JSE LISTED INDEX LINKED NOTE

Investment Overview

Experience a unique, JSE-listed, 5-year structured note that offers the security of 100% capital protection in ZAR, guaranteed by Absa Bank Ltd. This innovative product provides a dual-return structure: enjoy predetermined fixed returns at year one and year three, while also benefiting from uncapped potential for capital growth through participation in the S&P 500 Daily Risk Control 10% USD Excess Return Index. It is an ideal solution for discerning individuals, trusts, and corporates seeking a balance of safety and significant market-linked upside.

Investment Premise

This investment is designed for individuals, trusts, and corporate entities who are seeking to preserve capital while gaining exposure to potential upside from the US stock market. The core premise is to offer a secure investment vehicle that mitigates downside risk through a 100% capital guarantee from a reputable financial institution, Absa Bank Ltd. It is particularly suitable for investors with a moderate risk appetite who wish to diversify their holdings and participate in global market growth without directly purchasing equities. The fixed return components provide a predictable income stream, while the index-linked portion offers the potential for higher, market-driven returns. The indicative rate for the week of 17 April 2025, provides a timely opportunity for entry.

Essentials

• Capital Protected100%
• Term5 Years
• CurrencyZAR
• IssuerAbsa Bank Ltd
• Underlying IndexS&P 500 Daily Risk Control 10% USD Excess Return Index
• Capital GuaranteeAbsa Bank Ltd
• Suitable forIndividuals, Trusts, Corporates

Documents

Content

The investment is technically a JSE-listed Structured Note. The capital guarantee and the fixed returns are secured by an underlying deposit with Absa Bank Ltd, which holds a local rating of Aa1.za, signifying a very low credit risk. This structure ensures that the investor's initial capital is protected from market downturns. The growth component of the investment is achieved through 100% participation in the S&P 500 Daily Risk Control 10% USD Excess Return Index. This index is designed to manage volatility by adjusting its exposure to the S&P 500. The performance is uncapped, meaning there is no limit to the potential returns from the index-linked portion of the investment. This combination of a guaranteed return and uncapped growth potential makes it a unique and attractive offering.