Prospectus Supplement for Index Linked Notes
The return on the Notes may be lower than the return on other debt securities of comparable maturity
The return on the Notes, which could be negative, may be less than the return that could be earned on other
investments, including traditional interest-bearing debt securities of the Bank with the same term to
maturity as the Notes. Unlike traditional interest-bearing debt securities, subject to any minimum principal
repayment and as otherwise may be specified in the relevant pricing supplement, the Notes do not
guarantee the return of a principal amount on their maturity date.
Principal protection on the Notes depends on the creditworthiness of the Bank and does not apply to
sales in the secondary market
In respect of any partially principal protected Note, such principal protection applies only where the Notes
are held to maturity and not if a purchaser chooses to sell the Notes in any secondary market prior to
maturity. The ability to receive principal protection on the Notes depends on the creditworthiness of the
Bank. The Notes, however, have not been and will not be specifically rated by any rating agency. There can
be no assurance that if the Notes were specifically rated by these rating agencies that the Notes would have
the same rating as the Bank's unsecured and unsubordinated obligations with a term to maturity of one
year or more. A rating is not a recommendation to buy, sell or hold investments, and may be subject to
revision or withdrawal at any time by the relevant rating agency. See "Business of the Bank” and
"Secondary Market for Notes" in the Prospectus.
Uncertain return until maturity or early redemption
The return on the Notes will be uncertain until maturity or early redemption. Whether there is a return on
the Notes will depend on the performance of the Index or Indices and the amount of any principal
repayments (subject to the minimum principal repayment as may be specified in the applicable pricing
supplement) or other payments on the Notes over the term of the Notes (as specified in the applicable
pricing supplement). There can be no assurance that the Notes will generate a positive return or that the
objectives of the Notes will be achieved. Depending on the performance of the Index or Indices and the
amount of any principal repayments (subject to the minimum principal repayment as may be specified in
the applicable pricing supplement) or other payments on the Notes over the term of the Notes (as specified
in the applicable pricing supplement), an investor could lose substantially all of his or her investment in
the Notes (subject to the minimum principal repayment as may be specified in the applicable pricing
supplement). Investors should understand that the risks associated with this type of investment are greater
than that normally associated with other types of investments and the Notes are only appropriate for
investors who understand the risks associated with structured products and derivatives.
Owning the Notes is not the same as owning the underlying interests or a security directly linked to the
performance of an Index or Indices
The return on the Notes will not reflect the return an investor would realize on an investment directly in
the underlying interests comprising the Index or Indices or a security directly linked to the performance of
the Index or Indices held for a similar period because:
the amount payable on the Notes may be subject to an upper limit or a cap;
the return on the Notes may be subject to a participation rate which may reduce the return on the
Notes;
•
the return on the Notes may be reduced by an amount attributed to withholding taxes on dividends
or other distributions paid on the underlying interests; and
•
Index levels may not reflect the value of any dividends, distributions or other income or amounts
paid on the underlying interests.
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