Term deposit with additional interest linked to oil companies' stock price

The deposit was distributed from 5 September 2016 to 5 October 2016.

On 7 October 2016 the term deposit agreements concluded by the clients entered into force, under the terms and conditions set forth therein.
The additional interest will be payable only upon the occurrence of the additional interest payment terms, when the value of the financial assets (shares of oil companies), to which the term deposit‘s additional interest is linked, determined at maturity date, on 4 October 2019, will be above the minimum percentage required as compared to the starting value recorded in 7 October 2016.
Initial value of the shares of oil companies, to which the term deposit ‘s additional interest is linked,  on 7 October 2016 is:

Please be reminded, that payment of additional interest will depend on changes in financial assets.
* Initial value was updated on 4 April 2019 after the material event: the shares split (for more info see here).

To find the latest prices for the financial assets to which the term deposit is linked, visit www.bloomberg.com:

• STATOIL ASA (STL NO Equity)
• NESTE OIL OYJ (NESTE FH Equity)
• ROYAL DUTCH SHELL PLC-A SHS (RDSA NA Equity)

Much of the world's energy is still derived from fossil fuels, and there are huge unexplored petroleum resources in the depths of the earth. The proven world oil reserves alone are worth $ 85 trillion (at $ 50 a barrel). With US shale oil production declining, it is likely that in 2016 demand for oil will exceed supply. This could lead to further moderate oil price growth and, as oil company values ​​rise, this deposit would make it possible for you to earn as well.

By associating this deposit with stocks of well-known oil companies worldwide and in Lithuania, we want to give you the opportunity to earn extra returns. We present the following companies in more detail:

• STATOIL is a Norwegian oil and gas giant founded in 1972. The company operates in 36 states and employs more than 20,000 employees. The main activities of the company are: oil extraction, refining and distribution of petroleum products, as well as gas extraction and trading;
• NESTE is the largest company in the Finnish oil sector since 1948. The main activities of this company are refining and trading of petroleum products. The company is also active in the production of renewable fuels;
• SHELL (Royal Dutch Shell) is a Dutch and UK based oil and gas company established in 1907. Shell's core business is oil and gas extraction, refining, and retailing of petroleum and gas. The company also operates in the renewable energy sector.

Changes in stock prices can be caused by:

• Oil prices have currently fallen to significantly low levels. This price level has a twofold impact on the oil market. On the one hand, demand for oil is starting to grow and most major oil companies are cutting back on exploration for new oil fields to balance future oil supply. As a result, we believe that the price of oil has the fundamental basis to rise to a higher level. On the other hand, shale oil production in the US and high oil reserves may continue to have a significant impact on oil prices, as can malfunctions in the companies’ operation that may affect corporate performance;
• Economic indicators in the euro area point to a more sustainable economic recovery, boosting consumer confidence and consumption and having a positive impact on companies' performance. However, increased uncertainty in the global economy and economic slowdown in developing countries may lead to stock market value adjustments;
• Economic stimulus measures taken by the world's central banks and governments have a positive effect on stock markets by lowering interest rates, which in turn raise the value of bonds and equities. However, changing investor expectations can negatively impact stock prices on financial markets. It should also be noted that currency price fluctuations may influence stock price movements and corporate performance.

Deposits held with Šiaulių bankas AB are insured by the state enterprise “Deposit and Investment Insurance” under the conditions established by the Law on Insurance of Deposits and Liabilities to Investors of the Republic of Lithuania. For more see.