2005 Media Releases

May 23, 2005

Deutsche arranges launch of Nexus4 Topaz Notes for retail investors

Australian retail investors are offered a new investment opportunity with Nexus4 Topaz Notes, the next-generation investment product from Nexus Bonds Limited which has been arranged by Deutsche Bank and launched today. 

Nexus4 Topaz Notes, a managed collateralised debt obligation (CDO), are an investment where interest payable is linked to the creditworthiness of a portfolio of 120 companies which is managed by Sociétié Générale Asset Management Alternative Investments S.A.  Deutsche Bank has guaranteed the repayment of the principal amount of Nexus4 Topaz Notes at maturity.  Nexus4 Topaz Notes will be listed on the Australian Stock Exchange.   Grange Securities Limited is acting as lead manager to the offer.

“Deutsche Bank believes Nexus4 Topaz Notes provide an opportunity for retail investors to earn a risk-adjusted interest rate which incorporates a floating credit margin, while still providing investors the comfort of a capital guarantee,” said Paul Banks, Head of Retail Distribution, Deutsche Bank Australia.

The offer of Nexus4 Topaz Notes, as with the previous Nexus offerings, continues to take advantage of Deutsche Bank’s global reach and extensive experience in arranging innovative investment opportunities, including CDO investment products. Deutsche Bank currently holds International Financing Review magazine’s ‘Credit Derivatives House of the Year’ (2004) award.

Interest payable for the first interest period from the issue date to 20 November 2005 is based on the 180 day bank bill rate plus 2.60% per annum. For example, if on the issue date the 180 day bank bill rate is 5.70% per annum, interest payable for this initial interest period will be based on an interest rate of 8.30% per annum.  Thereafter interest is payable based on a floating interest rate which reflects changes in the credit market’s view of companies in the portfolio as well as changes in market interest rates. The amount of interest payable will be reduced if portfolio companies suffer credit events or net trading losses result from a portfolio composition change.

Nexus4 Topaz Notes is expected to carry a AA-p N.R.i rating by Standard & Poor’s on the issue date, which represents a AA- rating on the repayment at maturity of principal invested and no rating on the payment of interest.
 
Nexus intends to issue up to 500,000 Nexus4 Topaz Notes at $100 each to raise $50 million. The minimum investment for retail investors is $5,000. Nexus will also be able to meet oversubscriptions. Nexus was established in 2002 and was the issuer of the first listed CDO on the Australian Stock Exchange. Nexus has issued three ASX listed CDO investment products.

For further information contact:

Kate Abrahams 9258 2416
Paul Banks 9258 3628



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