European Capital Protected Note — 2-Year

How This Note Works

This capital protected structured note provides full return of invested capital at maturity — regardless of the performance of the underlying index — alongside a participation in the upside of the EuroStoxx 50 Index over a 24-month term.

Capital Protection Mechanism

The 100% capital protection is built into the structure at issuance. The issuing bank uses a proportion of the invested capital to purchase a zero-coupon bond that will return the full principal at maturity regardless of market conditions. The remaining capital is deployed into a call option on the EuroStoxx 50, providing the upside participation. The balance between these two components — determined by prevailing interest rates and option pricing at inception — defines the participation rate and cap.

As of issuance, with European interest rates elevated relative to the 2010-2020 era, the economics of capital protected notes are considerably more attractive than they were in the low-rate environment. The zero-coupon bond component requires less capital to guarantee return of principal, leaving more for the option component — translating into a higher participation rate and cap than would have been achievable in 2018-2021.

Return Profile

If the EuroStoxx 50 Index rises by more than 10% over the 24-month term, investors receive their capital plus a conditional return. The maximum return is capped at 24% over the full term (equivalent to approximately 11.4% per annum on a compound basis). If the index rises by less than 10%, or falls by any amount, investors receive their full capital back with no additional return.

The 24-month term is fixed. There is no early redemption mechanism and no observation dates — the return is determined solely at the single maturity date.

Issuer Credit Risk

Capital protection is a contractual obligation of the issuing bank — not a guarantee backed by the EU or any government deposit scheme. The protection is only as strong as the financial health of the issuer. This note is issued by an A-rated European bank with total assets in excess of €800 billion. Nevertheless, investors should understand that issuer insolvency would put both capital and any accrued return at risk. Holding capital protected notes from more than one issuer mitigates this concentration risk.

Tax Considerations

In many EU jurisdictions, returns from capital protected structured notes are treated as capital gains rather than income, potentially attracting a lower rate than interest income or dividends. However, tax treatment varies significantly by country of residence and individual circumstances. Investors resident in countries with participation exemptions or territorial tax systems may face different treatment. Independent tax advice in your jurisdiction of residence is strongly recommended before investing.

Suitability

This note is suitable for investors who: are seeking to preserve capital in full while maintaining some participation in equity market gains; have a minimum 24-month investment horizon; are EUR-denominated investors or are comfortable with EUR currency exposure; want a simpler, single-observation-date structure rather than an autocall note with multiple observation dates.

This note is not suitable for investors who: require regular income from their investment; need access to their capital within 24 months; have no tolerance for issuer credit risk; or are seeking returns that can exceed 24% over the term.

How to Invest via Global Investments

To receive the full product term sheet, key information document (KID), issuer credit information, and application documentation for this note, contact our investment team. We will confirm current pricing, minimum subscription details, and issue date. Capital protected notes of this type are available to both retail and sophisticated investors, subject to applicable suitability assessments and jurisdiction-specific regulatory requirements.

Important: The capital protection applies only at maturity. If you sell or redeem the note before the 24-month maturity date, you may receive less than your invested capital depending on market conditions at the time of early redemption. This note is designed to be held to maturity.