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Mariana launch the UK’s first true ESG Structured Product for investment

  • Wednesday, February 17, 2021
ESG Structured Product

INVESTMENT NEWS

Mariana launch the UK’s first true ESG Structured Product for investment
ESG Structured Product
 

We are delighted to share with you details of the first true ESG Structured Product launched in the UK in conjunction with Mariana working alongside Credit Agricole as the chosen Counterparty.

Structured Products linked to ESG Indexes are quite common in Europe, but not in the UK. When Mariana looked at these products they found that when you investigate the mechanics, investors are gaining exposure to the performance of these Indices but not really investing ethically which is what is now going to change.

To achieve this they are making one simple amendment to how Structured Products are made by replacing the normal Bank Bond which is a significant part of a Structured Product with a Bank Issued Green Bond. Green Bonds have been created to exclusively fund projects that have positive Environmental &/or Climate benefits.

With this small change they can get investors 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.

Below are the headline details of this Autocall Product. Please see the brochure for full information. Pages 14 -16 contain full information on both the chosen Index & the Counterparty for the underlying Bond.

Mariana – ESG Green Bond Kick Out Plan
Underlying: MSCI Europe Green Select 50
(3.5% decrement)
Counterparty: Credit Agricole S&P A+ negative
(Green Bond Issuance)
Term: Minimum of 1 year & Maximum of 6 Years
Structure: Kick Out
Kick Out Levels: 100% reference level
Years 1 – 6
Protection Barrier: 65% European
Strike date: 30/03/2021
Coupon: 7.25% per annum

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. In 2020, Credit Agricole Group generated a Net Income of €5,573m and had a Common Equity Tier 1 Capital Ratio of 17.2%. 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, Q4 2020 results.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.

Credit Agricole CIB acts as Guarantor of the securities issued by Credit Agricole CIB FS, which means that Credit Agricole CIB will make the payments under the securities if Credit Agricole CIB FS is unable to fulfil its payment obligations.

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 FS and 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.
ESG Structured Product
ESG Structured Product
Mariana ESG Green Bond Kick Out Plan (Europe) – March 2021

This is a six year, two week Plan based on the performance of the MSCI Europe Select Green 50 3.5% Decrement Index®, the Underlying Asset. The Plan is constructed to offer a Potential Return of 7.25% 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 first year and annually thereafter. The Potential Return is only payable if the Plan kicks out.  This plan is only available on an Advised basis.

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 first anniversary date and continue on an annual basis until the Plan’s Maturity Date (from 30 March 2021 to 30 March 2027).  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 (30 March 2027) 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 Kick Out Plan (Europe) – March 2021
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.

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 liquid or counterparty 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.