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Average Return Warrants

Description

Average Return Warrants:

  • are European style and may only be exercised on the final Expiry Date
  • have an averaging return feature based on a larger number of closing prices which may lower the warrant’s price fluctuation prior to expiry
  • may be suitable to longer term investors due to the averaging feature of the cash settlement amount

What happens upon warrant expiry

The Cash Settlement Amount in respect of each Exercise Amount of Warrants, shall be an amount (if positive) payable in the Settlement Currency equal to the Entitlement in respect of each Exercise Amount for the time being multiplied by the below formula:

Sum of the Periodic Reference Prices  
   -    Exercise Price
Total Number of Periodic Fixing Dates


For the avoidance of doubt, if the Cash Settlement amount is a negative figure, it shall be deemed to be zero.

Additional features

Each Average Return Warrant will have the following features, in addition to the normal features of a vanilla call or put warrant.

Periodic Fixing Date:

A series of pre-determined dates, in which the corresponding Periodic Reference Price will be fixed, provided that if any such day is not a Business day, the immediately succeeding Business Day

Periodic Reference Price:

This means, in respect of each Periodic Fixing Date, the arithmetic mean of the closing prices of one share (as derived from the daily publications on the Singapore Exchange Securities Trading Limited, subject to any adjustments as determined by the issuer in accordance with the Conditions) to such closing prices as may be necessary to reflect any capitalisation, rights issue, distribution or the like) for each of the 5 Valuation Dates prior to such Periodic Fixing Date.

Average Return:

This refers to the calculation of the return on the Warrants only; the return of the Average Return Call Warrants is calculated by reference to the average of the Periodic Reference Prices, that is, by reference to the sum of the Periodic Reference Prices divided by the number of the Periodic Fixing Dates; if on the Expiry Date, the average of the Periodic Reference Prices is less than the Exercise Price, the warrant holders will not receive any payment from the issuer and will sustain a total loss of their investment.

This is a brief description of the Average Return Warrants. Investment in Warrants involves risks including market risk, liquidity risk and the risk that the Issuer will be unable to satisfy its obligations under the Warrants. Potential investors should refer to the Base Listing Document and the relevant Supplemental Listing Document for details.

While Macquarie Capital Securities (Singapore) Pte Limited ("MCSSPL") provides the information in good faith and derived from sources believed to be reliable, MCSSPL does not represent or warrant the completeness, reliability, accuracy, timeliness or fitness for any purpose of any of the material and it accepts no responsibility for the accuracy, completeness or timeliness of the information.

This internet site is produced by 'Macquarie Warrants Singapore - Macquarie Capital Securities (Singapore) Pte Limited (Registration No 198702912C)', holder of a capital markets services licence under the Securities and Futures Act, Chapter 289 of Singapore. The information on this internet site is directed and available to residents of Singapore only and is not provided to any person who is a resident of the United States or any other country. Any material provided on this internet site, including any indicative terms are provided for information purposes only and do not constitute an offer, a solicitation of an offer, or any advice or recommendation to conclude any transaction (whether on the indicative terms or otherwise). We recommend you obtain financial, legal and taxation advice before making any financial investment decision. The price of warrants may go down as well as up and there is a risk that an investor may lose some or all their investments. Past performance is not indicative of future performance.

Please visit the following webpage: Company Disclosures for disclosure of corporate finance relationship with the Macquarie Group.

MCSSPL is not an authorised deposit taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia), and MCSSPL's obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL).  MBL does not otherwise guarantee or provide assurance in respect of the obligations of MCSSPL.

MBL does not carry on banking business in Singapore, does not hold a license under the Banking Act, Chapter 19 of Singapore and therefore is not subject to the supervision of the Monetary Authority of Singapore in respect thereof.

 
 
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