Index-Linked Bond “Finland” Maturity Report

Investment period

5 years

16.08.2013.–15.08.2018.

Redemption value

132.73%

of nominal value

Participation rate

80%

Underlying reference. The performance of the bond depended on the underlying basket of 10 Finnish company stocks with equal weight in each one (1/10). At the maturity of the bond, the result of the four best performing equities was replaced by an increase of + 40%.

Index-linked bond performance review

The bond was structured to benefit from the Finnish equity market, which offered to investors great return opportunities over the long term. The overall Eurozone expansionary monetary policy, the focus of local companies on the developing country markets and their experience in the field of technology combined with a successful business and cost control management potentially pledged the value growth of the respective equities at bond’s issuance date.

Finnish equity market performed very strongly during the lifetime of the bond. Despite being severely hit by anti-Russia sanctions in 2014 Finnish economy managed to recover and handsomely outpace the average EU economic growth since year 2016. Concentration of Finnish companies in cyclical industries and significant export orientation helped them take advantage of improving global economy and trade. As a result, Finnish equity market provided double the return of the overall European equity market and outperformed global stocks by over 10% during the tenure of the bond. Consequently, the bond had a strong performance, especially taking into account its low risk.

Index-linked bond performance

Further investments

We recommend considering reinvestment of the nominal value and return on your investment. To get a recommendation on the possible investment options that are suitable for your investment goals, please contact your personal investment advisor. In order to get more information on all current investment solutions, please visit Luminor homepage luminor.lt.

DISCLAIMER

This material cannot be considered as a personal recommendation for orders with financial instruments. The information contained in this material is for informational purposes only. Index-linked bonds are considered to be complex financial instruments that are not suitable for all investors. The index-linked bond offer is prepared in accordance with the Final Terms containing all information on the offer, the structure of the product, its maturity and risk factors. In accordance with the Law On Personal Income Tax of Republic of Latvia income received from index-linked bonds is taxed. Prior to any investment decision, it is recommended to get a professional investment advice. Luminor Bank AS is not liable for any damages that might be faced by the customer due to reliance upon information given therein, nor it gives taxation, accounting or legal advice.

This disclaimer does not constitute a complete disclosure of the risks of the particular investment product. This material may not be reproduced, distributed or published for any purpose without a written approval of Luminor Bank AS.