Asset. The Issuer does not intend to provide post-issuance information.
Investors should form their own views on the merits of an investment related to the Reference Asset based on their own investigation thereof.
The description below represents a summary only of some of the features of the investment product described in this Final Terms. It does not purport to be an exhaustive description.
The product is issued as Certificates in EUR and aims to provide a positive return if the price of the Reference Asset falls over the investment period and conversely, a negative return if the price of the Reference Asset rises over the investment period. This inverse exposure to the Reference Asset (typically referred to as ''short exposure'') may be amplified (leveraged) in certain circumstances. The return on the Certificates factors in a net financing cost which may be positive or negative and which is comprised of any proceeds that the Issuer receives through its hedge for the Certificates, less (i) any associated borrowing costs, and (ii) a variable charge for arranging the Certificates. This net financing cost will accrue daily and be added to, or deducted from (as the case may be) the amount payable to investors on redemption of the Certificates.
The Certificates will cancel automatically if the value of the Reference Asset rises to, or above, a specified level.
The amount payable on settlement of the Certificates will be determined by reference to the value of the Reference Asset, the outstanding financed amount and the Parity.
The maximum loss for an investor in respect of each Certificate is limited to the purchase price of the Certificate.
9 Performance Of Rate[S] Of Exchange And Explanation Of Effect On Value Of Investment
N/A
10 Operational Information
Any clearing system(s) other than [For US Warrants: DTC,] Euroclear Bank S.A./N.V. and Clearstream Banking Société Anonyme (together with their addresses) and the relevant identification number(s):
Monte Titoli
Delivery: Delivery against payment
Names and addresses of additional Paying Agents(s) (if any):
Intended to be held in a manner which would allow Eurosystem eligibility:
N/A No
11 Offer Information
N/A
12 Form Of Notice From Beneficial Owner To []
NOTICE FROM THE BENEFICIAL OWNER TO HIS/HER FINANCIAL INTERMEDIARY
(to be completed by the beneficial owner of the Securities for the valid renouncement of Automatic
Exercise of the Securities) BARCLAYS BANK PLC
Index Linked Mini Short Certificates ISIN: GB00B41JZS60
(the ‘‘Securities’‘)
To: []
Fax Number: [] Email: []
(the ‘‘Financial Intermediary’‘)
We, the undersigned beneficial owner(s) of Securities, hereby communicate that we are renouncing the right to Automatic Exercise of the Securities specified below, in accordance with the Conditions of the Securities.
The undersigned understands that if this notice is not duly completed and delivered in order to enable the Securityholder to renounce automatic redemption of the Securities prior to the Renouncement Notice Cut-Off Time, or if this notice is determined to be incomplete or not in proper form [(in the determination of the Financial Intermediary)] it will be treated as null and void.
ISIN Code/Series number of the Securities: GB00B41JZS60 Number of Italian Securities the subject of this notice: [ ]
Name of beneficial owner of the Securities
Signature
Schedule
Definitions relating to the determination of the Exercise Cash Settlement Amount
Financing Level Currency
Current Financing Level
Initial Financing Level
EUR
In respect of the Issue Date, the Initial Financing Level.
In respect of any subsequent calendar day, an amount determined by the Issuer in good faith and in a reasonable manner equal to:
(CFLR + FCC)
Where:
‘‘CFLR’‘ is the Current Financing Level in respect of the immediately preceding Reset Date.
‘‘FCC’‘ is the Funding Cost currently in respect of such calendar day.
The Issuer shall make reasonable efforts to publish the applicable Current Financing Level on xxx.xxxxxxxx.xxx
The Current Financing Level will be published and forwarded to the relevant Exchanges, Clearing Systems and data vendors prior to 13:00 CET on the Borsa Italiana Business Day preceding the day when the Current Financing Level becomes effective.
Where:
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
EUR 8224.38
Reset Dates Each calendar day. The first Reset Date shall be the Issue Date.
Funding Cost In respect of any calendar day, an amount, determined by the Issuer in its discretion (exercised in good faith and in a reasonable manner) equal to: FRC × CFLR × d/365
Where:
‘‘FRC’‘ is the Funding Rate in respect of such calendar day.
‘‘CFLR’‘ is the Current Financing Level in respect of the immediately preceding Reset Date.
‘‘d’‘ is the number of calendar days from, but excluding, the immediately preceding Reset Date to, and including, such calendar day.
For the avoidance of doubt, it should be noted that the Funding Cost may, in respect of any day, be a negative amount.
Funding Rate In respect of any calendar day, a rate equal to:
(RR - CM)
Where:
‘‘CM’‘ is the Current Margin.
‘‘RR ‘‘ is the Rate in respect of the immediately preceding Borsa Italiana Business Day.
Where:
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
Current Margin (CM) 3.00%
Rate
In respect of any Calculation Period, the Rate shall be determined by the Issuer by reference to the one month LIBOR rate, for deposits in the Reference Asset Currency in the inter-bank market, as published on Bloomberg page: BBAM. If such rate is unavailable, the Determination Agent may determine the Rate in good faith by reference to such other source as it deems appropriate.
Calculation Period Each period from, and excluding, one Reset Date (or, in the case of the first period the Issue Date) to, and including, the immediately following Reset Date.
Definitions relating to the Specified Early Cancellation Event
Current Stop Loss Level
In respect of the Issue Date, the Initial Stop Loss Level.
In respect of any subsequent calendar day, the Current Stop Loss Level shall be determined and reset on each calendar day by the Issuer, acting in its discretion (exercised in good faith and in a reasonable manner), and shall be set equal to:
(CFLC - SLPC)
Where:
‘‘CFLC’‘ is the Current Financing Level in respect of such calendar day.
‘‘SLPC’‘ is the Current Stop Loss Premium in respect of such calendar day. The Current Stop Loss Level shall be rounded in accordance with the Stop Loss Rounding Convention.
The Issuer shall make reasonable efforts to publish the applicable Current Stop Loss Level on xxx.xxxxxxxx.xxx.
The Current Stop Loss Level will be published and forwarded to the relevant Exchanges, Clearing Systems, data vendors prior to 13:00 CET Italian time on the Borsa Italiana Business Day preceding the day when the Current Stop Loss Level becomes effective.
Where;
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
Initial Stop Loss Level EUR 8050.00, determined as an amount in the Reference Asset Currency equal to the Initial Financing Level minus the Initial Stop Loss Premium, rounded in accordance with the Stop Loss Rounding Convention
Current Stop Loss Premium
Initial Stop Loss Premium
Stop Loss Rounding Convention
In respect of the Issue Date, the Initial Stop Loss Premium.
In respect of any subsequent calendar day, the Current Stop Loss Premium shall be an amount in the Financing Level Currency determined by the Issuer in good faith and in a reasonable manner equal to:
2.00% × CFLC
Where:
‘‘CFLC’‘ is the Current Financing Level in respect of such calendar day.
2.00% × FLI
Where:
‘‘FLI’‘ is the Initial Financing Level Downwards to the nearest EUR 10.00
Index Disclaimer
The DAX® was developed and is real-time calculated and published by Wiener Börse AG. The full name of the Index and its abbreviation are protected by copyright law as trademarks. The DAX® index description, rules and composition are available online on xxx.xxxxxxxxxxxx.xx - the index portal of Wiener Börse AG. The Issuer and Wiener Börse AG do not accept any liability for the accuracy and completeness of the information published on the web site. A non- exclusive authorisation to use the DAX® in conjunction with financial products by Issuer was granted upon the conclusion of a license agreement with Wiener Börse AG.
ITALIAN TAXATION
The following is a summary of current Italian law and practice relating to the taxation of the Certificates (the ‘‘Securities’‘). The statements herein regarding taxation are based on the laws in force in Italy as at the date of these Final Terms and are subject to any changes in law occurring after such date, which changes could be made on a retroactive basis. The following summary does not purport to be a comprehensive description of all the tax considerations which may be relevant to a decision to subscribe for, purchase, own or dispose of the Securities and does not purport to deal with the tax consequences applicable to all categories of investors, some of which (such as dealers in securities or commodities) may be subject to special rules.
Prospective purchasers of the Securities are advised to consult their own tax advisers concerning the overall tax consequences of their ownership of the Securities.
Italian taxation of Securities
Pursuant to Article 67 of Presidential Decree No. 917 of 22 December 1986 and Legislative Decree No. 461 of 21 November 1997, as subsequently amended, where the Italian resident Certificateholder is (i) an individual not engaged in an entrepreneurial activity to which the Certificates are connected, (ii) a non-commercial partnership pursuant to article 5 of TUIR (with the exception of general partnership, limited partnership and similar entities), (iii) a non- commercial private or public institution, or (iv) an investor exempt from Italian corporate income taxation, capital gains accrued under the sale or the exercise of the Certificates are subject to a 12.5% substitute tax (imposta sostitutiva). The recipient may opt for three different taxation criteria:
(1) Under the tax declaration regime (regime della dichiarazione), which is the default regime for taxation of capital gains realised by Italian resident individuals not engaged in an entrepreneurial activity to which the Certificates are connected, the imposta sostitutiva on capital gains will be chargeable, on a yearly cumulative basis, on all capital gains, net of any offsettable capital loss, realised by the Italian resident individual holding the Certificates not in connection with an entrepreneurial activity pursuant to all sales or redemptions of the Certificates carried out during any given tax year. Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity must indicate the overall capital gains realised in any tax year, net of any relevant incurred capital loss, in the annual tax return and pay imposta sostitutiva on such gains together with any balance income tax due for such year. Capital losses in excess of capital gains may be carried forward against capital gains realised in any of the four succeeding tax years.
(2) As an alternative to the tax declaration regime, Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity may elect to pay the imposta sostitutiva separately on capital gains realised on each sale or redemption of the Certificates (the ‘‘risparmio amministrato’‘ regime provided for by Article 6 of the Legislative Decree No. 461 of 21 November 1997, as a subsequently amended, the ‘‘Decree No. 461’‘). Such separate taxation of capital gains is allowed subject to (i) the Certificates being deposited with Italian banks, SIMs or certain authorised financial intermediaries and (ii) an express valid election for the risparmio amministrato regime being punctually made in writing by the relevant Certificateholder. The depository is responsible for accounting for imposta sostitutiva in respect of capital gains realised on each sale or redemption of the Certificates (as well as in respect of capital gains realised upon the revocation of its mandate), net of any incurred capital loss, and is required to pay the relevant amount to the Italian tax authorities on behalf of the taxpayer, deducting a corresponding amount from the proceeds to be credited to the Certificateholder or using funds provided by the Certificateholder for this purpose. Under the
risparmio amministrato regime, where a sale or redemption of the Certificates results in a capital loss, such loss may be deducted from capital gains subsequently realised, within the same securities management, in the same tax year or in the following tax years up to the fourth. Under the risparmio amministrato regime, the Certificateholder is not required to declare the capital gains in the annual tax return.
