2003 Media Releases

Australian retail investors are offered a new investment opportunity with Portfolio Linked Floating Rate Notes (FRNs), the next-generation Nexus high-yield investment product launched today by Deutsche Bank and Nexus Bonds Limited.

An investment based on Deutsche Bank’s lending and credit business, Portfolio Linked FRNs will be listed on the Australian Stock Exchange and offer investors a floating rate return equal to the 90 Day Bank Bill rate plus 3.25% a year.

“Deutsche Bank, through Nexus, is pleased to provide retail investors with another high-yield investment opportunity which would normally be restricted to the professional investment community,” said Kevin Kosovich, Head of Integrated Credit, Deutsche Bank Australia.

Portfolio Linked FRNs will carry a BBB investment grade rating by independent ratings agency Standard & Poor’s.

“Deutsche Bank expects the outlook for higher interest rates will make Portfolio Linked FRNs, which have an investment grade, even more appealing to retail investors,” he said.

The enhanced return to Portfolio Linked FRN Noteholders is generated through their exposure to the credit worthiness of a diversified portfolio of senior (secured or unsecured) debt obligations of over 70 international and Australian companies owed to the Deutsche Bank Group. Each company in the portfolio will carry its own investment grade credit rating from Standard & Poor’s or Deutsche Bank.

Under its arrangements with Deutsche, Nexus Bond Limited will issue up to 560,000 Portfolio Linked FRN Notes at $100 each to raise $56 million. The minimum investment for retail investors is $10,000. Nexus will be able to issue a further $42 million to meet oversubscriptions.

The first product issued by Nexus Bond Limited, through its arrangement’s with Deutsche Bank, was Nexus High-Yield Bonds which was oversubscribed following its launch in December 2002. Nexus High-Yield Bonds are currently trading on the Australian Stock Exchange at around $104.

For further information contact:

Alex Gottshall 9221 4433 
Kate Abrahams 9258 2416

Offers of Portfolio Linked Floating Rate Notes will be made only pursuant to the Prospectus dated 12 November 2003. Applications for Portfolio Linked Floating Rate Notes are expected to close on 12 December 2003 and can be made only on the Application Form attached to, or accompanying, the Prospectus.

About Nexus

Nexus has been established to provide investors with investment opportunities normally only available to the professional investment community. Nexus is an Australian limited liability company incorporated under the Corporations Act. Through its arrangements with Deutsche Bank and other service providers, Nexus is developing new investment products for investors. These investment products are designed to provide defined risk profiles, maturities and returns.