Bond Glencore Global AG 1.075% ( XS1225694899 ) in JPY

Glencore Global AG

100 % ⇌

Switzerland

XS1225694899 ( in JPY )

1.075% per year ( payment 1 time a year)

11/05/2022 - Bond has expired

Prospectus brochure of the bond Glencore International AG XS1225694899 in JPY 1.075%, expired

100 000 000 JPY

40 000 000 000 JPY

Glencore International AG is a multinational commodity trading and mining company headquartered in Baar, Switzerland, with operations spanning the globe in the production and marketing of various metals and minerals, energy products, and agricultural products.

The bond identified by ISIN XS1225694899, issued by Glencore International AG ? the Swiss-based subsidiary of Glencore plc, a prominent multinational commodity trading and mining company ? has recently matured and been fully repaid. This JPY-denominated obligation, originating from Switzerland, was initially issued with a total size of JPY 40,000,000,000 and a minimum purchase requirement of JPY 100,000,000, featuring an annual interest rate of 1.075%. With an annual payment frequency, the bond reached its maturity date on May 11, 2022, at which point it was trading at 100% of its face value, confirming its successful redemption.

Base Prospectus dated 12 May 2015

Glencore Finance (Europe) S.A.
(incorporated in Luxembourg)
guaranteed by

Glencore plc
(incorporated in Jersey)
and
Glencore International AG
(incorporated in Switzerland)
and
Glencore (Schweiz) AG
(incorporated in Switzerland)
U.S.$ 20,000,000,000
Euro Medium Term Note Programme

Arranger
Barclays
Dealers
Barclays
BNP PARIBAS
Citigroup
Credit Suisse
Deutsche Bank
HSBC
J.P. Morgan
The Royal Bank of Scotland

Under this U.S.$ 20,000,000,000 Euro Medium Term Note Programme (the "Programme"), Glencore Finance
(Europe) S.A. (the "Issuer") may from time to time issue notes (the "Notes") unconditionally (subject, in the
case of Glencore (Schweiz) AG, to applicable Swiss law) and irrevocably guaranteed by Glencore plc
("Glencore" or the "Company"), Glencore International AG and Glencore (Schweiz) AG (each a "Guarantor"
and together, the "Guarantors") and denominated in any currency agreed between the Issuer, the Guarantors
and the relevant Dealer (as defined below).
The maximum aggregate principal amount of Notes outstanding at any one time under the Programme will
not exceed U.S.$ 20,000,000,000 (and for this purpose, any Notes denominated in another currency shall be
translated into U.S. dollars at the date of the agreement to issue such Notes (calculated in accordance with the
provisions of the Dealership Agreement (as defined under "Subscription and Sale")). The maximum
aggregate principal amount of Notes which may be outstanding at any one time under the Programme may be
increased from time to time, subject to compliance with the relevant provisions of the Dealership Agreement
as defined under "Subscription and Sale".
The Notes may be issued on a continuing basis to one or more of the Dealers specified under "General
Description of the Programme" and any additional Dealer appointed under the Programme from time to time
by the Issuer and each Guarantor (each a "Dealer" and together the "Dealers"), which appointment may be for
a specific issue or on an ongoing basis. References in this Base Prospectus to the "relevant Dealer" shall, in
relation to an issue of Notes being (or intended to be) subscribed by more than one Dealer, be to the lead
manager of such issue and, in relation to an issue of Notes subscribed by one Dealer, be to such Dealer.
Application has been made for Notes issued under the Programme for the period of 12 months after the
publication of this Base Prospectus to be listed on the Official List of the Luxembourg Stock Exchange and
admitted to trading on the regulated market of the Luxembourg Stock Exchange (the "Luxembourg Stock
Exchange's Regulated Market"). References in the Base Prospectus to Notes being "listed" (and all related
references) shall mean that such Notes have been listed on the Luxembourg Stock Exchange and admitted to
trading on the Luxembourg Stock Exchange's Regulated Market. The Luxembourg Stock Exchange's
Regulated Market is a regulated market for the purposes of the Directive 2004/39/EC on Markets in Financial
Instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the
European Parliament and of the Council and repealing Council Directive 93/22/EEC. The Programme also
permits Notes to be issued on the basis that they will not be admitted to listing, trading and/or quotation by
any listing authority, stock exchange and/or quotation system or to be admitted to listing, trading and/or
quotation by such other or further listing authorities as may be agreed with the Issuer. Notice of the aggregate
nominal amount of the Notes, interest (if any) payable in respect of Notes, the issue price of Notes and any
other terms and conditions which are applicable to each Tranche (as defined under "Terms and Conditions of
the Notes") of Notes will be set out in the applicable final terms (the "Final Terms") which, with respect to the
Notes to be admitted to listing on the Official List of the Luxembourg Stock Exchange and to trading on the
Regulated Market of the Luxembourg Stock Exchange, will be filed with the Luxembourg Stock Exchange
and the Luxembourg Commission de Surveillance du Secteur Financier (the "CSSF").
In the case of any Notes which are to be admitted to trading on a regulated market within the European
Economic Area or offered to the public in a Member State of the European Economic Area in circumstances
which require the publication of a prospectus under the Prospectus Directive (as defined herein), the
minimum specified denomination shall be 100,000 (or its equivalent in any other currency as at the date of
issue of the Notes).
This document comprises a base prospectus for the purposes of Article 5.4 of the Prospectus Directive and for
the purpose of giving information with regard to the Issuer and each Guarantor, which, according to the
particular nature of the Issuer and each Guarantor and the Notes, is necessary to enable investors to make an
informed assessment of the liabilities, financial position, profit and losses and prospects of the Issuer.

