Correction of Errors in Exchange Traded Products
Nordea Bank Abp, acting as the issuer, has identified and decided to amend certain final terms related to instruments listed in their documentation. This corrective action is taken based on identified manifest errors that needed rectification. The bank is entitled to make such modifications under subsection (i) of Condition 18, which relates to modifications as stated in the base prospectus for the issuance of warrants and certificates.
Details of the Amendments
The necessary adjustments pertain to Base Rate 1 and Base Rate 2, as well as the relevant screen pages associated with these rates. The corrections will ensure that accurate exposures in overnight rates are established.
Base Rate 1 Revisions
For instruments tied to specific underlying assets, here are the revisions: For USDSEK, the rate is SOFR; for EURSEK, it's ESTER; for CHFSEK, the rate is SARON; for NOKSEK, NOK Overnight; for USDNOK, SOFR; for EURNOK, ESTER; for USDJPY, SOFR; for EURUSD, ESTER; for GBPUSD, SONIA; and for USDCAD, SOFR. Lastly, EURGBP now refers to ESTER.
Base Rate 2 Changes
The amendments related to Base Rate 2 are equally important. For EURSEK and USDSEK, the applicable rate is STIBOR Overnight. For EURUSD, the reference is now SOFR; for CHFSEK, it remains STIBOR Overnight; for USDJPY, the rate is TONAR. For NOKSEK, it's STIBOR Overnight, while USDNOK links to NOK Overnight. The amendments also address GBPUSD, referring to SOFR, and for USDCAD, the rate is CORRA. Finally, EURNOK refers to NOK Overnight.
Relevant Screen Pages Adjustments
For Base Rate 1, adjustments include updates for underlying assets as follows: USDSEK will refer to the SOFRRATE Index, EURSEK to the ESTRON Index, CHFSEK to the SSARON Index, NOKSEK to the NOWA Index, and so forth. All other rates have been accurately matched with the appropriate indices.
Base Rate 2 Relevant Screens
For Base Rate 2, the necessary updates encompass EURSEK and USDSEK, both now referencing STIB1D Index. For EURUSD, the rate is associated with SOFRRATE Index, while for CHFSEK, it also refers to STIB1D Index. Further, USDJPY will refer to the MUTSCALM Index, while NOKSEK connects to STIB1D Index. For USDNOK, it will now point to the NOWA Index, and GBPUSD will refer to SOFRRATE Index. The updates conclude with USDCAD's relation to CAONREPO Index and EURNOK's connection to NOWA Index.
Conclusion of Amendments
These adjustments serve to clarify any confusion regarding the previously recorded information pertaining to the exchange traded products. Ensuring accuracy in such essential financial instruments reinforces Nordea Bank's commitment to providing transparent and reliable financial services. Stakeholders can be confident that these corrections will lead to an improved understanding of the products associated with the amended rates.
Frequently Asked Questions
What are the main changes made by Nordea Bank?
Nordea Bank amended the final terms and rates corresponding to various underlying FX assets, correcting manifest errors in Base Rate 1 and Base Rate 2.
Why did Nordea Bank make these amendments?
The amendments were necessary to rectify identified manifest errors within the terms of their instruments, ensuring transparency and accuracy.
How will these changes affect investors?
Investors will have clearer and more accurate information relating to the rates and terms of the exchange traded products, providing better insights into their investments.
What are Base Rate 1 and Base Rate 2?
Base Rate 1 and Base Rate 2 refer to the reference rates used for calculating returns on specific underlying assets associated with warrants and certificates issued by Nordea Bank.
Where can I find more information about these products?
For additional details, stakeholders can check the updated base prospectus provided by Nordea Bank regarding the instruments and their terms.