(3) Any capital gains realised or accrued by Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity who have entrusted the management of their financial assets, including the Certificates, to an authorised intermediary and have validly opted for the so-called ‘‘risparmio gestito’‘ regime (regime provided for by Article 7 of the Decree No. 461) will be included in the computation of the annual increase in value of the managed assets accrued, even if not realised, at year end, subject to a 12.5 per cent. substitute tax, to be paid by the managing authorised intermediary. Under this risparmio gestito regime, any depreciation of the managed assets accrued at year end may be carried forward against increase in value of the managed assets accrued in any of the four succeeding tax years. Under the risparmio gestito regime, the Certificateholder is not required to declare the capital gains realised in the annual tax return.
Where an Italian resident Securityholder is a company or similar commercial entity, or the Italian permanent establishment of a foreign commercial entity to which the Securities are effectively connected, capital gains arising from the Securities will not be subject to imposta sostitutiva, but must be included in the relevant Securityholder's income tax return and are therefore subject to Italian corporate tax (and, in certain circumstances, depending on the ‘‘status’‘ of the Securityholder, also as a part of the net value of production for IRAP purposes).
Any capital gains realised by a Securityholder which is an open-ended or closed-ended investment fund (subject to the tax regime provide by Law No. 77 of 23 March 1983) or a SICAV will be included in the result of the relevant portfolio accrued at the end of the tax period, to be subject to the 12.50 per cent. ad hoc substitute tax (the Collective Investment Fund Tax). As of 1 July 2011, the Collective Investment Fund Tax will be repealed and substituted by a substitute tax of 12.5% levied on proceeds distributed by the Fund or the SICAV or received by certain categories of unitholders upon redemption or disposal of the units.
Any capital gains realised by a Securityholder which is an Italian pension fund (subject to the regime provided by article 17 of the Legislative Decree No. 252 of 5 December 2005) will be included in the result of the relevant portfolio accrued at the end of the tax period, to be subject to the 11 per cent. ad hoc substitute tax.
Capital gains realised by non-Italian resident Securityholders are not subject to Italian taxation provided that the Securities (i) are transferred on regulated markets, or (ii) if not transferred on regulated markets, are held outside Italy.
The provisions of the applicable tax treaties against double taxation entered into by Italy apply if more favourable and all relevant conditions are met.
Atypical securities
In accordance with a different interpretation of current tax law, it is possible that Certificates would be considered as 'atypical' securities pursuant to Article 8 of Law Decree No. 512 of 30 September 1983 as implemented by Law No. 649 of 25 November 1983. In this event, payments relating to Certificates may be subject to an Italian withholding tax, levied at the rate of 27 per cent.
The 27 per cent. withholding tax mentioned above does not apply to payments made to a non- Italian resident holder of the Certificate and to an Italian resident holder of the Certificate which is (i) a company or similar commercial entity (including the Italian permanent establishment of foreign entities), (ii) a commercial partnership, or (iii) a commercial private or public institution.
The withholding is levied by the Italian intermediary appointed by the Issuer, intervening in the collection of the relevant income or in the negotiation or repurchasing of the Securities.
Inheritance and gift taxes
Pursuant to Law Decree No. 262 of 3 October 2006, (Decree No. 262), converted into Law No. 286 of 24 November 2006, the transfers of any valuable asset (including shares, bonds or other securities) as a result of death or donation are taxed as follows:
(i) transfers in favour of spouses and direct descendants or direct ancestors are subject to an inheritance and gift tax applied at a rate of 4 per cent. on the value of the inheritance or the gift exceeding EUR 1,000,000;
(ii) transfers in favour of relatives to the fourth degree and relatives-in-law to the third degree, are subject to an inheritance and gift tax applied at a rate of 6 per cent. on the entire value of the inheritance or the gift. Transfers in favour of brothers/sisters are subject to the 6 per cent. inheritance and gift tax on the value of the inheritance or the gift exceeding EUR 100,000; and
(iii) any other transfer is, in principle, subject to an inheritance and gift tax applied at a rate of 8 per cent. on the entire value of the inheritance or the gift.
EU Savings Directive
Under EC Council Directive 2003/48/EC (‘‘EU Savings Directive’‘) on the taxation of savings income, Member States are required to provide to the tax authorities of another Member State, including Belgium from 1 January 2010, details of payments of interest (or similar income) paid by a person within its jurisdiction to an individual resident in that other Member State or to certain limited types of entities established in that other Member State. However, for a transitional period Luxembourg and Austria are instead required (unless during that period they elect otherwise) to operate a withholding system in relation to such payments (the ending of such transitional period being dependent upon the conclusion of certain other agreements relating to information exchange with certain other countries). A number of non-EU countries and territories including Switzerland have agreed to adopt similar measures (a withholding system in the case of Switzerland).
The European Commission has proposed certain amendments to the Directive, which may, if implemented, amend or broaden the scope of the requirements described above.
Implementation in Italy of the EU Savings Directive
Italy has implemented the EU Savings Directive through Legislative Decree No. 84 of 18 April 2005 (‘‘Decree No. 84’‘). Under Decree No. 84, subject to a number of important conditions being met, in the case of interest paid to individuals which qualify as beneficial owners of the interest payment and are resident for tax purposes in another Member State, Italian qualified paying agents shall not apply the withholding tax and shall report to the Italian Tax Authorities details of the relevant payments and personal information on the individual beneficial owner.
Such information is transmitted by the Italian Tax Authorities to the competent foreign tax authorities of the State of residence of the beneficial owner.
VERSION 2
Final Terms
BARCLAYS BANK PLC
(Incorporated with limited liability in England and Wales)
BARCLAYS CAPITAL (CAYMAN) LIMITED
(Incorporated with limited liability in the Cayman Islands)
GLOBAL STRUCTURED SECURITIES PROGRAMME
for the issue of Securities
BARCLAYS BANK PLC
2,255,000 DAX® (Total Return Index) Linked Mini Short Certificates ISIN code: GB00B44VVS16
under the Global Structured Securities Programme Issue Price: EUR 0.98 per Security
This document constitutes the final terms of the Securities (the ‘‘Final Terms’‘) described herein for the purposes of Article 5.4 of the Directive 2003/71/EC and is prepared in connection with the Global Structured Securities Programme established by Barclays Bank PLC (the ‘‘Bank’‘) and Barclays Capital (Cayman) Limited (‘‘BCCL’‘) and is supplemental to and should be read in conjunction with the Base Prospectus dated 6 August 2010 as supplemented, amended, updated and/or restated from time to time, which constitutes a base prospectus (the ‘‘Base Prospectus’‘) for the purpose of the Directive 2003/71/EC. Full information on the Issuer and the offer of the Securities is only available on the basis of the combination of these Final Terms and the Base Prospectus. The Base Prospectus is available for viewing during normal business hours at the registered office of the Issuer and the specified office of the Issue and Paying Agent and copies may be obtained from such office. Words and expressions defined in the Base Prospectus and not defined in this document shall bear the same meanings when used herein.
The Issuer accepts responsibility for the information contained in these Final Terms. To the best of its knowledge and belief (having taken all reasonable care to ensure that such is the case) the information contained in these Final Terms is in accordance with the facts and does not contain anything likely to affect the import of such information.
Investors should refer to the sections headed ‘‘Risk Factors’‘ in the Base Prospectus for a discussion of certain matters that should be considered when making a decision to invest in the Securities.
Barclays Capital
Final Terms dated 16 June 2011
The distribution of this document and the offer of the Securities in certain jurisdictions may be restricted by law. Persons into whose possession these Final Terms come are required by the Bank to inform themselves about and to observe any such restrictions. Details of selling restrictions for various jurisdictions are set out in ‘‘Purchase and Sale’‘ in the Base Prospectus. In particular, the Securities have not been, and will not be, registered under the US Securities Act of 1933, as amended, and are subject to US tax law requirements. Trading in the Securities has not been approved by the US Commodity Futures Trading Commission under the US Commodity Exchange Act of 1936, as amended. Subject to certain exceptions, the Securities may not at any time be offered, sold or delivered in the United States or to US persons, nor may any US persons at any time trade or maintain a position in such Securities.
Part A
Terms and Conditions of the Securities
The Securities shall have the following terms and conditions, which shall complete, modify and/or amend the Base Conditions and/or any applicable Relevant Annex(es) set out in the Base Prospectus dated 6 August 2010.
Parties
Issuer: Barclays Bank PLC
Guarantor: N/A
Manager: Barclays Bank PLC
Determination Agent: Barclays Bank PLC
Issue and Paying Agent: The Bank of New York Mellon
Stabilising Manager: N/A
Registrar: N/A
CREST Agent: N/A
Paying Agents: N/A
Transfer Agent: N/A
Exchange Agent: N/A
Additional Agents: N/A
THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT) AND THE SECURITIES COMPRISE BEARER SECURITIES THAT ARE SUBJECT TO US TAX LAW REQUIREMENTS. SUBJECT TO CERTAIN EXCEPTIONS, THE SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT (‘‘REGULATION S’‘)). THESE FINAL TERMS HAVE BEEN PREPARED BY THE ISSUER FOR USE IN CONNECTION WITH THE OFFER AND SALE OF THE SECURITIES OUTSIDE THE UNITED STATES TO NON-US PERSONS IN RELIANCE ON REGULATION S AND FOR LISTING OF THE SECURITIES ON THE RELEVANT STOCK EXCHANGE, IF ANY, AS STATED HEREIN. FOR A DESCRIPTION OF THESE AND CERTAIN FURTHER RESTRICTIONS ON OFFERS AND SALES OF THE SECURITIES AND DISTRIBUTION OF THESE FINAL TERMS AND THE BASE PROSPECTUS AND THE SUPPLEMENTAL PROSPECTUS SEE ‘‘PURCHASE AND SALE’‘ IN THE BASE PROSPECTUS.
