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UBS AG LONDON BRANCH - Adjustment Event on UBS Certificates linked to the Absa Global Equity Multi-Factor Risk-Controlled (13%) ETN

Release Date: 21/04/2022 16:00
Code(s): ABSGEA     PDF:  
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Adjustment Event on UBS Certificates linked to the Absa Global Equity Multi-Factor Risk-Controlled (13%) ETN

UBS AG, London Branch
(“UBS AG” or the “Company”)
(Incorporated and domiciled in Switzerland)
(Registration number: CHE-101.329.561)

Notification of an Adjustment Event on UBS Certificates linked to the Absa
Global Equity Multi-Factor Risk-Controlled (13%) ETN (the "Notes")– Series
3.

Certificateholders of UBS Certificates linked to the Absa Global Equity
Multi-Factor Risk-Controlled (13%) ETN (the "Notes") are hereby advised of
an adjustment event that may have an effect on the theoretical value of the
notes.

The amendment relates specifically to the replacement of interest rate used
in the base calculation detailed in the termsheet and final terms of the
abovementioned certificate. With immediate effect, the interest rate namely
LIBOR (London Interbank Offered Rate) will be replaced by the SOFR (Secured
Overnight Financing Rate).

Recently supervisory guidance has been provided by regulators globally,
including US, UK, Australia, and Hong Kong, that the ‘new use’ of USD LIBOR
should stop from 1 January 2022 except for a very limited set of use cases.

Furthermore, on 16 November 2021, FCA confirmed its rules under the UK
Benchmarks Regulation that, after the end of 2021, will prohibit new use of
the continuing overnight, 1-, 3-, 6- and 12-month USD LIBOR settings, in
line with US guidance and existing FCA and PRA supervisory expectations. The
FCA has also confirmed the exceptions to this prohibition are in line with
these limited set of use cases.

Regulators identify the new use of USD LIBOR referred to in agreements or
transactions as that which (1) creates additional LIBOR exposure for a
supervised institution; or (2) extends the term of an existing LIBOR
contract.

UBS supports the regulatory intent to transition the market away from USD
LIBOR. Our preference is that any USD interest rate risk be transacted in
SOFR going forward.

Further information on the LIBOR transition and FAQs, please visit:
https://www.ubs.com/global/en/investment-bank/libor-
transition/overview.html

INSTRUMENT NUMBER:             84424
ALPHA CODE:                    ABSGEA
ISIN:                          ZAE000272753
ISSUE SIZE (UNITS):            2,000,000
ISSUE PRICE (RAND/ UNIT):      100.00
EXPIRY DATE:                   11 June 2024
REFERENCE INDEX:               MSCI World Diversified Multi-Factor USD
                               Net Total Return Index
                               (Bloomberg code: M1WODMF Index)

The ETN references the Absa Global Equity Multi-Factor Risk-Controlled (13%)
Strategy ("Strategy"). The Strategy utilises a methodology that encompasses
two modern approaches of investment and risk management, namely risk-premia
investing and volatility targeting. The ETN provides an investor access to
a pay-off that aims to:

   1) reduce downside risk through a volatility target mechanism and
   2) gain multi-factor (value, momentum, quality, and size) global equity
      exposure via the reference index

For further information kindly contact:

UBS KeyInvest South Africa
Tel.: +27 11 322 7129 / 7317
E-mail: keyinvestza@ubs.com
Web: http://keyinvest-za.ubs.com/products

Absa Index & Structured Solutions
Tel: +27 86 134 5223
Email: aiss@absa.co.za
Website: www.absa.co.za/ss

Johannesburg
21 April 2022

Sponsor: UBS South Africa (Pty) Limited

Date: 21-04-2022 04:00:00
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