The Lombard Loan Your Bridge to Financial Flexibility

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1 The Lombard Loan Your Bridge to Financial Flexibility Private Banking Investment Banking Asset Management

2 The Lombard Loan. 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 The Lombard Loan 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 loan-to-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 creditfinanced 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. 1

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 Term Interest due Current Account Lombard Loan variable quarterly Fixed Advance Lombard Loan 1 to 12 months at maturity 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. 2

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. 2 You gain access to a flexible alternative to mortgage financing. You enjoy comprehensive and individually tailored advice from Credit Suisse. 2 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. 3

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 loanto-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. 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: 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. 4

6 This document was produced by Credit Suisse for information purposes only and is for the exclusive use of the recipient. The terms and conditions contained herein are purely indicative and may be subject to change. Credit Suisse provides no guarantee regarding the reliability and completeness of this document, and cannot accept any liability for losses that might arise from its use. This document constitutes neither an offer nor a request to conclude a financial transaction. Neither this document nor copies thereof may be sent to, brought into, or disseminated within the United States or to a US person, nor to any other jurisdiction where such actions would represent a contravention of existing legislation. This document may not be reproduced, either in part or in full, without the written approval of Credit Suisse. 2009, CREDIT SUISSE AG CREDIT SUISSE AG Private Banking Switzerland Paradeplatz 8 CH-8070 Zurich Switzerland SOLS