1 (i) Series: GSC1204
(ii) Tranche: 1
2 Currency: Euro (‘‘EUR’‘) (the ‘‘Issue Currency’‘)
3 Number of Warrants or Exercisable Certificates being issued:
4 Calculation Amount per Security as at the Issue Date:
5 Form:
(i) Global/Definitive/ Uncertificated and dematerialised:
2,255,000 Securities
1 Certificate
Global Bearer Securities: Permanent Global Security
(ii) NGN Form: N/A
(iii) Held under the NSS: N/A
(iv) CGN Form: Applicable
(v) CDIs: N/A
6 Trade Date: 15 June 2011
7 Issue Date: 15 June 2011
8 Issue Price: EUR 0.98 per Security.
9 Relevant Stock Exchange[s]: Italian Stock Exchange
10 The following Relevant Annex(es) shall apply to the Securities (specify each applicable Relevant Annex):
Equity Linked Annex Italian Securities Annex
Provisions relating to interest (if any) payable on the Securities
11 Interest: N/A
12 Interest Amount: N/A
13 Interest Rates:
(i) Fixed Rate: N/A
(ii) Floating Rate: N/A
(iii) Variable Rate: N/A
(iv) Zero Coupon: N/A
14 Screen Rate Determination: N/A
(i) Reference Rate: N/A
(ii) Relevant Screen Page: N/A
15 ISDA Determination: N/A
16 Margin: N/A
17 Minimum/Maximum Interest Rate:
N/A
18 Interest Commencement Date: N/A
19 Interest Determination Date: N/A
20 Interest Calculation Periods: N/A
21 Interest Payment Dates: N/A
22 Day Count Fraction: N/A
23 Fall back provisions, rounding provisions, denominator and any other terms relating to the method of calculating interest, if different from those set out in the Base Conditions:
Provisions relating to Exercise
N/A
24 (i) Exercise Style: European Style
(ii) Multiple Exercise Securities N/A
25 Call/Put Securities: Other Exercise Securities
26 Units: The Securities must be exercised in Units. Each Unit consists of 1 Security.
27 Exercise Price: N/A
28 Exercise Date(s): The Final Valuation Date
29 Potential Exercise Business Dates: N/A
30 Exercise Period: N/A
31 Expiration Date: Exercise Date
32 (i) Automatic Exercise: Applicable
(ii) Renouncement Notice Cut-Off Date:
(iii) Renouncement Notice Cut-Off Time:
33 Minimum Number Exercise Requirement:
The Business Day immediately following the Exercise Date
10 a.m. Milan Time N/A
34 Maximum Daily Number: N/A
35 Nominal Call Event: N/A
(i) Nominal Call Threshold Amount: N/A
(ii) Nominal Call Threshold Percentage:
N/A
36 Settlement Method: Cash Settlement
37 Settlement Currency: EUR
38 Settlement Number: As defined in Condition 24 of the Base Conditions
39 Terms relating to Cash Settled Securities:
(i) Exercise Cash Settlement Amount:
(ii) Exercise Cash Settlement Date:
In respect of each Security, a cash amount determined by the Determination Agent as follows: Xxx (0, CFLV – UV) × Parity
Where:
‘‘Parity’‘ means in respect of each Security, 0.001.
‘‘UV’‘ is the Valuation Price on the Final Valuation Date.
‘‘CFLV’‘ is the Current Financing Level (as set out in the Schedule) in respect of the Final Valuation Date. ''Valuation Price'' means in respect of a Valuation
Date and any relevant Scheduled Trading Day, the
price of the Reference Asset at the Valuation Time on such day, as determined by the Determination Agent in good faith and in a reasonable manner.
‘‘Valuation Date’‘ and ‘‘Valuation Time’‘ has the meaning set out in Paragraph 47.
Further definitions are set out in the Schedule.
The 10th Business Day following the Exercise Date, scheduled to be 29 June 2016
(iii) Early Cash Settlement Amount: As defined in Condition 24 of the Base Conditions
(iv) Early Cancellation Date: As defined in Condition 24 of the Base Conditions
40 Specified Early Cancellation Event: Applicable.
If, at any time on any day from, and including, the Issue Date, to and including the Final Valuation Date the Issuer determines in good faith and in a reasonable manner that the market price of the Reference Asset is equal to, or higher than, the prevailing Current Stop Loss Level (as further defined in the Schedule) (a ‘‘Stop Loss Termination Event’‘ and the date of such occurrence, the ‘‘Stop Loss Termination Event Date’‘), the Issuer shall notify the Securityholder of the occurrence of the Stop Loss Termination Event and the Specified Early Cash Settlement Amount as soon as calculated and shall cancel all of the Securities (in whole only) on
the Specified Early Cash Cancellation Date.
(i) Automatic early cancellation:
Applicable with respect to a Stop Loss Termination Event.
(ii) Cash Settled Securities: Applicable
(a) Specified Early Cash Settlement Amount:
(b) Specified Early Cash Cancellation Date:
In respect of each Security, a cash amount determined by the Determination Agent in good faith and in a reasonable manner on the relevant Valuation Date as follows:
Max (0, CFLT – SLTRP) × Parity
Where:
‘‘Parity’‘ means in respect of each Security, 0.001. ‘‘SLTRP’‘ is the Stop Loss Termination Reference Price.
‘‘CFLT’‘ is the Current Financing Level (as set out in the Schedule) in respect of the relevant Valuation Date.
‘‘Stop Loss Termination Reference Price’‘ means, in respect of the relevant Valuation Date the highest price of the Reference Asset on the Exchange on the Stop Loss Termination Event Date.
Further definitions are set out in the Schedule.
5th Business Day following the relevant Valuation Date
(iii) Physically Delivered Securities: N/A
(iv) Specified Early Cancellation Notice Period:
The Issuer shall promptly notify the Securityholder of the occurrence of a Specified Early Redemption Event.
41 Call Option: Applicable. The Issuer may cancel all Securities in whole in accordance with the below.
(i) Cash Settled Securities:
(a) Issuer Call Optional Cash Settlement Amount:
In respect of each Security, a cash amount determined by the Determination Agent on the relevant Valuation Date as follows:
Max (0, CFLc – Uc) × Parity
Where;
‘‘Call Option Notice Date’‘ means the Business Day on which the Issuer gives notice to the Securityholders.
‘‘Call Option Valuation Date’‘ means the first Scheduled Trading Day falling 6 months following the Call Option Notice Date.
‘‘Parity’‘ means in respect of each Security, 0.001.
‘‘Uc’‘ is the Valuation Price on the Call Option Valuation Date.
‘‘CFLc’‘ is the Current Financing Level (as set out in the Schedule) in respect of the Call Option Valuation Date.
''Valuation Price'' means in respect of a Valuation Date and any relevant Scheduled Trading Day, the price of the Reference Asset at the Valuation Time on such day, as determined by the Determination Agent in good faith and in a reasonable manner.
(ii) Optional Cash Settlement Date:
(iii) Issuer Option Exercise Period:
5th Business Day following the Call Option Valuation Date
On any Business Day, from and including the first Business Day falling 1 year following the Issue Date to but excluding the Business Day falling 6 months preceding the Final Valuation Date
(iv) Issuer Notice Period: Not less than 6 months notice
42 Early Exercise Trigger Event: N/A
43 Terms relating to Physically Delivered Securities:
N/A
44 Multiplier: See the definition of Parity above
45 Additional Disruption Events in addition to those specified in Condition 24 of the Base Conditions and any applicable Relevant Annex:
(i) Affected Jurisdiction Hedging Disruption:
(ii) Affected Jurisdiction Increased Cost of Hedging:
N/A N/A
(iii) Affected Jurisdiction: N/A
(iv) Other Additional Disruption N/A
Events:
(v) The following shall not constitute Additional Disruption Events:
N/A
46 Share Linked Securities: N/A
47 Index Linked Securities: Applicable
Index | DAX® (Total Return Index) |
Reference Asset Currency | EUR |
Reuters Code (for identification purposes only) | .GDAXI |
Bloomberg Ticker (for identification purposes only) | DAX |
Index Sponsor | Deutsche Börse |
(i) Index/Indices (each a ‘‘Reference Asset’‘)
(ii) Future Price Valuation: N/A
(iii) Exchange-traded Contract: N/A
(iv) Exchange(s):
(v) Related Exchange(s): All Exchanges
(vi) Exchange Rate: N/A
(vii) Weighting for each Reference Asset comprising the Basket of Reference Assets:
(viii) Index Level of each Reference Asset:
N/A
N/A
(ix) Valuation Date: (i) In respect of the determination of the Exercise Cash Settlement Amount, the date scheduled to be 15 June 2016 (the ‘‘Final Valuation Date’‘).
(ii) In respect of a Stop Loss Termination Event, the Valuation Date shall be, the Stop Loss Termination Event Date.
(iii) In respect of the determination of the
Issuer Call Optional Cash Settlement Amount, the Call Option Valuation Date.
(x) Averaging: N/A
(xi) Valuation Time: As per the Equity Linked Annex
(xii) Additional Disruption Event in respect of Index Linked Securities:
N/A
(xiii) FX Disruption Event: N/A
(xiv) Other adjustments: N/A
48 Inflation Linked Securities: N/A
49 FX Linked Securities: N/A
50 Credit Linked Securities: N/A
51 Commodity Linked Securities: N/A
52 Debt Components: N/A
53 Interest Rate Components: N/A
54 Additional terms and conditions relating to the Securities:
Additional provisions relating to Settlement
N/A
55 Minimum Settlement Amount N/A
Settlement in respect of APK Registered Securities, Dutch Securities, Italian Securities, Swedish Registered Securities, VPS Registered Securities or Spanish Securities:
56 Settlement in respect of Swedish Registered Securities:
57 Additional provisions relating to payment of Exercise Price:
58 Additional provisions relating to Taxes and Settlement Expenses:
Definitions
N/A
N/A N/A N/A
59 Definition of In-The-Money: As defined in Condition 24 of the Base Conditions
60 Additional Business Centre(s): London, Milan and TARGET
Selling restrictions and provisions relating to certification
61 Non-US Selling Restrictions: Investors are bound by the selling restrictions of the
relevant jurisdiction(s) in which the Securities are to be sold as set out in the Base Prospectus.
In addition to those described in the Base Prospectus, no action has been made or will be taken by the Issuer that would permit a public offering of the Securities or possession or distribution of any offering material in relation to the Securities in any jurisdiction (save for Italy) where action for that purpose is required. Each purchaser or distributor of the Securities represents and agrees that it will not purchase, offer, sell, re-sell or deliver the Securities or, have in its possession or distribute, the Base Prospectus, any other offering material or any Final Terms, in any jurisdiction except in compliance with the applicable laws and regulations of such jurisdiction and in a manner that will not impose any obligation on the Issuer or Manager (as the case may be) and the Determination Agent.
62 Applicable TEFRA exemption: N/A
63 Other: N/A
General
64 Business Day Convention: Following
65 Relevant Clearing System[s]: Euroclear Clearstream Monte Titoli
66 If syndicated, names [and addresses] of Managers [and underwriting commitments]:
N/A
67 Relevant securities codes: ISIN: GB00B44VVS16 Common Code: 063855979
68 Modifications to the Master Subscription Agreement and/or Master Agency Agreement:
69 Additional Conditions and/or modification to the Conditions of the Securities:
N/A
N/A
Part B Other Information
1 | Listing and Admission to Trading | |
(i) | Listing | Application will be made by the Issuer (or on its behalf) to list the Securities on the Italian Stock Exchange. |
No assurance can be given that such application, if made, will be granted. | ||
(ii) | Admission to trading: | Application will be made by the Issuer (or on its behalf ) for the Securities to be admitted to |
trading on the electronic Securitised Derivatives Market (‘‘SeDeX’‘) organised and managed by Borsa Italiana S.p.A..
No assurance can be given that such application, if made, will be granted.
(iii) Estimate of total expenses related to admission to trading:
Up to a maximum of EUR 875 upfront
2 RATINGS
Ratings: The Securities have not been individually rated.
3 Notification
The Financial Services Authority of the United Kingdom has provided the Commissione Nazionale per le Società e la Borsa (CONSOB) with a certificate of approval attesting that the Base Prospectus has been drawn up in accordance with the Prospectus Directive.
