Nordea Bank AB (publ) will launch 2 new index certificate bear series on 10 March 2010 under its warrant programme. The underlying asset of the index certificate is a futures contract linked to NASDAQ 100 Index or S&P500 Index. The index certificates are put certificates. The index certificates are redeemed by cash payment. Upon expiry of an index certificate bear, the possible net value is paid in cash to the holder of the certificate.
Index certificate bear specific terms and conditions
All index certificates are issued under the warrant programme of Nordea Bank AB (publ) dated 6 October 2009. The base prospectus for the warrant programme and the final terms for each warrant and certificate serie are available at the issuer’s website: www.nordea.fi/warrantit. The following terms only summarize the final terms and the base prospectus.
Please notice that the Final Terms of the issue are released only in English.
Nordea Bank AB (publ)
Index Certificate Bear (put)
A futures contract linked to NASDAQ 100 Index or S&P500 Index.
Cash Settlement Amount
Accumulated value on the expiration date
Yes (see final terms)
Accumulated value on the expiration date, if no early expiration event has occurred (see final terms)
Closing Price Determination Date
The earliest of the following dates:
1. Expiration Date: See Table 2;
2. The date declared expiration date according to Expiration Date Determination Day; or
3. If the value of the underlying contract rises 50% or more in one day it constitutes an early expiration event.
Nasdaq OMX Helsinki
150% of the Underlying contracts reference price the previous trading day.
NASDAQ 100 Index and S&P500 Index:
Reference price determination method
Valuation time for underlying instrument and currency is local time Helsinki 19:00.
The Bank carries out automatic cash settlement
EUR / USD exchange rate
Total number of certificates
1 000 000 (see Table 2 below)
Nordea Bank operates as the Market Maker.
Market Maker undertakes to provide bid and ask quotation for the Certificates during the time Certificates are subject to trading on a regulated market, multilateral trading facility or other market place. The undertaking is valid in the continuous trading of the regulated market, multilateral trading facility or other marketplace.
The difference between bid and ask quotation is at most (maximum spread):
Four (4) percent or
0,10 EUR, if ask price is < 2 EUR
Quotations concern a minimum amount of five hundred Certificates. No bid quotation is given for Certificates that have a market value less than ten (10) cents. Market Maker is entitled to define the values of the parameters affecting the market making quotation. Market Maker is not liable to maintain its duties as Market Maker, if trading with the underlying asset has ceased.
Market Maker reserves the right to temporarily decline to quoting bid and ask prices during a period in which the Market Maker hedges its own position in an Underlying As
In conjunction with such limitation of the Market Maker’s obligation to quote bid and ask prices, the Market Maker shall notify parties on the market regarding the limitation through a notice via the regulated market/multilateral trading facility/marketplace.
Additional information on the underlying asset and underlying company
Additional information on the company and the development of the value of the underlying asset is available on the website of the OMX Nordic Exchange Helsinkihttp://omxgroup.com/nordicexchange and www.nasdaq.comand www.standardandpoors.com.
Additional information on the volatility of the underlying asset is available from the issuer, tel. +358 9 369 49134.
The investors should analyse information on the company issuing the index before making decisions on certificates.
The index certificates bull to be issued:
BEAR NSDQ X2 NF
NASDAQ 100 INDEX
BEAR SP500 X2 NF
BEAR NSDQ X2 NF
BEAR SP500 X2 NF
Helsinki, 9 March 2010
NORDEA BANK AB (publ)
For further information, please contact Tommi Saarnio +358 9 369 49354.