More information regarding reference obligation by each reference entities: (Extracted from the Pricing Statement)
Reference Entities: - People's Republic of China Ranking: Senior Issue Date: 23 May 2001 Maturity Date: 23 May 2011 Coupon: 6.8% per annum Currency: US$ ISIN: XS0129936331 Moody's/S&P/Fitch Credit Rating: A2/A/A
- Republic of Korea Ranking: Senior Issue Date: 3 June 2003 Maturity Date: 3 June 2013 Coupon: 4.25% per annum Currency: US$ ISIN: US50064FAC86 Moody's/S&P/Fitch Credit Rating: A3/A/A+
- Malaysia Ranking: Senior Issue Date: 9 July 2001 Maturity Date: 15 July 2011 Coupon: 7.5% per annum Currency: US$ ISIN: US560904AF11 Moody's/S&P/Fitch Credit Rating: A3/A-/A-
- Bank of China Limited Ranking: Senior Issue Date: 16 March 1994 Maturity Date: 15 March 2014 Coupon: 8.25% per annum Currency: US$ ISIN: US061194AB21 Moody's/S&P/Fitch Credit Rating: A2/BBB+/None
- The Korea Development Bank Ranking: Senior Issue Date: 10 Sep 2003 Maturity Date: 10 Sep 2013 Coupon: 5.75% per annum Currency: US$ ISIN: US50063BG24 Moody's/S&P/Fitch Credit Rating: A3/A/A+
- Malayan Banking Berhad Ranking: Subordinated Issue Date: 6 June 2002 Maturity Date: 6 June 2012 Coupon: 6.125% per annum Currency: US$ ISIN: XS0148980344 Moody's/S&P/Fitch Credit Rating: Baa1/None/BBB+
- DBS Bank Limited Ranking: Subordinated Issue Date: 15 May 2001 Maturity Date: 15 May 2011 Coupon: 7.125% per annum Currency: US$ ISIN: USY20337AJ30 Moody's/S&P/Fitch Credit Rating: Aa3/A/None
Offer Period: 9 Oct to 3 Nov 06 (subject to extension or early closure)
Note Type: First-to-Default Note Type Principal Amount: USD Tranche A (USD5000) SGD Tranche B (USD 5000)
Issue Price: 100% of principal amount Scheduled Maturity Date: 16 May 2012
Interest: USD Tranche A (6.00% per annum) SGD Tranche B (5.25% per annum). Interest shall be payable semi-annally on 16 May and 16 Nov in each year. The first interest payment date shall be 16 May 2007
Redemption of Principal Amount on the Scheduled Maturity Date: Redemption at 100% of the principal amount on the schedulated maturity date (unless notice of the occurrence of a Credit Event is give, a Mandatory redemption Event or an Event of Default occurs or the Issuer exercises its Issuer Call Option).
The Notes are not principal guaranteeed: Repayment of 100% of the principal amount at maturity is dependent upon, amognst other things, whether any reference Entity suffers a Credit Event or whether a Mandatory Redemption Event occurs. In any such circumstances, you could lose all or substantially all of your investment in the Notes.
Mandatory Redemption Events: Events which relate to a deterioration in the creditworthiness of the Underlying Assets, such as a payment default, a write-down of the outstanding principal amount or an early redemption below par, or evnts which affect the structure, such as a termination of the swap arrangements relating to the Notes or the imposition of withholding tax on any payments recievable by the Issuer. Detailed definitions are set out in the Prospectus.
Reference Entities: - People's Republic of China - Republic of Korea - Malaysia - Bank of China Limited - The Korea Development Bank - Malayan Banking Berhad - DBS Bank Limited
Credit Events: A Bankruptcy, Failure to Payu, Restructuring or Repudiation/Moratorium (as appropriate), occurring with respect to any Reference Entity. Detailed defintions are set out in the Prospectus.
Collateral/Security: The Notes will be secured by, amongst other assets, (i) Underlying Assets which may include AA-rated or higher rated US Dollar denominated portfolio credit-linked securities (i.e. synthetic CDO Securities), and (ii) the Swap Arrangements.
Event of Default: Failure by the Issuer to comply with its obligations relating to the Notes, events relating to the Notes, events relating to the bankruptcy or reorganisation of the Issuer (whether initiated by itself or otherwise) or an event of default (howsoever described) occurring with respect to the Underlying Assets.
Swap Arrangements: To enable the Issuer to meet its payment obligations under the Notes, the Issuer will enter into an asset swap transaction and a credit default swap transaction with Morgan Stanley Capital Services Inc. as Swap Counterparty. The obligations of the Swap Counterparty will be guaranteed by Morgan Stanley as Swap Guarantor. However, the Notes will not be obligations of and will not be guaranteed by either the Swap Counterparty or the Swap Guarantor.
Issuer Call Option: The Issuer may redeem both Trances or either Tranche of the Notes (in whole but not in part) at any time after 15 May 2007, by giving not less than 5 Business Days notice, at 100% of the principal amount plus accured interest up to the relevant date fixed for redemption.
For more information, please refer to the Base Prospectus and Pricing Statment that can be obtained from Distributors. Distributors include Hong Leong Finance Limited, UOB Kay Hian Pte Ltd, RHB Bank Berhad.