4 Interests of Natural and Legal Persons involved in the [Issue/Offer]
Save as discussed in ‘‘Purchase and Sale’‘, so far as the Issuer is aware, no person involved in the offer of the Securities has an interest material to the offer.
5 Reasons for the Offer, Estimated Net Proceeds and Total Expenses
(i) Reasons for the offer: General funding
(ii) Estimated net proceeds: Up to EUR 2,209,900
(iii) Estimated total expenses: Up to a maximum of EUR 875 upfront
6 Fixed Rate Securities Only - Yield
Indication of yield: N/A
7 Floating Rate Securities Only - Historic Interest Rates
N/A
8 Performance Of Reference Asset(S) Or Other Variable, Explanation Of Effect On Value Of Investment And Associated Risks And Other Information Concerning The Reference Asset(S) And/Or Other Underlying
Details of the historic performance of the Reference Asset can be obtained from various internationally recognised published or electronically available news sources, for example, Reuters: .GDAXI.
Investors should note that historical performance should not be taken as an indication of future performance of the Reference Asset. The Issuer makes no representation whatsoever, whether expressly or impliedly, as to the future performance of the Reference Asset. The Issuer does not intend to provide post-issuance information.
Investors should form their own views on the merits of an investment related to the Reference Asset based on their own investigation thereof.
The description below represents a summary only of some of the features of the investment product described in this Final Terms. It does not purport to be an exhaustive description.
The product is issued as Certificates in EUR and aims to provide a positive return if the price of the Reference Asset falls over the investment period and conversely, a negative return if the price of the Reference Asset rises over the investment period. This inverse exposure to the Reference Asset (typically referred to as ''short exposure'') may be amplified (leveraged) in certain circumstances. The return on the Certificates factors in a net financing cost which may be positive or negative and which is comprised of any proceeds that the Issuer receives through its hedge for the Certificates, less (i) any associated borrowing costs, and (ii) a variable charge for arranging the Certificates. This net financing cost will accrue daily and be added to, or deducted from (as the case may be) the amount payable to investors on redemption of the Certificates.
The Certificates will cancel automatically if the value of the Reference Asset rises to, or above, a specified level.
The amount payable on settlement of the Certificates will be determined by reference to the value of the Reference Asset, the outstanding financed amount and the Parity.
The maximum loss for an investor in respect of each Certificate is limited to the purchase price of the Certificate.
9 Performance Of Rate[S] Of Exchange And Explanation Of Effect On Value Of Investment
N/A
10 Operational Information
Any clearing system(s) other than [For US Warrants: DTC,] Euroclear Bank S.A./N.V. and Clearstream Banking Société Anonyme (together with their addresses) and the relevant identification number(s):
Monte Titoli
Delivery: Delivery against payment
Names and addresses of additional Paying Agents(s) (if any):
Intended to be held in a manner which would allow Eurosystem eligibility:
N/A No
11 Offer Information
N/A
12 Form Of Notice From Beneficial Owner To []
NOTICE FROM THE BENEFICIAL OWNER TO HIS/HER FINANCIAL INTERMEDIARY
(to be completed by the beneficial owner of the Securities for the valid renouncement of Automatic
Exercise of the Securities) BARCLAYS BANK PLC
Index Linked Mini Short Certificates ISIN: GB00B44VVS16
(the ‘‘Securities’‘)
To: []
Fax Number: [] Email: []
(the ‘‘Financial Intermediary’‘)
We, the undersigned beneficial owner(s) of Securities, hereby communicate that we are renouncing the right to Automatic Exercise of the Securities specified below, in accordance with the Conditions of the Securities.
The undersigned understands that if this notice is not duly completed and delivered in order to enable the Securityholder to renounce automatic redemption of the Securities prior to the Renouncement Notice Cut-Off Time, or if this notice is determined to be incomplete or not in proper form [(in the determination of the Financial Intermediary)] it will be treated as null and void.
ISIN Code/Series number of the Securities: GB00B44VVS16 Number of Italian Securities the subject of this notice: [ ]
Name of beneficial owner of the Securities
Signature
Schedule
Definitions relating to the determination of the Exercise Cash Settlement Amount
Financing Level Currency
Current Financing Level
Initial Financing Level
EUR
In respect of the Issue Date, the Initial Financing Level.
In respect of any subsequent calendar day, an amount determined by the Issuer in good faith and in a reasonable manner equal to:
(CFLR + FCC)
Where:
‘‘CFLR’‘ is the Current Financing Level in respect of the immediately preceding Reset Date.
‘‘FCC’‘ is the Funding Cost currently in respect of such calendar day.
The Issuer shall make reasonable efforts to publish the applicable Current Financing Level on xxx.xxxxxxxx.xxx
The Current Financing Level will be published and forwarded to the relevant Exchanges, Clearing Systems and data vendors prior to 13:00 CET on the Borsa Italiana Business Day preceding the day when the Current Financing Level becomes effective.
Where:
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
EUR 8040.71
Reset Dates Each calendar day. The first Reset Date shall be the Issue Date.
Funding Cost In respect of any calendar day, an amount, determined by the Issuer in its discretion (exercised in good faith and in a reasonable manner) equal to: FRC × CFLR × d/365
Where:
‘‘FRC’‘ is the Funding Rate in respect of such calendar day.
‘‘CFLR’‘ is the Current Financing Level in respect of the immediately preceding Reset Date.
‘‘d’‘ is the number of calendar days from, but excluding, the immediately preceding Reset Date to, and including, such calendar day.
For the avoidance of doubt, it should be noted that the Funding Cost may, in respect of any day, be a negative amount.
Funding Rate In respect of any calendar day, a rate equal to:
(RR - CM)
Where:
‘‘CM’‘ is the Current Margin.
‘‘RR ‘‘ is the Rate in respect of the immediately preceding Borsa Italiana Business Day.
Where:
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
Current Margin (CM) 3.00%
Rate
In respect of any Calculation Period, the Rate shall be determined by the Issuer by reference to the one month LIBOR rate, for deposits in the Reference Asset Currency in the inter-bank market, as published on Bloomberg page: BBAM. If such rate is unavailable, the Determination Agent may determine the Rate in good faith by reference to such other source as it deems appropriate.
Calculation Period Each period from, and excluding, one Reset Date (or, in the case of the first period the Issue Date) to, and including, the immediately following Reset Date.
Definitions relating to the Specified Early Cancellation Event
Current Stop Loss Level
In respect of the Issue Date, the Initial Stop Loss Level.
In respect of any subsequent calendar day, the Current Stop Loss Level shall be determined and reset on each calendar day by the Issuer, acting in its discretion (exercised in good faith and in a reasonable manner), and shall be set equal to:
(CFLC - SLPC)
Where:
‘‘CFLC’‘ is the Current Financing Level in respect of such calendar day.
‘‘SLPC’‘ is the Current Stop Loss Premium in respect of such calendar day. The Current Stop Loss Level shall be rounded in accordance with the Stop Loss Rounding Convention.
The Issuer shall make reasonable efforts to publish the applicable Current Stop Loss Level on xxx.xxxxxxxx.xxx.
The Current Stop Loss Level will be published and forwarded to the relevant Exchanges, Clearing Systems, data vendors prior to 13:00 CET Italian time on the Borsa Italiana Business Day preceding the day when the Current Stop Loss Level becomes effective.
Where;
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
Initial Stop Loss Level EUR 7870.00, determined as an amount in the Reference Asset Currency equal to the Initial Financing Level minus the Initial Stop Loss Premium, rounded in accordance with the Stop Loss Rounding Convention
Current Stop Loss Premium
Initial Stop Loss Premium
Stop Loss Rounding Convention
In respect of the Issue Date, the Initial Stop Loss Premium.
In respect of any subsequent calendar day, the Current Stop Loss Premium shall be an amount in the Financing Level Currency determined by the Issuer in good faith and in a reasonable manner equal to:
2.00% × CFLC
Where:
‘‘CFLC’‘ is the Current Financing Level in respect of such calendar day.
2.00% × FLI
Where:
‘‘FLI’‘ is the Initial Financing Level Downwards to the nearest EUR 10.00
Index Disclaimer
The DAX® was developed and is real-time calculated and published by Wiener Börse AG. The full name of the Index and its abbreviation are protected by copyright law as trademarks. The DAX® index description, rules and composition are available online on xxx.xxxxxxxxxxxx.xx - the index portal of Wiener Börse AG. The Issuer and Wiener Börse AG do not accept any liability for the accuracy and completeness of the information published on the web site. A non- exclusive authorisation to use the DAX® in conjunction with financial products by Issuer was granted upon the conclusion of a license agreement with Wiener Börse AG.
ITALIAN TAXATION
The following is a summary of current Italian law and practice relating to the taxation of the Certificates (the ‘‘Securities’‘). The statements herein regarding taxation are based on the laws in force in Italy as at the date of these Final Terms and are subject to any changes in law occurring after such date, which changes could be made on a retroactive basis. The following summary does not purport to be a comprehensive description of all the tax considerations which may be relevant to a decision to subscribe for, purchase, own or dispose of the Securities and does not purport to deal with the tax consequences applicable to all categories of investors, some of which (such as dealers in securities or commodities) may be subject to special rules.
Prospective purchasers of the Securities are advised to consult their own tax advisers concerning the overall tax consequences of their ownership of the Securities.
Italian taxation of Securities
Pursuant to Article 67 of Presidential Decree No. 917 of 22 December 1986 and Legislative Decree No. 461 of 21 November 1997, as subsequently amended, where the Italian resident Certificateholder is (i) an individual not engaged in an entrepreneurial activity to which the Certificates are connected, (ii) a non-commercial partnership pursuant to article 5 of TUIR (with the exception of general partnership, limited partnership and similar entities), (iii) a non- commercial private or public institution, or (iv) an investor exempt from Italian corporate income taxation, capital gains accrued under the sale or the exercise of the Certificates are subject to a 12.5% substitute tax (imposta sostitutiva). The recipient may opt for three different taxation criteria:
(1) Under the tax declaration regime (regime della dichiarazione), which is the default regime for taxation of capital gains realised by Italian resident individuals not engaged in an entrepreneurial activity to which the Certificates are connected, the imposta sostitutiva on capital gains will be chargeable, on a yearly cumulative basis, on all capital gains, net of any offsettable capital loss, realised by the Italian resident individual holding the Certificates not in connection with an entrepreneurial activity pursuant to all sales or redemptions of the Certificates carried out during any given tax year. Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity must indicate the overall capital gains realised in any tax year, net of any relevant incurred capital loss, in the annual tax return and pay imposta sostitutiva on such gains together with any balance income tax due for such year. Capital losses in excess of capital gains may be carried forward against capital gains realised in any of the four succeeding tax years.
