Generator Income Notes

Summary of the offer

For investors seeking the opportunity to potentially earn higher than the term deposit rate and the highest possible credit rating¹ on the return of their capital at maturity, there is now a new alternative - Generator Income Notes.

Generator Income Notes² offer the following benefits:

• Target income of the Bank Bill Rate plus 2.00% p.a. (ie currently 7.4% p.a.)³
  
• Expected AAA rated backing for the return of your principal at maturity by Standard & Poor's⁴
  
• An experienced and committed manager looking after the underlying portfolios
  
• Potential for an additional amount at maturity
  
• Access to your funds prior to maturity⁵ - expected listing on the Australian Stock Exchange (ASX)
  
• Diversification
  
• Initial Public Offering
  

These dates and times are indicative only, Generator reserves the right to vary the date and times of the Offer, which includes closing the offer early or extending it without prior notice, and to accept late applications.

the prospectus

Generator Income Notes - adviser product flyer  (pdf 108KB)

Generator Income Notes - client flyer  (pdf 55.7KB)

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What are Generator Income Notes?

Generator Income Notes are structured income investments which receive their return and risk from an investment in the Aria Notes. Generator will use the proceeds of issuing Generator Income Notes to purchase Aria Notes from Aria. The Aria Notes are wholesale investments, managed by credit market leaders, AXA Investment Managers Paris S.A.(AXA IM)⁶ and are available only to institutional investors.

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Generator Income Notes can offer the following benefits

Target income of the Bank Bill Rate plus 2% p.a. (i.e. currently 7.4% p.a.)³

This is a floating rate security, meaning that if interest rates in Australia rise or fall, Generator Income Notes' income will rise or fall with them.  Generator Income Notes' offer this higher than "risk-free" rate of return by investing in the corporate debt of approximately 140 companies.  If there are losses in the underlying portfolios, the level of income may fall.

Expected AAA rated backing for the return of your principal at maturity by Standard & Poor's

To put this in context, analysis by the Macquarie Group based on various industry data concluded that this AAA rated backing would have been sufficient to survive the 1930s Great Depression, a global economic crisis the likes of which has never even come close to being repeated⁷.

An experienced and committed manager looking after the underlying investments

Generator has chosen AXA IM⁶ to manage and protect the underlying portfolios from losses.  AXA IM have substantial skills and experience and will manage the underlying portfolios to minimise the risk of falls in the level of the income of this investment.

Potential for an additional amount at maturity

Depending upon credit market conditions and pricing investment, Generator Income Notes may pay an additional amount at maturity (which is expected to be 8 October 2011).  The potential size of this additional amount will be amnnounced following the issue of Generator Income Notes.

Access to your funds prior to maturity - expected listing on the Australian Stock Exchange (ASX)

As Generator Income Notes are expected to list on the ASX, investors will have the opportunity to exit their investment prior to maturity provided there is a liquid secondary market.  This may provide more flexibility than some other income producing investments such as term deposits.

Initial Public Offering

Generator Income Notes provide a unique opportunity for investors seeking capital preservation, but also seeking the opportunity to potentially earn a higher rate of income than from term deposits and similar income producing investments.  Generator Income Notes also offer flexibility and diversification.

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