Media Relations

Cancellation and redemption of ETF Manager certificates

Notice is hereby given that Mediobanca has decided to avail itself of the “Change in Law” clause [1] provided in the regulations for the certificates distributed by Cassa di Risparmio di Bolzano S.p.A. (“SparKasse”) listed below (jointly, the “Certificates”) and to proceed to cancel and redeem the Certificates as follows:

  • ETF Manager World Equity Index Certificates (ISIN XS0639602506);
  • ETF Manager Conservative Bond Index Certificates (ISIN XS0639603652);
  • ETF Manager Dynamic Bond Index Certificates (ISIN XS0639603223);
  • ETF Manager European Equity Index Certificates (ISIN XS0639602928).

The decision to cancel and redeem the Certificates is due to the fact that, because of the changes introduced by Regulation (EU) 2016/1011 (the “Benchmark Regulation”), to maintain the proprietary indexes underlying the Certificates, and implement the related measures which it entails, would result in a materially increased cost for Mediobanca.

The Certificates will be cancelled and redeemed on 18 December 2019, and on the same date Mediobanca will pay the holders of the Certificates an amount of cash equal to the fair market value of the instruments as at the date of 16 December 2019. The fair market value of each Certificate will be equal to the value on 16 December 2019 of the mark-to-market of the individual ETFs underlying the index to which the Certificate is linked, each pro rata to its own weighting, plus the value of the cash flows for the period generated by each component of the relevant index, less the management fee again for the period, as explained in more detail in the definition of “Index Level” contained in the Final Terms of each Certificate.

On 16 December 2019, Mediobanca will issue notice of the amount for each series of the Certificates to be cancelled and redeemed.

Until 13 December 2019 Mediobanca will remain available to buy back the Certificates at market conditions via the Bloomberg platform.

For further information on the Certificates’ characteristics, reference should be made to www.mediobanca.it.

Milan, 14 November 2019

 
    1. It should be noted in this connection that under the “Change in Law” clause, if new legal or regulatory provisions are enacted, or in the event of changes to the existing regulations applicable to the instruments in question, which are such that the issuer believes, at its own discretion, it would incur a materially increased cost by meeting its obligations in respect of the financial instruments in question, it may choose to cancel the instruments, providing notice to the holders of the instruments and paying an amount of cash to them equal to the fair market value of such instruments less the costs related to the unwinding of derivatives executed to hedge the position taken in the instruments concerned.

     

     
 

 

Last update: 15/11/2019 - 09:50