(2) As an alternative to the tax declaration regime, Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity may elect to pay the imposta sostitutiva separately on capital gains realised on each sale or redemption of the Certificates (the ‘‘risparmio amministrato’‘ regime provided for by Article 6 of the Legislative Decree No. 461 of 21 November 1997, as a subsequently amended, the ‘‘Decree No. 461’‘). Such separate taxation of capital gains is allowed subject to (i) the Certificates being deposited with Italian banks, SIMs or certain authorised financial intermediaries and (ii) an express valid election for the risparmio amministrato regime being punctually made in writing by the relevant Certificateholder. The depository is responsible for accounting for imposta sostitutiva in respect of capital gains realised on each sale or redemption of the Certificates (as well as in respect of capital gains realised upon the revocation of its mandate), net of any incurred capital loss, and is required to pay the relevant amount to the Italian tax authorities on behalf of the taxpayer, deducting a corresponding amount from the proceeds to be credited to the Certificateholder or using funds provided by the Certificateholder for this purpose. Under the
risparmio amministrato regime, where a sale or redemption of the Certificates results in a capital loss, such loss may be deducted from capital gains subsequently realised, within the same securities management, in the same tax year or in the following tax years up to the fourth. Under the risparmio amministrato regime, the Certificateholder is not required to declare the capital gains in the annual tax return.
(3) Any capital gains realised or accrued by Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity who have entrusted the management of their financial assets, including the Certificates, to an authorised intermediary and have validly opted for the so-called ‘‘risparmio gestito’‘ regime (regime provided for by Article 7 of the Decree No. 461) will be included in the computation of the annual increase in value of the managed assets accrued, even if not realised, at year end, subject to a 12.5 per cent. substitute tax, to be paid by the managing authorised intermediary. Under this risparmio gestito regime, any depreciation of the managed assets accrued at year end may be carried forward against increase in value of the managed assets accrued in any of the four succeeding tax years. Under the risparmio gestito regime, the Certificateholder is not required to declare the capital gains realised in the annual tax return.
Where an Italian resident Securityholder is a company or similar commercial entity, or the Italian permanent establishment of a foreign commercial entity to which the Securities are effectively connected, capital gains arising from the Securities will not be subject to imposta sostitutiva, but must be included in the relevant Securityholder's income tax return and are therefore subject to Italian corporate tax (and, in certain circumstances, depending on the ‘‘status’‘ of the Securityholder, also as a part of the net value of production for IRAP purposes).
Any capital gains realised by a Securityholder which is an open-ended or closed-ended investment fund (subject to the tax regime provide by Law No. 77 of 23 March 1983) or a SICAV will be included in the result of the relevant portfolio accrued at the end of the tax period, to be subject to the 12.50 per cent. ad hoc substitute tax (the Collective Investment Fund Tax). As of 1 July 2011, the Collective Investment Fund Tax will be repealed and substituted by a substitute tax of 12.5% levied on proceeds distributed by the Fund or the SICAV or received by certain categories of unitholders upon redemption or disposal of the units.
Any capital gains realised by a Securityholder which is an Italian pension fund (subject to the regime provided by article 17 of the Legislative Decree No. 252 of 5 December 2005) will be included in the result of the relevant portfolio accrued at the end of the tax period, to be subject to the 11 per cent. ad hoc substitute tax.
Capital gains realised by non-Italian resident Securityholders are not subject to Italian taxation provided that the Securities (i) are transferred on regulated markets, or (ii) if not transferred on regulated markets, are held outside Italy.
The provisions of the applicable tax treaties against double taxation entered into by Italy apply if more favourable and all relevant conditions are met.
Atypical securities
In accordance with a different interpretation of current tax law, it is possible that Certificates would be considered as 'atypical' securities pursuant to Article 8 of Law Decree No. 512 of 30 September 1983 as implemented by Law No. 649 of 25 November 1983. In this event, payments relating to Certificates may be subject to an Italian withholding tax, levied at the rate of 27 per cent.
The 27 per cent. withholding tax mentioned above does not apply to payments made to a non- Italian resident holder of the Certificate and to an Italian resident holder of the Certificate which is (i) a company or similar commercial entity (including the Italian permanent establishment of foreign entities), (ii) a commercial partnership, or (iii) a commercial private or public institution.
The withholding is levied by the Italian intermediary appointed by the Issuer, intervening in the collection of the relevant income or in the negotiation or repurchasing of the Securities.
Inheritance and gift taxes
Pursuant to Law Decree No. 262 of 3 October 2006, (Decree No. 262), converted into Law No. 286 of 24 November 2006, the transfers of any valuable asset (including shares, bonds or other securities) as a result of death or donation are taxed as follows:
(i) transfers in favour of spouses and direct descendants or direct ancestors are subject to an inheritance and gift tax applied at a rate of 4 per cent. on the value of the inheritance or the gift exceeding EUR 1,000,000;
(ii) transfers in favour of relatives to the fourth degree and relatives-in-law to the third degree, are subject to an inheritance and gift tax applied at a rate of 6 per cent. on the entire value of the inheritance or the gift. Transfers in favour of brothers/sisters are subject to the 6 per cent. inheritance and gift tax on the value of the inheritance or the gift exceeding EUR 100,000; and
(iii) any other transfer is, in principle, subject to an inheritance and gift tax applied at a rate of 8 per cent. on the entire value of the inheritance or the gift.
EU Savings Directive
Under EC Council Directive 2003/48/EC (‘‘EU Savings Directive’‘) on the taxation of savings income, Member States are required to provide to the tax authorities of another Member State, including Belgium from 1 January 2010, details of payments of interest (or similar income) paid by a person within its jurisdiction to an individual resident in that other Member State or to certain limited types of entities established in that other Member State. However, for a transitional period Luxembourg and Austria are instead required (unless during that period they elect otherwise) to operate a withholding system in relation to such payments (the ending of such transitional period being dependent upon the conclusion of certain other agreements relating to information exchange with certain other countries). A number of non-EU countries and territories including Switzerland have agreed to adopt similar measures (a withholding system in the case of Switzerland).
The European Commission has proposed certain amendments to the Directive, which may, if implemented, amend or broaden the scope of the requirements described above.
Implementation in Italy of the EU Savings Directive
Italy has implemented the EU Savings Directive through Legislative Decree No. 84 of 18 April 2005 (‘‘Decree No. 84’‘). Under Decree No. 84, subject to a number of important conditions being met, in the case of interest paid to individuals which qualify as beneficial owners of the interest payment and are resident for tax purposes in another Member State, Italian qualified paying agents shall not apply the withholding tax and shall report to the Italian Tax Authorities details of the relevant payments and personal information on the individual beneficial owner.
Such information is transmitted by the Italian Tax Authorities to the competent foreign tax authorities of the State of residence of the beneficial owner.
VERSION 2
Final Terms
BARCLAYS BANK PLC
(Incorporated with limited liability in England and Wales)
BARCLAYS CAPITAL (CAYMAN) LIMITED
(Incorporated with limited liability in the Cayman Islands)
GLOBAL STRUCTURED SECURITIES PROGRAMME
for the issue of Securities
BARCLAYS BANK PLC
2,255,000 DAX® (Total Return Index) Linked Mini Short Certificates ISIN code: GB00B4SV4T98
under the Global Structured Securities Programme Issue Price: EUR 0.88 per Security
This document constitutes the final terms of the Securities (the ‘‘Final Terms’‘) described herein for the purposes of Article 5.4 of the Directive 2003/71/EC and is prepared in connection with the Global Structured Securities Programme established by Barclays Bank PLC (the ‘‘Bank’‘) and Barclays Capital (Cayman) Limited (‘‘BCCL’‘) and is supplemental to and should be read in conjunction with the Base Prospectus dated 6 August 2010 as supplemented, amended, updated and/or restated from time to time, which constitutes a base prospectus (the ‘‘Base Prospectus’‘) for the purpose of the Directive 2003/71/EC. Full information on the Issuer and the offer of the Securities is only available on the basis of the combination of these Final Terms and the Base Prospectus. The Base Prospectus is available for viewing during normal business hours at the registered office of the Issuer and the specified office of the Issue and Paying Agent and copies may be obtained from such office. Words and expressions defined in the Base Prospectus and not defined in this document shall bear the same meanings when used herein.
The Issuer accepts responsibility for the information contained in these Final Terms. To the best of its knowledge and belief (having taken all reasonable care to ensure that such is the case) the information contained in these Final Terms is in accordance with the facts and does not contain anything likely to affect the import of such information.
Investors should refer to the sections headed ‘‘Risk Factors’‘ in the Base Prospectus for a discussion of certain matters that should be considered when making a decision to invest in the Securities.
Barclays Capital
Final Terms dated 16 June 2011
The distribution of this document and the offer of the Securities in certain jurisdictions may be restricted by law. Persons into whose possession these Final Terms come are required by the Bank to inform themselves about and to observe any such restrictions. Details of selling restrictions for various jurisdictions are set out in ‘‘Purchase and Sale’‘ in the Base Prospectus. In particular, the Securities have not been, and will not be, registered under the US Securities Act of 1933, as amended, and are subject to US tax law requirements. Trading in the Securities has not been approved by the US Commodity Futures Trading Commission under the US Commodity Exchange Act of 1936, as amended. Subject to certain exceptions, the Securities may not at any time be offered, sold or delivered in the United States or to US persons, nor may any US persons at any time trade or maintain a position in such Securities.
Part A
Terms and Conditions of the Securities
The Securities shall have the following terms and conditions, which shall complete, modify and/or amend the Base Conditions and/or any applicable Relevant Annex(es) set out in the Base Prospectus dated 6 August 2010.
Parties
Issuer: Barclays Bank PLC
Guarantor: N/A
Manager: Barclays Bank PLC
Determination Agent: Barclays Bank PLC
Issue and Paying Agent: The Bank of New York Mellon
Stabilising Manager: N/A
Registrar: N/A
CREST Agent: N/A
Paying Agents: N/A
Transfer Agent: N/A
Exchange Agent: N/A
Additional Agents: N/A
THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE SECURITIES ACT) AND THE SECURITIES COMPRISE BEARER SECURITIES THAT ARE SUBJECT TO US TAX LAW REQUIREMENTS. SUBJECT TO CERTAIN EXCEPTIONS, THE SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT (‘‘REGULATION S’‘)). THESE FINAL TERMS HAVE BEEN PREPARED BY THE ISSUER FOR USE IN CONNECTION WITH THE OFFER AND SALE OF THE SECURITIES OUTSIDE THE UNITED STATES TO NON-US PERSONS IN RELIANCE ON REGULATION S AND FOR LISTING OF THE SECURITIES ON THE RELEVANT STOCK EXCHANGE, IF ANY, AS STATED HEREIN. FOR A DESCRIPTION OF THESE AND CERTAIN FURTHER RESTRICTIONS ON OFFERS AND SALES OF THE SECURITIES AND DISTRIBUTION OF THESE FINAL TERMS AND THE BASE PROSPECTUS AND THE SUPPLEMENTAL PROSPECTUS SEE ‘‘PURCHASE AND SALE’‘ IN THE BASE PROSPECTUS.
