| When offered: |
Four sale periods during the year |
| Issue date: |
Quarterly (March, June, September, December) |
| Term: |
Five and ten years |
| Limit on yield at maturity: |
Determined for each issue |
| Minimum purchase amount: |
Any amount greater than or equal to $100 |
| Processing of the amount invested: |
The initial purchase amount is invested in a Temporary Investment until the issue date of the Québec Stock Index Bonds. The Temporary Investment bears interest at the rate of one-year Fixed-rate Bonds in effect on the date of receipt of the funds, until the date of issue of the Québec Stock Index Bonds. The interest thus accrued is added to the initial purchase amount to acquire Québec Stock Index Bonds on the date of issue and constitutes the invested capital at issue. |
| Purchase limit: |
Maximum amount held of $20 000 000 for general or limited partnerships and legal persons established for a private interest or in the public interest acting on their own account, except in the case of a transfer resulting from a succession. |
| Yield at maturity: |
Not guaranteed, equal to the IREC Indice Québec IQ‑30™ calculated according to the following formula:
Yield at maturity = [(V2 – V1) / V1] where:
Opening value of the index (V1) = average of three closing values of the IREC Indice Québec IQ‑30™ during the first three weeks of the term
Closing value of the index (V2) = average of four closing values of the IREC Indice Québec IQ‑30™ during the last four months of the term
The total amount of interest payable at maturity is calculated by applying the yield rate obtained by the above formula to the capital invested at maturity, or to the remaining portion of the invested capital, as the case may be.
The Stock Index Bond is not a direct investment in the constituent securities of the IREC Indice Québec IQ‑30™. Accordingly, the yield to maturity is determined excluding the dividends paid on such securities.
See the characteristics of current issues for the dates of the opening and closing readings. |
| Authorized purchasers: |
Persons or groups of persons or of properties, domiciled in Québec and subject to the rules of Québec law (natural persons, general or limited partnerships, legal persons, successions of persons, foundations and personal or social trusts). |
| Risk factors: |
If the change in the IREC Indice Québec IQ‑30™, calculated on the basis of the readings indicated above, is negative over a period of five or 10 years, the rate of return is zero. In this case, no interest is payable at maturity but the capital is repaid in full. Consequently, the purchaser of the bonds incurs no risk of loss of capital. The bonds are neither assignable nor transferable, and there is no secondary market for them. |
| Eligible accounts: |
Investment Savings Account, tax‑free savings account (TFSA), tax-Free First Home Savings Account (FHSA), registered retirement savings plan (RRSP), registered retirement savings plan (RRSP), registered retirement income fund (RRIF), locked‑in retirement account (LIRA) and life income fund (LIF). Can also be entered in the account of a trustee or of an agent of a trustee for the benefit of a participant in a self‑directed plan or fund. |
| Redemption: |
At maturity only |
| Assignment and transfer: |
The Bonds are assignable and transferable only under the conditions and in the cases provided for in the Regulation respecting savings products (CQLR, chapter A-6.001, r. 9), in particular in the event of divorce or death of the participant. In the case of a redemption before maturity, only the amount invested at the issue date is redeemed. |
They are not transferable between the accounts of a participant. |
| Hypothec: |
Allowed in favour of financial institutions if the bonds are held in an Investment Savings Account or TFSA. |
| Treatment at maturity: |
In the absence of instructions from the client, the capital and interest are automatically reinvested in Flexi‑Plus Savings units. |
