Prospectus-Final (clean) - Malta Financial Services Authority

Notes may not be a suitable investmentRisk Factors in respect of the NotesA potential investor should not invest in Notes which are complex financial Notes unless the investorhas the expertise (either alone or with a financial advisor) to evaluate how the Notes will performunder changing conditions, the resulting effects on the value of the Notes and the impact thisinvestment will have on the potential investor's overall investment portfolio.Currency Risk / Dual Currency NotesA holder of a Note denominated in a foreign currency and a holder of Dual Currency Notes is exposedto the risk of changes in currency exchange rates which may affect the yield of such Notes.Liquidity RiskThere can be no assurance that a liquid secondary market for the Notes will develop or, if it doesdevelop, that it will continue. In an illiquid market, an investor might not be able to sell his Notes at anytime at fair market prices.Risk of Early RedemptionIf the Issuer has the right to redeem the Notes prior to maturity, a holder of such Notes is exposed tothe risk that due to early redemption his investment will have a lower than expected yield. Also, theholder may only be able to reinvest on less favourable conditions as compared to the originalinvestment.Fixed Rate NotesA holder of a Fixed Rate Note is exposed to the risk that the price of such Note falls as a result ofchanges in the market interest rate.Floating Rate NotesA holder of a Floating Rate Note is exposed to the risk of fluctuating interest rate levels and uncertaininterest income. Fluctuating interest rate levels make it impossible to determine the profitability ofFloating Rate Notes.Zero Coupon NotesA holder of a Zero Coupon Note is exposed to the risk that the price of such Note falls as a result ofchanges in the market interest rate. Prices of Zero Coupon Notes are more volatile than prices ofFixed Rate Notes and are likely to respond to a greater degree to market interest rate changes thaninterest bearing notes with a similar maturity.Index-linked NotesA holder of Index-linked Notes is exposed to the risk of fluctuating interest rate levels which makes itimpossible to determine the yield of Index-linked Notes in advance. The more volatile the relevantindex is, the greater is the uncertainty in respect of interest income.Structured NotesAn investment in Note(s) the premium and/or the interest on which is determined by reference to oneor more values of currencies, commodities, interest rates or other indices or formulae, either directly orinversely, may entail significant risks not associated with similar investments in a conventional debtsecurity, including the risks that the resulting interest rate will be less than that payable on aconventional debt security at the same time.12