1 (i) Series: GSC1205
(ii) Tranche: 1
2 Currency: Euro (‘‘EUR’‘) (the ‘‘Issue Currency’‘)
3 Number of Warrants or Exercisable Certificates being issued:
4 Calculation Amount per Security as at the Issue Date:
5 Form:
(i) Global/Definitive/ Uncertificated and dematerialised:
2,255,000 Securities
1 Certificate
Global Bearer Securities: Permanent Global Security
(ii) NGN Form: N/A
(iii) Held under the NSS: N/A
(iv) CGN Form: Applicable
(v) CDIs: N/A
6 Trade Date: 15 June 2011
7 Issue Date: 15 June 2011
8 Issue Price: EUR 0.88 per Security.
9 Relevant Stock Exchange[s]: Italian Stock Exchange
10 The following Relevant Annex(es) shall apply to the Securities (specify each applicable Relevant Annex):
Equity Linked Annex Italian Securities Annex
Provisions relating to interest (if any) payable on the Securities
11 Interest: N/A
12 Interest Amount: N/A
13 Interest Rates:
(i) Fixed Rate: N/A
(ii) Floating Rate: N/A
(iii) Variable Rate: N/A
(iv) Zero Coupon: N/A
14 Screen Rate Determination: N/A
(i) Reference Rate: N/A
(ii) Relevant Screen Page: N/A
15 ISDA Determination: N/A
16 Margin: N/A
17 Minimum/Maximum Interest Rate:
N/A
18 Interest Commencement Date: N/A
19 Interest Determination Date: N/A
20 Interest Calculation Periods: N/A
21 Interest Payment Dates: N/A
22 Day Count Fraction: N/A
23 Fall back provisions, rounding provisions, denominator and any other terms relating to the method of calculating interest, if different from those set out in the Base Conditions:
Provisions relating to Exercise
N/A
24 (i) Exercise Style: European Style
(ii) Multiple Exercise Securities N/A
25 Call/Put Securities: Other Exercise Securities
26 Units: The Securities must be exercised in Units. Each Unit consists of 1 Security.
27 Exercise Price: N/A
28 Exercise Date(s): The Final Valuation Date
29 Potential Exercise Business Dates: N/A
30 Exercise Period: N/A
31 Expiration Date: Exercise Date
32 (i) Automatic Exercise: Applicable
(ii) Renouncement Notice Cut-Off Date:
(iii) Renouncement Notice Cut-Off Time:
33 Minimum Number Exercise Requirement:
The Business Day immediately following the Exercise Date
10 a.m. Milan Time N/A
34 Maximum Daily Number: N/A
35 Nominal Call Event: N/A
(i) Nominal Call Threshold Amount: N/A
(ii) Nominal Call Threshold Percentage:
N/A
36 Settlement Method: Cash Settlement
37 Settlement Currency: EUR
38 Settlement Number: As defined in Condition 24 of the Base Conditions
39 Terms relating to Cash Settled Securities:
(i) Exercise Cash Settlement Amount:
(ii) Exercise Cash Settlement Date:
In respect of each Security, a cash amount determined by the Determination Agent as follows: Xxx (0, CFLV – UV) × Parity
Where:
‘‘Parity’‘ means in respect of each Security, 0.001.
‘‘UV’‘ is the Valuation Price on the Final Valuation Date.
‘‘CFLV’‘ is the Current Financing Level (as set out in the Schedule) in respect of the Final Valuation Date. ''Valuation Price'' means in respect of a Valuation
Date and any relevant Scheduled Trading Day, the
price of the Reference Asset at the Valuation Time on such day, as determined by the Determination Agent in good faith and in a reasonable manner.
‘‘Valuation Date’‘ and ‘‘Valuation Time’‘ has the meaning set out in Paragraph 47.
Further definitions are set out in the Schedule.
The 10th Business Day following the Exercise Date, scheduled to be 29 June 2016
(iii) Early Cash Settlement Amount: As defined in Condition 24 of the Base Conditions
(iv) Early Cancellation Date: As defined in Condition 24 of the Base Conditions
40 Specified Early Cancellation Event: Applicable.
If, at any time on any day from, and including, the Issue Date, to and including the Final Valuation Date the Issuer determines in good faith and in a reasonable manner that the market price of the Reference Asset is equal to, or higher than, the prevailing Current Stop Loss Level (as further defined in the Schedule) (a ‘‘Stop Loss Termination Event’‘ and the date of such occurrence, the ‘‘Stop Loss Termination Event Date’‘), the Issuer shall notify the Securityholder of the occurrence of the Stop Loss Termination Event and the Specified Early Cash Settlement Amount as soon as calculated and shall cancel all of the Securities (in whole only) on
the Specified Early Cash Cancellation Date.
(i) Automatic early cancellation:
Applicable with respect to a Stop Loss Termination Event.
(ii) Cash Settled Securities: Applicable
(a) Specified Early Cash Settlement Amount:
(b) Specified Early Cash Cancellation Date:
In respect of each Security, a cash amount determined by the Determination Agent in good faith and in a reasonable manner on the relevant Valuation Date as follows:
Max (0, CFLT – SLTRP) × Parity
Where:
‘‘Parity’‘ means in respect of each Security, 0.001. ‘‘SLTRP’‘ is the Stop Loss Termination Reference Price.
‘‘CFLT’‘ is the Current Financing Level (as set out in the Schedule) in respect of the relevant Valuation Date.
‘‘Stop Loss Termination Reference Price’‘ means, in respect of the relevant Valuation Date the highest price of the Reference Asset on the Exchange on the Stop Loss Termination Event Date.
Further definitions are set out in the Schedule.
5th Business Day following the relevant Valuation Date
(iii) Physically Delivered Securities: N/A
(iv) Specified Early Cancellation Notice Period:
The Issuer shall promptly notify the Securityholder of the occurrence of a Specified Early Redemption Event.
41 Call Option: Applicable. The Issuer may cancel all Securities in whole in accordance with the below.
(i) Cash Settled Securities:
(a) Issuer Call Optional Cash Settlement Amount:
In respect of each Security, a cash amount determined by the Determination Agent on the relevant Valuation Date as follows:
Max (0, CFLc – Uc) × Parity
Where;
‘‘Call Option Notice Date’‘ means the Business Day on which the Issuer gives notice to the Securityholders.
‘‘Call Option Valuation Date’‘ means the first Scheduled Trading Day falling 6 months following the Call Option Notice Date.
‘‘Parity’‘ means in respect of each Security, 0.001.
‘‘Uc’‘ is the Valuation Price on the Call Option Valuation Date.
‘‘CFLc’‘ is the Current Financing Level (as set out in the Schedule) in respect of the Call Option Valuation Date.
''Valuation Price'' means in respect of a Valuation Date and any relevant Scheduled Trading Day, the price of the Reference Asset at the Valuation Time on such day, as determined by the Determination Agent in good faith and in a reasonable manner.
(ii) Optional Cash Settlement Date:
(iii) Issuer Option Exercise Period:
5th Business Day following the Call Option Valuation Date
On any Business Day, from and including the first Business Day falling 1 year following the Issue Date to but excluding the Business Day falling 6 months preceding the Final Valuation Date
(iv) Issuer Notice Period: Not less than 6 months notice
42 Early Exercise Trigger Event: N/A
43 Terms relating to Physically Delivered Securities:
N/A
44 Multiplier: See the definition of Parity above
45 Additional Disruption Events in addition to those specified in Condition 24 of the Base Conditions and any applicable Relevant Annex:
(i) Affected Jurisdiction Hedging Disruption:
(ii) Affected Jurisdiction Increased Cost of Hedging:
N/A N/A
(iii) Affected Jurisdiction: N/A
(iv) Other Additional Disruption N/A
Events:
(v) The following shall not constitute Additional Disruption Events:
N/A
46 Share Linked Securities: N/A
47 Index Linked Securities: Applicable
Index | DAX® (Total Return Index) |
Reference Asset Currency | EUR |
Reuters Code (for identification purposes only) | .GDAXI |
Bloomberg Ticker (for identification purposes only) | DAX |
Index Sponsor | Deutsche Börse |
(i) Index/Indices (each a ‘‘Reference Asset’‘)
(ii) Future Price Valuation: N/A
(iii) Exchange-traded Contract: N/A
(iv) Exchange(s):
(v) Related Exchange(s): All Exchanges
(vi) Exchange Rate: N/A
(vii) Weighting for each Reference Asset comprising the Basket of Reference Assets:
(viii) Index Level of each Reference Asset:
N/A
N/A
(ix) Valuation Date: (i) In respect of the determination of the Exercise Cash Settlement Amount, the date scheduled to be 15 June 2016 (the ‘‘Final Valuation Date’‘).
(ii) In respect of a Stop Loss Termination Event, the Valuation Date shall be, the Stop Loss Termination Event Date.
(iii) In respect of the determination of the
Issuer Call Optional Cash Settlement Amount, the Call Option Valuation Date.
(x) Averaging: N/A
(xi) Valuation Time: As per the Equity Linked Annex
(xii) Additional Disruption Event in respect of Index Linked Securities:
N/A
(xiii) FX Disruption Event: N/A
(xiv) Other adjustments: N/A
48 Inflation Linked Securities: N/A
49 FX Linked Securities: N/A
50 Credit Linked Securities: N/A
51 Commodity Linked Securities: N/A
52 Debt Components: N/A
53 Interest Rate Components: N/A
54 Additional terms and conditions relating to the Securities:
Additional provisions relating to Settlement
N/A
55 Minimum Settlement Amount N/A
Settlement in respect of APK Registered Securities, Dutch Securities, Italian Securities, Swedish Registered Securities, VPS Registered Securities or Spanish Securities:
56 Settlement in respect of Swedish Registered Securities:
57 Additional provisions relating to payment of Exercise Price:
58 Additional provisions relating to Taxes and Settlement Expenses:
Definitions
N/A
N/A N/A N/A
59 Definition of In-The-Money: As defined in Condition 24 of the Base Conditions
60 Additional Business Centre(s): London, Milan and TARGET
Selling restrictions and provisions relating to certification
61 Non-US Selling Restrictions: Investors are bound by the selling restrictions of the
relevant jurisdiction(s) in which the Securities are to be sold as set out in the Base Prospectus.
In addition to those described in the Base Prospectus, no action has been made or will be taken by the Issuer that would permit a public offering of the Securities or possession or distribution of any offering material in relation to the Securities in any jurisdiction (save for Italy) where action for that purpose is required. Each purchaser or distributor of the Securities represents and agrees that it will not purchase, offer, sell, re-sell or deliver the Securities or, have in its possession or distribute, the Base Prospectus, any other offering material or any Final Terms, in any jurisdiction except in compliance with the applicable laws and regulations of such jurisdiction and in a manner that will not impose any obligation on the Issuer or Manager (as the case may be) and the Determination Agent.
