The Lombard Loan Your Bridge to Financial Flexibility

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1 Your Bridge to Financial Flexibility

2 An Attractive and Flexible Financing Opportunity for You Are you in need of liquidity? Or would you like to exploit an investment opportunity without selling your existing assets? With a lombard loan, tailored to your personal needs, you increase your financial flexibility. For example, it provides a quick and simple way of bridging any personal or business liquidity shortages. Alternatively, you can use the lombard loan to invest in potentially exciting opportunities without touching your existing securities portfolio. In addition, lombard loans are extremely straightforward, and the type, amount, timeframe, and currency can be defined according to your wishes. So Easy Lombard loans can be approved swiftly and simply against a pledge of assets that can easily be converted into liquidity such as equities, bonds, and select life insurance policies with a surrender value. You can borrow against the deposited assets up to a certain percentage of their market value. The applicable loanto-value ratio will depend on the type, currency, quality, volatility, and tradability of the securities in question, as well as on the diversification of your portfolio, and will be reviewed at regular intervals. The Right Solution for You in Different Situations A lombard loan might be the right solution for you in a variety of situations: You need liquidity and want to stick to your existing investment strategy You would like to optimize your current securities portfolio by securing additional capital (diversification or leverage financing) You are anticipating investment opportunities arising in the near future, and would like to put the necessary liquidity in place now You see the potential for tax optimization through credit-financed investments 1 1 The key factors here are your tax domicile and your individual tax assessment. Please discuss the possibilities available to you with your client or tax advisor. 2/6

3 Structure the Lombard Loan the Way You Want Do you value maximum flexibility? Or do you have regular capital requirements? Select the type of loan that best meets your needs. Current Account Lombard Loan Flexible credit amount with variable term and quarterly interest payment dates The credit limit corresponds to the maximum loan-to-value level that is applied to your assets. The minimum credit amount is CHF 30,000. Interest is only payable on the actual amount you use. The interest rate is variable and is based on prevailing money and capital market conditions. Commission will be payable on the loan The lombard loan can be granted to you in a number of different currencies Fixed Advance Lombard Loan Loan with a fixed credit amount, fixed term, and fixed rate of interest The credit limit corresponds to the maximum loan-to-value level that applies to your assets. The minimum credit amount is CHF 100,000. The interest rate is fixed for the term in question, and is based on prevailing money and capital market conditions No loan commission is levied The lombard loan can be granted to you in a number of different currencies Your Terms and Conditions for Lombard Loans with Credit Suisse Switzerland Current Account Lombard Loan Fixed Advance Lombard Loan Term variable 1 to 12 months Interest quarterly at maturity due Minimum amount (CHF) 30, ,000 Interest rate 1 Loan commission 1 based on prevailing money and capital market conditions commission will be payable on the loan fixed for the term of the loan, based on prevailing money and capital market conditions none Currencies CHF, USD, EUR, JPY, GBP, CAD, SEK, NOK, DKK, AUD, NZD, HKD, SGD 1 Your client advisor will be pleased to discuss the current terms and conditions with you. Note: A lombard loan limit can also be used to cover over-the-counter and traded options and financial futures transactions, as well as letters of credit and guarantees. Furthermore, different credit products (current accounts, fixed advances, over-the-counter limits, traded options and financial futures transactions, letters of credit, guarantees) can be combined within a single credit limit. It should be remembered that the total outstanding credit amounts must not exceed the maximum applicable loan-to-value ratio applied to the assets in question. 3/6

4 Your Benefits at a Glance You obtain additional capital without having to sell your existing securities holdings You continue to enjoy the capital appreciation and income potential of your securities You may alter the structure of your portfolio at any time. The credit limit assigned to you will be adjusted accordingly. With our assistance, you may structure the loan according to your individual needs with respect to type, amount, timeframe, and currency You may use the interest paid to optimize your tax burden 1 You gain access to a flexible alternative to mortgage financing You enjoy comprehensive and individually tailored advice from Credit Suisse 1 The key factors here are your tax domicile and your individual tax assessment. Please discuss the possibilities available to you with your client or tax advisor. 4/6

5 Risks That You Should Be Aware of The loan-to-value ratios will be applied to the securities in question when the loan is granted and they will be reviewed at regular intervals. If the assets held in your safekeeping account decline in value, and/or Credit Suisse adjusts the corresponding loan-to-value ratios, you will either have to provide additional assets as collateral, or reduce the outstanding loan by the applicable amount. If you do not meet these liabilities on time, Credit Suisse is entitled to alter the structure of your portfolio or to liquidate the assets deposited as collateral. We recommend that you obtain detailed advice to ensure that your desired borrowing requirements meet your investment objectives, and that the solution you select corresponds to your needs. Do Not Hesitate to Contact Us. Are you interested? Would you like to know more about the lombard loan opportunities available for your safekeeping account? Your client advisor will be happy to help, or you can call us at: /6

6 CREDIT SUISSE (Switzerland) Ltd. P.O. Box CH-8070 Zurich credit-suisse.com The information provided herein constitutes marketing material. It is not investment advice or otherwise based on a consideration of the personal circumstances of the addressee nor is it the result of objective or independent research. The information provided herein is not legally binding and it does not constitute an offer or invitation to enter into any type of financial transaction. The information provided herein was produced by Credit Suisse Group AG and/or its affiliates (hereafter CS ) with the greatest of care and to the best of its knowledge and belief. The information and views expressed herein are those of CS at the time of writing and are subject to change at any time without notice. They are derived from sources believed to be reliable. CS provides no guarantee with regard to the content and completeness of the information and does not accept any liability for losses that might arise from making use of the information. If nothing is indicated to the contrary, all figures are unaudited. The information provided herein is for the exclusive use of the recipient. Neither this information nor any copy thereof may be sent, taken into or distributed in the United States or to any U. S. person (within the meaning of Regulation S under the US Securities Act of 1933, as amended). It may not be reproduced, neither in part nor in full, without the written permission of CS. Copyright 2016 Credit Suisse Group AG and/or its affiliates. All rights reserved. SNSC /6