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Mariana launch third tranche of their ESG Structured Product for investment

  • Wednesday, January 26, 2022
ESG

INVESTMENT NEWS

Mariana launch third tranche of their ESG Structured Product for investment 
ESG
Mariana have just released their third tranche of the first true ESG Structured Product launched in the UK working alongside Credit Agricole as the chosen Counterparty.  The Contract is written as an Autocall which is the most popular/dominant shape in the UK.

Structured Products linked to ESG Indexes are quite common in Europe, but not so in the UK. However, when you look at these products and investigate the mechanics, investors are gaining exposure to the performance of these Indices but not really investing ethically which is what has now been changed.

This was achieved by just one simple amendment to how Structured Products are constructed.  The normal Bank Bond, which is a significant part of a Structured Product, has been replaced with a Bank Issued Green Bond.  Green Bonds have been created to exclusively fund projects that have positive Environmental and/or Climate benefits.

With this small change you can now get true exposure to ESG focused or ethical Indices while at the same time ensuring that the funds invested are used for Green Projects. The Green Bond is issued out of Credit Agricole directly so in terms of credit risk it is treated in the same way as any other Credit Agricole Structured Product.

Please find detailed below the headline details of this Autocall Product.  Please refer to the Brochure and KID for full information.  Pages 14 -16 of the brochure contains full information on both the chosen Index & the Counterparty for the underlying Bond.

Combined with great potential returns, Structured Investments like this allow you to put to one side current media commentary/market nerves & focus on the pre-defined outcomes offered to Investors going forward.  Couple this with the fact that you can complete the whole investment process very simply. There is no need for wet signatures, you can complete each investment with email & scanned documentation plus online Banking.

Please note that for any ISA Transfer cases original wet signature paperwork may still required by many ISA Providers which is outside the control of Mariana and James Brearley (the administrators); the paperwork for these cases needs to be received by the 9 February 2022.

We believe the overall Product design coupled with the current market environment make this a compelling and powerful diversification tool for many Investors’ investment strategies.


As always, we would remind you that this is a limited offer and if you are interested in the Plan we would encourage early action to take advantage of these attractive terms.

About Credit Agricole: Credit Agricole CIB is a subsidiary of Credit Agricole SA, part of the Credit Agricole Group.

Credit Agricole Group, sometimes referred as “the green bank” due to its focus on sustainability and roots in farming, is a major banking group dating back over 125 years. The Group’s 142,000 employees last year served 51 million customers across 47 countries through it’s 4 key business lines: Retail Banking, Asset Gathering, Specialised Financial Services and Large Customers.. The Group is listed on Euronext Paris via Credit Agricole SA which is a constituent of the CAC 40 Index.

Source: www.credit-agricole.com.

More information on Credit Agricole CIB can be found on their website https://www.credit-agricole.com/en or by requesting a copy of their prospectus from Mariana. The prospectus contains information and contractual terms for the securities issued by Credit Agricole CIB. You may lose part and up to all your investment if Credit Agricole CIB goes into liquidation and defaults on paying your Plan return and the repayment of your Initial Capital. The risk that Credit Agricole CIB goes into liquidation is called Counterparty Risk. Securities issued by Credit Agricole CIB are not covered by the Financial Services Compensation Scheme (FSCS). Therefore if the Issuer and/or the Guarantor become insolvent you would not be covered by the FSCS.

The Plan is not endorsed, sponsored or otherwise promoted by Credit Agricole CIB or any of its affiliates. None of Credit Agricole CIB or its affiliates are responsible for the contents of this brochure and nothing in this document should be considered a representation or warranty by Credit Agricole CIB to any person regarding whether investing in the product is suitable or advisable for such a person. Neither Credit Agricole CIB, nor any of its affiliates, has provided advice, nor made any recommendation about investments or tax in relation to this product.
Mariana ESG Green Bond UK Kick Out Plan – March 2022
This is an eight-year, one-week Plan based on the performance of the MSCI United Kingdom Sustainable Select 50 5% decrement Index®, the Underlying Asset. The Plan is constructed to offer a Potential Return of 7.5% for each year the Plan runs with the possibility of early maturity and the full repayment of Initial Capital from the end of the Plan’s second year and annually thereafter. The Potential Return is only payable if the Plan kicks out.Should the Closing Price of the Underlying Asset on an Observation Date be at or above the Kick Out Trigger Level, the Plan will mature early, repaying your Initial Capital plus the Potential Return multiplied by the number of years the Plan has run.

The Kick Out observations begin on the second anniversary date and continue on an annual basis until the Plan’s Maturity Date (from 04 March 2024 to 04 March 2030).

If the Plan has not already kicked out, Initial Capital will be repaid in full at the end of the Plan’s term if on the Maturity Date (04 March 2030) the Closing Price of the Underlying is not more than 35% below the Start Level.

If on the Maturity Date the Closing Price of the Underlying Asset is less than 65% of the Start Level (representing a decline of more than 35% from the Start Level), your Initial Capital will be lost at a rate of 1% for every 1% the Closing Price of the Underlying Asset is below the Start Level.
Click here for more details on the Mariana ESG Green Bond UK Kick Out Plan – March 2022
Don’t Forget the Risks

As with all forms of investment there are risks involved. These plans do not guarantee to repay the money invested. The potential returns of the plans and repaying the money invested are linked to the level of the stock market and also depend on the financial stability of the Issuer and Counterparty Bank.

Past performance is not a guide to future performance and may not be repeated.  Investment involves risk. The performance data does not take account of the commissions and costs incurred on the issue and redemption of shares. The value of investments and the income from them may go down as well as up and investors may not get back any of the amount originally invested. Because of this, an investor is not certain to make a profit on an investment and may lose money. Exchange rate changes may cause the value of overseas investments to rise or fall.

The promotion of the plans does not constitute ‘advice’ to invest. Advice is always specific to an individual investor’s circumstances and needs, following the process of ‘know your customer’, with the aim of ensuring that any product is suitable for an investor.

As always, the recommendation and common sense approach is to consider product solutions as a portfolio, never over-exposing oneself to a point of financial pain and suffering liquidity or counterparty over exposure.

At the Best Price FS price point the Mariana Plans are certainly worthy of consideration for inclusion within investment portfolios.

Warmest Regards.

Best Price FS Team
Advice: Simply click here to get in touch if you wish to receive regulated advice in relation to the ‘suitability’ of the plans to meet your investment needs.