62 Applicable TEFRA exemption: N/A
63 Other: N/A
General
64 Business Day Convention: Following
65 Relevant Clearing System[s]: Euroclear Clearstream Monte Titoli
66 If syndicated, names [and addresses] of Managers [and underwriting commitments]:
N/A
67 Relevant securities codes: ISIN: GB00B4SV4T98 Common Code: 063856126
68 Modifications to the Master Subscription Agreement and/or Master Agency Agreement:
69 Additional Conditions and/or modification to the Conditions of the Securities:
N/A
N/A
Part B Other Information
1 | Listing and Admission to Trading | |
(i) | Listing | Application will be made by the Issuer (or on its behalf) to list the Securities on the Italian Stock Exchange. |
No assurance can be given that such application, if made, will be granted. | ||
(ii) | Admission to trading: | Application will be made by the Issuer (or on its behalf ) for the Securities to be admitted to |
trading on the electronic Securitised Derivatives Market (‘‘SeDeX’‘) organised and managed by Borsa Italiana S.p.A..
No assurance can be given that such application, if made, will be granted.
(iii) Estimate of total expenses related to admission to trading:
Up to a maximum of EUR 875 upfront
2 RATINGS
Ratings: The Securities have not been individually rated.
3 Notification
The Financial Services Authority of the United Kingdom has provided the Commissione Nazionale per le Società e la Borsa (CONSOB) with a certificate of approval attesting that the Base Prospectus has been drawn up in accordance with the Prospectus Directive.
4 Interests of Natural and Legal Persons involved in the [Issue/Offer]
Save as discussed in ‘‘Purchase and Sale’‘, so far as the Issuer is aware, no person involved in the offer of the Securities has an interest material to the offer.
5 Reasons for the Offer, Estimated Net Proceeds and Total Expenses
(i) Reasons for the offer: General funding
(ii) Estimated net proceeds: Up to EUR 1,984,400
(iii) Estimated total expenses: Up to a maximum of EUR 875 upfront
6 Fixed Rate Securities Only - Yield
Indication of yield: N/A
7 Floating Rate Securities Only - Historic Interest Rates
N/A
8 Performance Of Reference Asset(S) Or Other Variable, Explanation Of Effect On Value Of Investment And Associated Risks And Other Information Concerning The Reference Asset(S) And/Or Other Underlying
Details of the historic performance of the Reference Asset can be obtained from various internationally recognised published or electronically available news sources, for example, Reuters: .GDAXI.
Investors should note that historical performance should not be taken as an indication of future performance of the Reference Asset. The Issuer makes no representation whatsoever, whether expressly or impliedly, as to the future performance of the Reference Asset. The Issuer does not intend to provide post-issuance information.
Investors should form their own views on the merits of an investment related to the Reference Asset based on their own investigation thereof.
The description below represents a summary only of some of the features of the investment product described in this Final Terms. It does not purport to be an exhaustive description.
The product is issued as Certificates in EUR and aims to provide a positive return if the price of the Reference Asset falls over the investment period and conversely, a negative return if the price of the Reference Asset rises over the investment period. This inverse exposure to the Reference Asset (typically referred to as ''short exposure'') may be amplified (leveraged) in certain circumstances. The return on the Certificates factors in a net financing cost which may be positive or negative and which is comprised of any proceeds that the Issuer receives through its hedge for the Certificates, less (i) any associated borrowing costs, and (ii) a variable charge for arranging the Certificates. This net financing cost will accrue daily and be added to, or deducted from (as the case may be) the amount payable to investors on redemption of the Certificates.
The Certificates will cancel automatically if the value of the Reference Asset rises to, or above, a specified level.
The amount payable on settlement of the Certificates will be determined by reference to the value of the Reference Asset, the outstanding financed amount and the Parity.
The maximum loss for an investor in respect of each Certificate is limited to the purchase price of the Certificate.
9 Performance Of Rate[S] Of Exchange And Explanation Of Effect On Value Of Investment
N/A
10 Operational Information
Any clearing system(s) other than [For US Warrants: DTC,] Euroclear Bank S.A./N.V. and Clearstream Banking Société Anonyme (together with their addresses) and the relevant identification number(s):
Monte Titoli
Delivery: Delivery against payment
Names and addresses of additional Paying Agents(s) (if any):
Intended to be held in a manner which would allow Eurosystem eligibility:
N/A No
11 Offer Information
N/A
12 Form Of Notice From Beneficial Owner To []
NOTICE FROM THE BENEFICIAL OWNER TO HIS/HER FINANCIAL INTERMEDIARY
(to be completed by the beneficial owner of the Securities for the valid renouncement of Automatic
Exercise of the Securities) BARCLAYS BANK PLC
Index Linked Mini Short Certificates ISIN: GB00B4SV4T98
(the ‘‘Securities’‘)
To: []
Fax Number: [] Email: []
(the ‘‘Financial Intermediary’‘)
We, the undersigned beneficial owner(s) of Securities, hereby communicate that we are renouncing the right to Automatic Exercise of the Securities specified below, in accordance with the Conditions of the Securities.
The undersigned understands that if this notice is not duly completed and delivered in order to enable the Securityholder to renounce automatic redemption of the Securities prior to the Renouncement Notice Cut-Off Time, or if this notice is determined to be incomplete or not in proper form [(in the determination of the Financial Intermediary)] it will be treated as null and void.
ISIN Code/Series number of the Securities: GB00B4SV4T98 Number of Italian Securities the subject of this notice: [ ]
Name of beneficial owner of the Securities
Signature
Schedule
Definitions relating to the determination of the Exercise Cash Settlement Amount
Financing Level Currency
Current Financing Level
Initial Financing Level
EUR
In respect of the Issue Date, the Initial Financing Level.
In respect of any subsequent calendar day, an amount determined by the Issuer in good faith and in a reasonable manner equal to:
(CFLR + FCC)
Where:
‘‘CFLR’‘ is the Current Financing Level in respect of the immediately preceding Reset Date.
‘‘FCC’‘ is the Funding Cost currently in respect of such calendar day.
The Issuer shall make reasonable efforts to publish the applicable Current Financing Level on xxx.xxxxxxxx.xxx
The Current Financing Level will be published and forwarded to the relevant Exchanges, Clearing Systems and data vendors prior to 13:00 CET on the Borsa Italiana Business Day preceding the day when the Current Financing Level becomes effective.
Where:
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
EUR 7938.67
Reset Dates Each calendar day. The first Reset Date shall be the Issue Date.
Funding Cost In respect of any calendar day, an amount, determined by the Issuer in its discretion (exercised in good faith and in a reasonable manner) equal to: FRC × CFLR × d/365
Where:
‘‘FRC’‘ is the Funding Rate in respect of such calendar day.
‘‘CFLR’‘ is the Current Financing Level in respect of the immediately preceding Reset Date.
‘‘d’‘ is the number of calendar days from, but excluding, the immediately preceding Reset Date to, and including, such calendar day.
For the avoidance of doubt, it should be noted that the Funding Cost may, in respect of any day, be a negative amount.
Funding Rate In respect of any calendar day, a rate equal to:
(RR - CM)
Where:
‘‘CM’‘ is the Current Margin.
‘‘RR ‘‘ is the Rate in respect of the immediately preceding Borsa Italiana Business Day.
Where:
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
Current Margin (CM) 3.00%
Rate
In respect of any Calculation Period, the Rate shall be determined by the Issuer by reference to the one month LIBOR rate, for deposits in the Reference Asset Currency in the inter-bank market, as published on Bloomberg page: BBAM. If such rate is unavailable, the Determination Agent may determine the Rate in good faith by reference to such other source as it deems appropriate.
Calculation Period Each period from, and excluding, one Reset Date (or, in the case of the first period the Issue Date) to, and including, the immediately following Reset Date.
Definitions relating to the Specified Early Cancellation Event
Current Stop Loss Level
In respect of the Issue Date, the Initial Stop Loss Level.
In respect of any subsequent calendar day, the Current Stop Loss Level shall be determined and reset on each calendar day by the Issuer, acting in its discretion (exercised in good faith and in a reasonable manner), and shall be set equal to:
(CFLC - SLPC)
Where:
‘‘CFLC’‘ is the Current Financing Level in respect of such calendar day.
‘‘SLPC’‘ is the Current Stop Loss Premium in respect of such calendar day. The Current Stop Loss Level shall be rounded in accordance with the Stop Loss Rounding Convention.
The Issuer shall make reasonable efforts to publish the applicable Current Stop Loss Level on xxx.xxxxxxxx.xxx.
The Current Stop Loss Level will be published and forwarded to the relevant Exchanges, Clearing Systems, data vendors prior to 13:00 CET Italian time on the Borsa Italiana Business Day preceding the day when the Current Stop Loss Level becomes effective.
Where;
‘‘Borsa Italiana Business Day’‘ means any Scheduled Trading Day on which Borsa Italiana is open for trading during its regular trading sessions, notwithstanding Borsa Italiana closing prior to its Scheduled Closing Time.
Initial Stop Loss Level EUR 7770.00, determined as an amount in the Reference Asset Currency equal to the Initial Financing Level minus the Initial Stop Loss Premium, rounded in accordance with the Stop Loss Rounding Convention
Current Stop Loss Premium
Initial Stop Loss Premium
Stop Loss Rounding Convention
In respect of the Issue Date, the Initial Stop Loss Premium.
In respect of any subsequent calendar day, the Current Stop Loss Premium shall be an amount in the Financing Level Currency determined by the Issuer in good faith and in a reasonable manner equal to:
2.00% × CFLC
Where:
‘‘CFLC’‘ is the Current Financing Level in respect of such calendar day.
2.00% × FLI
Where:
‘‘FLI’‘ is the Initial Financing Level Downwards to the nearest EUR 10.00
Index Disclaimer
The DAX® was developed and is real-time calculated and published by Wiener Börse AG. The full name of the Index and its abbreviation are protected by copyright law as trademarks. The DAX® index description, rules and composition are available online on xxx.xxxxxxxxxxxx.xx - the index portal of Wiener Börse AG. The Issuer and Wiener Börse AG do not accept any liability for the accuracy and completeness of the information published on the web site. A non- exclusive authorisation to use the DAX® in conjunction with financial products by Issuer was granted upon the conclusion of a license agreement with Wiener Börse AG.
ITALIAN TAXATION
The following is a summary of current Italian law and practice relating to the taxation of the Certificates (the ‘‘Securities’‘). The statements herein regarding taxation are based on the laws in force in Italy as at the date of these Final Terms and are subject to any changes in law occurring after such date, which changes could be made on a retroactive basis. The following summary does not purport to be a comprehensive description of all the tax considerations which may be relevant to a decision to subscribe for, purchase, own or dispose of the Securities and does not purport to deal with the tax consequences applicable to all categories of investors, some of which (such as dealers in securities or commodities) may be subject to special rules.
Prospective purchasers of the Securities are advised to consult their own tax advisers concerning the overall tax consequences of their ownership of the Securities.
