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Income Notes

Income Notes provide an Annualized Return on an investor’s principal. Investors who purchase an Income Note receive a fixed coupon payment that is paid out over the life of the note, called the Term.

Income Notes are linked to the performance of a stock, Index, ETF, commodity, interest rate or currency, which is called the Underlying. With Income Notes, as long as the Underlying is not down on a price appreciation basis by more than the Protection Level at the end of the Term, the investor will receive their principal back in full, along with the coupons they collected along the way. If the Underlying is down by more than the Protection Level on the final valuation date (the last day of the Term), the investor will be exposed to a loss on their principal, but still keeps the coupons they collected. The amount of the loss is determined by what type of protection an investor selects: Soft or Hard Protection.

Topics:


Term
Underlying
Annualized Return
Protection
AutoCall
Contingent Coupon
Worst-Of
Issuer Call

Quizzes:


Income Core Components
Income Additional Features
Growth Notes

Growth Notes seek to profit from positive movement in the Underlying, while providing a level of downside protection. Many investors think of Growth Notes as “insurance on their investment” given the downside protection that comes with it. Growth Notes can be an appropriate investment for investors who are “cautiously optimistic” on a given Underlying name.

Growth Notes are linked to the performance of a stock, Index, ETF, commodity, interest rate or currency, which is called the Underlying. With Growth Notes, if the Underlying is not down on a price appreciation basis by more than the Protection Level at the end of the Term, the investor will receive their principal back in full, subject to the issuer’s ability to pay. If the Underlying is down by more than the Protection Level on the final observation date (the last day of the Term), the investor will be exposed to a loss of their principal. The amount of the loss is determined by what type of protection an investor selects: Soft or Hard Protection.

As with all structured notes, it’s imperative to understand that the investor does not receive a dividend when owning a Growth Note.

Topics:


Term
Underlying
Protection
Participation Rate
Max Return
Worst-Of

Quizzes:


Growth Core Components
Growth Additional Features
Digital Notes

Digital Notes provide a Fixed Return on an investor’s principal at Maturity. Digital Notes seek to provide a more concrete return at Maturity that isn’t dependent on an investor’s participation rate.

Digital Notes are linked to the performance of a stock, Index, ETF, commodity, interest rate or currency, which is called the Underlying. With Digital Notes, as long as the Underlying is not down on a price appreciation basis by more than the Protection Level at the end of the Maturity, the investor will receive their principal back in full along with the fixed or “digital” return. If the Underlying is down by more than the Protection Level at Maturity, the investor will be exposed to a loss on their principal. The amount of the loss is determined by what type of protection an investor selects: Soft or Hard Protection.

Topics:


Maturity
Underlying
Fixed Return
Initial Level
Protection

Quizzes:


Digital
General Features

Want to take your Structured Note understanding to the next level? This section goes beyond the fundamentals of Structured Notes to establish a more comprehensive approach to their application.

Topics:


Diversification
Market Exposure
Enhanced Return
Issuer Risk
Investment Risk
Income Notes
Growth Notes

Quizzes:


Benefits
Risks
About Absa

About Absa’s Corporate and Investment Banking Division

Corporate and Investment Banking has a diverse footprint that extends from Cape Town to Cairo, serving clients across 12 countries. We are committed to supporting clients, both in developing their business in Africa and in generating operational efficiencies.

Our key differentiators are Commitment

We have a proven appetite and ability to invest in key African markets and it is our vision to build on our leadership in Africa.

Historic presence

100 years presence in the region. A ‘local bank’ with in-depth knowledge of local regulation, legal requirements, market practice, economic backdrop.

Distribution network

One of the largest in Africa, serving many clients. This is a key factor in our ability to fund in local currency and serve wide geographic areas.

Recognition

One of the most respected banks in Africa – we regularly win prestigious awards, recognizing our standing as a leading bank for customer service and product quality.

About Absa Structured and Risk Solutions

Absa Index and Structured Solutions are a leading constructor and distributor of structured solutions, designed in collaboration with financial advisors and our trusted panel of global provider, to meet the bespoke needs of a wide range of investors.

We offer our clients a comprehensive range of carefully designed and investment appropriate risk and return optimized product solutions tailor made to meet the investor’s specific financial needs through our intimate knowledge of market dynamics and product structuring expertise.

The team has over 50 years combined experience in sales, structuring and distribution and continues to develop a multi-faceted solution driven business as well as continuously increasing the awareness and education of structured products. Many of the structuring techniques used have traditionally only been available to institutions, but the team is fully committed to making these available to retail clients, resulting in clear and transparent investments with defined risk and return parameters.

Topics:


Note Programmes
Contact Us
Investor Relations
Videos

Topics:


Yield Enhancer
Absa Global Fixed Return Growth Protector

Glossary


Issuer Information Center


Credit Ratings   CDS Ratings  
Issuer Fitch Moody's S & P 5Y CDS 10Y CDS Min. Investment Size
UBS AA- Aa3 A+ 24.77 43.85 -
Barclays A+ A2 A 44.41 72.28 $500,000
Natixis More Info Download Info A A1 A+ 70.75 109.41 $250,000
Credit Suisse More Info Download Info A- Baa2 BBB+ 50.92 88.97 $500,000
Goldman Sachs A A3 BBB+ 57.60 99.15 -
JP Morgan AA- A2 A- 35.52 69.89 -
BNP Paribas More Info Download Info AA- Aa3 A+ 31.21 48.90 $500,000
Morgan Stanley More Info Download Info A A3 BBB+ 54.54 96.42 $500,000
Bank of America A+ A3 A- 43.34 80.72 -
Société Générale More Info Download Info A+ A1 A 33.21 54.82 $250,000
Investec BBB+ A1 - - $250,000