Overview
Strategic Yielding Notes pay regular, monthly income to investors for the entire investment term with the opportunity to buy the Reference Asset at a discount to the price it was trading on the Commencement Date at Maturity. Strategic Yielding Notes may suit investors that would prefer to be invested in the Reference Asset, but fear it will pull back during the Investment Term.
Description
Bitcoin, the first decentralised cryptocurrency, has revolutionised the financial world since its inception in 2009. It has sparked a wave of innovation in digital currencies and blockchain technology, fundamentally altering the way people think about money, transactions, and the global financial system.
At the core of Bitcoin's innovation is blockchain technology. A blockchain is a distributed ledger that records all transactions across a network of computers. Each block contains a list of transactions, and once a block is completed, it is added to the chain in a linear, chronological order. This structure ensures the integrity and security of the data, as altering any information on the blockchain would require the consensus of the entire network.
Bitcoin's performance has been characterised by significant growth, volatility, and increasing mainstream recognition. Its value is influenced by a complex interplay of market dynamics, regulatory developments, technological advancements, institutional adoption, macroeconomic trends, and public perception.
Strategic Yielding Notes
For investors that would prefer to be invested in Bitcoin need to decide if they invest now and risk a near term pullback or wait on the sidelines and risk missing out on further gains.
Strategic Yielding Notes offer the best of both worlds, a high yielding note that pays regular income and only converts to equity if the Reference Asset falls below the Strike Price at the end of the Investment Term. If the Reference Asset is trading above the Strike Price at Maturity, investors receive their principal investment back.
We're pleased to present investors with a series of Strategic Yielding Notes that are linked to Bitcoin. Investors will receive a fixed coupon*, which is paid monthly during the Investment Term. At Maturity, investors either receive their Principal Investment back as cash*, or their Principal Investment will be used to buy units in the Monochrome Bitcoin ETF (IBTC) at the Strike if Bitcoin is trading below the Strike at Maturity.
| Fixed Coupon | 12% per annum (paid monthly) |
| Underlying Asset | BTCUSD |
| Strike Price | 90% |
| Investment Term | 12 months |
| Settlement Currency | US Dollars (USD) |
There is also the possibility of early maturity memory feature – if Bitcoin is trading higher than its Initial Price on any of the Observation Dates, the investment will Mature early – investors will keep all Coupon payments they received between the Commencement Date and the early Maturity Date, plus they will receive their Principal Investment back as cash*.
This investment may suit investors that would prefer to be invested in Bitcoin, but fear the market will fall during the investment term. This investment provides regular, monthly income* until Maturity, regardless of how volatile the Underlying Stocks are performing.
*This investment settles in US Dollars.
*Investors may choose to invest in USD or AUD – investors that choose to invest in AUD will be exposed to currency risk – any changes between AUD and USD will have an impact on returns.
*Please consult your Adviser before deciding to invest in this product.
| Feature | Monochrome Strategic Yielding Note |
|---|---|
| Reference Asset | Bitcoin (BTCUSD) |
| Fixed Coupon | 12% per annum (paid monthly) |
| Strike Price | 90% |
| Memory Feature | Yes – if BTC is trading higher on an Observation Date, this investment will mature early |
| Minimum Investment Term | 6 Months |
| Maximum Investment Term | 12 Months |
| Settlement Currency | US Dollars (USD) |
| Minimum Investment Amount | 50,000 Units at an Issue Price of US$1.00 per Unit |
Performance
| Date | Coupon Paid |
|---|---|
| TBC | N/A |
| TBC | N/A |
Key Dates
| Event | Date |
|---|---|
| Open Date | 3 February 2025 |
| Close Date | 20 February 2025 |
| Funds Due Date | 20 February 2025 |
| Commencement Date | 1 March 2025 or as soon as reasonably practicable |
| Observation Date | 30 September 2025 |
| Maturity Date | 28 February 2026 |
Offer Documents
This offer is for Wholesale Investors Only.
Investors interested in this investment must read the Term Sheet IM in full before investing. Any advice given is general in nature only and does not consider your personal needs or objectives. Please consult your advisor before investing.
This investment is only available to Wholesale Investors. You will be required to provide a copy of your Wholesale Investor Certificate before your application is accepted. If you are not a Wholesale Investor, please do not apply for Units in this investment.
*Investors without an existing Anadara account that use the online application form will be required to verify their ID electronically using Green ID, and to upload a copy of their Wholesale Investor Certificate. If you have completed the ID process and verified your Wholesale Investor Status with Anadara within the last 18 months, you will not be required to verify again.
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