Italian taxation of Securities
Pursuant to Article 67 of Presidential Decree No. 917 of 22 December 1986 and Legislative Decree No. 461 of 21 November 1997, as subsequently amended, where the Italian resident Certificateholder is (i) an individual not engaged in an entrepreneurial activity to which the Certificates are connected, (ii) a non-commercial partnership pursuant to article 5 of TUIR (with the exception of general partnership, limited partnership and similar entities), (iii) a non- commercial private or public institution, or (iv) an investor exempt from Italian corporate income taxation, capital gains accrued under the sale or the exercise of the Certificates are subject to a 12.5% substitute tax (imposta sostitutiva). The recipient may opt for three different taxation criteria:
(1) Under the tax declaration regime (regime della dichiarazione), which is the default regime for taxation of capital gains realised by Italian resident individuals not engaged in an entrepreneurial activity to which the Certificates are connected, the imposta sostitutiva on capital gains will be chargeable, on a yearly cumulative basis, on all capital gains, net of any offsettable capital loss, realised by the Italian resident individual holding the Certificates not in connection with an entrepreneurial activity pursuant to all sales or redemptions of the Certificates carried out during any given tax year. Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity must indicate the overall capital gains realised in any tax year, net of any relevant incurred capital loss, in the annual tax return and pay imposta sostitutiva on such gains together with any balance income tax due for such year. Capital losses in excess of capital gains may be carried forward against capital gains realised in any of the four succeeding tax years.
(2) As an alternative to the tax declaration regime, Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity may elect to pay the imposta sostitutiva separately on capital gains realised on each sale or redemption of the Certificates (the ‘‘risparmio amministrato’‘ regime provided for by Article 6 of the Legislative Decree No. 461 of 21 November 1997, as a subsequently amended, the ‘‘Decree No. 461’‘). Such separate taxation of capital gains is allowed subject to (i) the Certificates being deposited with Italian banks, SIMs or certain authorised financial intermediaries and (ii) an express valid election for the risparmio amministrato regime being punctually made in writing by the relevant Certificateholder. The depository is responsible for accounting for imposta sostitutiva in respect of capital gains realised on each sale or redemption of the Certificates (as well as in respect of capital gains realised upon the revocation of its mandate), net of any incurred capital loss, and is required to pay the relevant amount to the Italian tax authorities on behalf of the taxpayer, deducting a corresponding amount from the proceeds to be credited to the Certificateholder or using funds provided by the Certificateholder for this purpose. Under the
risparmio amministrato regime, where a sale or redemption of the Certificates results in a capital loss, such loss may be deducted from capital gains subsequently realised, within the same securities management, in the same tax year or in the following tax years up to the fourth. Under the risparmio amministrato regime, the Certificateholder is not required to declare the capital gains in the annual tax return.
(3) Any capital gains realised or accrued by Italian resident individuals holding the Certificates not in connection with an entrepreneurial activity who have entrusted the management of their financial assets, including the Certificates, to an authorised intermediary and have validly opted for the so-called ‘‘risparmio gestito’‘ regime (regime provided for by Article 7 of the Decree No. 461) will be included in the computation of the annual increase in value of the managed assets accrued, even if not realised, at year end, subject to a 12.5 per cent. substitute tax, to be paid by the managing authorised intermediary. Under this risparmio gestito regime, any depreciation of the managed assets accrued at year end may be carried forward against increase in value of the managed assets accrued in any of the four succeeding tax years. Under the risparmio gestito regime, the Certificateholder is not required to declare the capital gains realised in the annual tax return.
Where an Italian resident Securityholder is a company or similar commercial entity, or the Italian permanent establishment of a foreign commercial entity to which the Securities are effectively connected, capital gains arising from the Securities will not be subject to imposta sostitutiva, but must be included in the relevant Securityholder's income tax return and are therefore subject to Italian corporate tax (and, in certain circumstances, depending on the ‘‘status’‘ of the Securityholder, also as a part of the net value of production for IRAP purposes).
Any capital gains realised by a Securityholder which is an open-ended or closed-ended investment fund (subject to the tax regime provide by Law No. 77 of 23 March 1983) or a SICAV will be included in the result of the relevant portfolio accrued at the end of the tax period, to be subject to the 12.50 per cent. ad hoc substitute tax (the Collective Investment Fund Tax). As of 1 July 2011, the Collective Investment Fund Tax will be repealed and substituted by a substitute tax of 12.5% levied on proceeds distributed by the Fund or the SICAV or received by certain categories of unitholders upon redemption or disposal of the units.
Any capital gains realised by a Securityholder which is an Italian pension fund (subject to the regime provided by article 17 of the Legislative Decree No. 252 of 5 December 2005) will be included in the result of the relevant portfolio accrued at the end of the tax period, to be subject to the 11 per cent. ad hoc substitute tax.
Capital gains realised by non-Italian resident Securityholders are not subject to Italian taxation provided that the Securities (i) are transferred on regulated markets, or (ii) if not transferred on regulated markets, are held outside Italy.
The provisions of the applicable tax treaties against double taxation entered into by Italy apply if more favourable and all relevant conditions are met.
Atypical securities
In accordance with a different interpretation of current tax law, it is possible that Certificates would be considered as 'atypical' securities pursuant to Article 8 of Law Decree No. 512 of 30 September 1983 as implemented by Law No. 649 of 25 November 1983. In this event, payments relating to Certificates may be subject to an Italian withholding tax, levied at the rate of 27 per cent.
The 27 per cent. withholding tax mentioned above does not apply to payments made to a non- Italian resident holder of the Certificate and to an Italian resident holder of the Certificate which is (i) a company or similar commercial entity (including the Italian permanent establishment of foreign entities), (ii) a commercial partnership, or (iii) a commercial private or public institution.
The withholding is levied by the Italian intermediary appointed by the Issuer, intervening in the collection of the relevant income or in the negotiation or repurchasing of the Securities.
Inheritance and gift taxes
Pursuant to Law Decree No. 262 of 3 October 2006, (Decree No. 262), converted into Law No. 286 of 24 November 2006, the transfers of any valuable asset (including shares, bonds or other securities) as a result of death or donation are taxed as follows:
(i) transfers in favour of spouses and direct descendants or direct ancestors are subject to an inheritance and gift tax applied at a rate of 4 per cent. on the value of the inheritance or the gift exceeding EUR 1,000,000;
(ii) transfers in favour of relatives to the fourth degree and relatives-in-law to the third degree, are subject to an inheritance and gift tax applied at a rate of 6 per cent. on the entire value of the inheritance or the gift. Transfers in favour of brothers/sisters are subject to the 6 per cent. inheritance and gift tax on the value of the inheritance or the gift exceeding EUR 100,000; and
(iii) any other transfer is, in principle, subject to an inheritance and gift tax applied at a rate of 8 per cent. on the entire value of the inheritance or the gift.
EU Savings Directive
Under EC Council Directive 2003/48/EC (‘‘EU Savings Directive’‘) on the taxation of savings income, Member States are required to provide to the tax authorities of another Member State, including Belgium from 1 January 2010, details of payments of interest (or similar income) paid by a person within its jurisdiction to an individual resident in that other Member State or to certain limited types of entities established in that other Member State. However, for a transitional period Luxembourg and Austria are instead required (unless during that period they elect otherwise) to operate a withholding system in relation to such payments (the ending of such transitional period being dependent upon the conclusion of certain other agreements relating to information exchange with certain other countries). A number of non-EU countries and territories including Switzerland have agreed to adopt similar measures (a withholding system in the case of Switzerland).
The European Commission has proposed certain amendments to the Directive, which may, if implemented, amend or broaden the scope of the requirements described above.
Implementation in Italy of the EU Savings Directive
Italy has implemented the EU Savings Directive through Legislative Decree No. 84 of 18 April 2005 (‘‘Decree No. 84’‘). Under Decree No. 84, subject to a number of important conditions being met, in the case of interest paid to individuals which qualify as beneficial owners of the interest payment and are resident for tax purposes in another Member State, Italian qualified paying agents shall not apply the withholding tax and shall report to the Italian Tax Authorities details of the relevant payments and personal information on the individual beneficial owner.
Such information is transmitted by the Italian Tax Authorities to the competent foreign tax authorities of the State of residence of the beneficial owner.
VERSION 2
Final Terms
BARCLAYS BANK PLC
(Incorporated with limited liability in England and Wales)
BARCLAYS CAPITAL (CAYMAN) LIMITED
(Incorporated with limited liability in the Cayman Islands)
GLOBAL STRUCTURED SECURITIES PROGRAMME
for the issue of Securities
BARCLAYS BANK PLC
2,255,000 DAX® (Total Return Index) Linked Mini Short Certificates ISIN code: GB00B4KKL596
under the Global Structured Securities Programme Issue Price: EUR 0.76 per Security
This document constitutes the final terms of the Securities (the ‘‘Final Terms’‘) described herein for the purposes of Article 5.4 of the Directive 2003/71/EC and is prepared in connection with the Global Structured Securities Programme established by Barclays Bank PLC (the ‘‘Bank’‘) and Barclays Capital (Cayman) Limited (‘‘BCCL’‘) and is supplemental to and should be read in conjunction with the Base Prospectus dated 6 August 2010 as supplemented, amended, updated and/or restated from time to time, which constitutes a base prospectus (the ‘‘Base Prospectus’‘) for the purpose of the Directive 2003/71/EC. Full information on the Issuer and the offer of the Securities is only available on the basis of the combination of these Final Terms and the Base Prospectus. The Base Prospectus is available for viewing during normal business hours at the registered office of the Issuer and the specified office of the Issue and Paying Agent and copies may be obtained from such office. Words and expressions defined in the Base Prospectus and not defined in this document shall bear the same meanings when used herein.
The Issuer accepts responsibility for the information contained in these Final Terms. To the best of its knowledge and belief (having taken all reasonable care to ensure that such is the case) the information contained in these Final Terms is in accordance with the facts and does not contain anything likely to affect the import of such information.
Investors should refer to the sections headed ‘‘Risk Factors’‘ in the Base Prospectus for a discussion of certain matters that should be considered when making a decision to invest in the Securities.
Barclays Capital
Final Terms dated 16 June 2011
The distribution of this document and the offer of the Securities in certain jurisdictions may be restricted by law. Persons into whose possession these Final Terms come are required by the Bank to inform themselves about and to observe any such restrictions. Details of selling restrictions for various jurisdictions are set out in ‘‘Purchase and Sale’‘ in the Base Prospectus. In particular, the Securities have not been, and will not be, registered under the US Securities Act of 1933, as amended, and are subject to US tax law requirements. Trading in the Securities has not been approved by the US Commodity Futures Trading Commission under the US Commodity Exchange Act of 1936, as amended. Subject to certain exceptions, the Securities may not at any time be offered, sold or delivered in the United States or to US persons, nor may any US persons at any time trade or maintain a position in such Securities.
Part A
Terms and Conditions of the Securities
The Securities shall have the following terms and conditions, which shall complete, modify and/or amend the Base Conditions and/or any applicable Relevant Annex(es) set out in the Base Prospectus dated 6 August 2010.
Parties
Issuer: Barclays Bank PLC
Guarantor: N/A
Manager: Barclays Bank PLC
Determination Agent: Barclays Bank PLC
Issue and Paying Agent: The Bank of New York Mellon
Stabilising Manager: N/A
Registrar: N/A
CREST Agent: N/A
Paying Agents: N/A
Transfer Agent: N/A
Exchange Agent: N/A
Additional Agents: N/A