ORB Choice / About

Investors should read the product disclosure statement in full including the section on risks prior to investing in this product.

ORBITS provide three financial products offering investors a choice between income and capital growth with a 100% capital guarantee¹ (i.e. at the Expiry Date or upon the occurrence of a Downside Protection Event or a Coupon Barrier Event).

What are ORBITS?

ORBITS offer investors a choice of three financial products which have coupons linked to the performance of a portfolio of either international or Australian securities. ORBITS are a new type of security that have a minimum return, potential additional upside, and a capital guarantee for Investors at the Expiry Date, or in the event of a Downside Protection Event or a Coupon Barrier Event. The three series of securities are collectively known as ORB Investment Traded Securities ("ORBITS"):

• International Income ORBITS ("International Income"): are designed to pay an annual minimum coupon and the potential for an increased annual coupon linked to a portfolio of historically high yielding international blue chip securities;
• Australian Income ORBITS ("Australian Income"): are designed to pay an annual minimum coupon and the potential for an increased annual coupon linked to a portfolio of historically high yielding Australian blue chip securities; and
• International Growth ORBITS ("International Growth"): are designed to pay an annual fixed coupon and the potential for a bonus coupon payable on Expiry linked to a portfolio of historically high yielding international blue chip securities.

Each series of ORBITS generates returns through the performances of the securities in the relevant Reference Portfolio, subject to the conditions that (1) the performance of each security is measured on a quarter-on-quarter basis, and (2) the performance of each security is capped each quarter at a pre-determined cap level.

International Income

International Income provides investment exposure to a portfolio of 30 international securities selected from the largest entities in the world by market capitalisation. International Income pays a Minimum Coupon of 3.75% (of the Issue Price) per year. This Coupon can be increased if the sum of the average performances of the securities in the Reference Portfolio in each quarter of the relevant year is greater than 3.75%. The amount by which the Coupon can increase in capped, and only performance up to such cap level will be taken into account. Any performance above the cap will be disregarded. The Issuer will fix this cap, the Income Percentage Cap, on the Start Date.

Australian Income

Australian Income provides investment exposure to a portfolio of 30 Australian securities selected from the largest entities in Australia by market capitalisation. Australian Income pays a Minimum Coupon of 3.75% (of the Issue Price) per year. This Coupon can be increased if the sum of the average performance of the securities in the Reference Portfolio in each quarter for the relevant year is greater than 3.75%. The amount by which the Coupon can increase is capped, and only performance up to such cap level will be taken into account. Any performance above the cap will be disregarded. The Issuer will fix this cap, the Income Percentage Cap, on the Start Date.

International Growth

International Growth provides investment exposure to the same portfolio of 30 international securities as International Income. International Growth pays a Fixed Coupon of 3.25% (of Issue Price) per year plus a potential Bonus Coupon at Expiry equal to the sum of the average of the performances of the securities in the Reference Portfolio in each quarter over the whole investment term of 6 years.  A quarterly cap level for each security will apply and only performance up to such cap level will be taken into account each quarter. Any performance above the cap will be disregarded. The Issuer will fix this cap, the Growth Percentage Cap, on the Start Date. During the Investment Term, the Lock-In levels provide a profit lock-in feature.

Other features

Each series of ORBITS is capital guaranteed at Expiry. Each series of ORBITS has a downside protection feature. On each anniversary of the expected Start Date, if the market price of each security in the relevant Reference Portfolio has fallen by 15% or more from their respective Initial Prices, then the ORBITS will terminate early and Investors will receive 100% of their initial investment back.

The Reference Portfolio for each series of ORBITS will be re-selected each year in accordance with a selection formula designed to ensure that the Reference Portfolio is comprised of the historically highest yielding stocks from amongst the largest by market capitalisation in the relevant market - international or Australian.

1 The capital guarantee refers to Credit Suisse's obligation (i) to deliver the Deliverable Parcel with a Market Value equal to 100% of the Issue Price on the Expiry Date or (ii) to deliver the cash amount equal to 100% of the Issue Price on the Cash Settlement Date upon the occurrence of a Downside Protection Event or a Coupon Barrier Event.