FLS is in discussion with various accredited investors for a private placement of preference shares with the following features:
Dividend
Cumulative fixed dividend of 10% per annum
Management Buy-Back Option
18 months at 25% premium
24 months at 20% premium
36 months at 10% premium
beyond 36 months at Management's discretion
Index Linked Note (ILN) to be issued by RBS
FLS is in discussion with The Royal Bank of Scotland plc (RBS) to issue a Structured Note (Index Linked Note “ILN”) for sophisticated investors that would provide long-term funding to FLS. The ILN aims to provide these investors with a unique non-directional avenue to participate in the growth of the FX volume in Asia as captured by the clients’ transactions of FLS.
Features
Combination of RBS zero coupon + IA (Investment Agreement)
Principal protected notes (at maturity) by RBS
Capital Appreciation of 12% at maturity payable by FLS
Index Linked Loan to FLS under the IA
Early Redemption: RBS as issuer will provide secondary market bids
Unique Payout Structure
Payout based on Index of total FX Volume of FLS and all its subsidiaries
Unlimited upside potential for Index payout with increase in total FX Volume
Target Return of average 15%+ p.a. over the life of the Note
Index to be audited by reputable external Auditors
An Attractive Investment Opportunity
Portfolio Diversification
“Non-directional” Note; Index Payout not based on any “direction” of the market
Index Return on IA – always either Positive or flat. NLV drop for “FUNDS” represents MTM / realised loss which is NOT the case in this note
Note NOT linked to any “asset” Volatility (i.e. Dow Jones or S&P or EURUSD etc)
Note can be pledged back with FLS as margin for FX Trading
Reduces cost of trading as client receives index payout via the Note