Raiffeisen Naturally The blog

The emergence of a significant international event such as a new pandemic, a war or a climate event and measures taken by governments of countries in response to it are all beyond the reasonable control of the Issuer and adversely affect the Issuer.

The profitability of the Issuer’s businesses could be adversely affected by a worsening of general economic conditions in its markets, as well as related factors, including governmental policies and initiatives.

While the Issuer believes it is positioned to compete effectively with local and international banking and non-banking competitors, there can be no assurance that increased competition will not adversely affect the Issuer in one or more of the markets in which it operates.

The Issuer’s business activities are subject to substantial regulation and regulatory oversight and the nature and impact of future changes in applicable policies are not predictable, are beyond the Issuer’s control and could have an adverse effect on the Issuer’s business and results of operations.

Insufficient liquidity could have a material adverse effect on the Issuer’s solvency and its ability to make payments under the Notes.

The Notes may be early redeemed in certain circumstances. The fact the Issuer has the right to redeem any Notes at its option may limit the market value of the Notes concerned and an investor may not be able to reinvest the redemption proceeds to achieve a similar effective return.

The Notes do not benefit from any guarantee or protection from any deposit guarantee scheme in Luxembourg. Accordingly, investors in the Notes need to be aware that they will not be able to claim for any compensation from any deposit guarantee scheme in the event of unavailability of the Notes (or the payments thereunder).

There may be no or only a limited secondary market in the Notes and this could adversely affect the value at which an investor could sell his Notes.

The value of an investor’s investment may be adversely affected by exchange rate movements where the Notes are not denominated in the investor’s own currency.

The Issuer’s obligations under the Notes will be unsecured and subordinated and will rank junior in priority of payment to the claims of the senior creditors of the Issuer. There is a risk that an investor in the Notes could lose all or some of his investment should the Issuer become insolvent.

The sole remedy against the Issuer available to any Noteholder for recovery of amounts which have become due in respect of the Notes will be claiming during the liquidation proceedings of the Issuer.

If the Issuer is failing or likely to fail, there is no reasonable prospect that any alternative private sector measures would prevent the failure of the Issuer within a reasonable timeframe and a resolution action is necessary in the public interest, resolution tools and resolution powers could be applied to the Issuer. These include, among others, the power to sell or merge the business operations or parts of the individual business units with another bank, the power to convert liabilities under the Notes into equity of the Issuer or another legal entity or to permanently reduce their principal amount to potentially zero or the power to amend the terms and conditions of the Notes.

In the event of a liquidation or bankruptcy of the Issuer, the Issuer will, inter alia, be required to pay subordinated creditors of the Issuer, whose claims arise from liabilities that no longer fully or partially are recognised as an own funds instrument in full before it can make any payments on the Notes qualifying as own funds of the Issuer.