2

References in this Base Prospectus to the "Group" are to references to the Company and its subsidiaries and
any subsidiary thereof from time to time, and references to "Xstrata" are to Xstrata Limited (previously
known as Xstrata plc) and its subsidiaries and any subsidiary thereof as at completion of the acquisition by
Glencore of Xstrata completed on 2 May 2013 (the "Acquisition"). This document comprises the base
prospectus in respect of Glencore Finance (Europe) S.A. and for that purpose, this whole document would be
referred to as the "Base Prospectus". This Base Prospectus has been approved by the CSSF which is the
Luxembourg competent authority for the purpose of the Prospectus Directive and relevant implementing
measures in Luxembourg, as a base prospectus issued in compliance with the Prospectus Directive and
relevant implementing measures in Luxembourg for the purpose of giving information with regard to the issue
of Notes issued under the Programme described in this Base Prospectus during the period of twelve months
after the date hereof. By approving this Base Prospectus, the CSSF does not give any undertaking as to the
economical and financial soundness of the operation or the quality or solvency of the Issuer in line with the
provisions of article 7(7) of the Luxembourg Act dated 10 July 2005 (as amended) relating to prospectuses for
securities (loi relative aux prospectus pour valeurs mobilières).
Prospective investors should have regard to the factors described under the section headed "Risk Factors" in
this Base Prospectus.
The Programme is, as of the date of this Base Prospectus, rated Baa2 in respect of the Notes by Moody's
Investors Service Ltd. ("Moody's") and BBB in respect of the Notes by Standard & Poor's Credit Market
Services France SAS ("S&P"). Moody's and S&P are established in the European Union and are registered
under Regulation (EC) No 1060/2009 on credit rating agencies, as amended (the "CRA Regulation"). Further
information relating to the registration of rating agencies under the CRA Regulation and a current list of
registered credit rating agencies can be found on the website of the European Securities and Markets
Authority.
Tranches of Notes issued under the Programme may be rated or unrated. Where a Tranche of Notes is rated,
the applicable rating(s), which will not necessarily be the same as the rating applicable to the Programme, will
be specified in the relevant Final Terms. In general, European regulated investors are restricted from using a
rating for regulatory purposes if such rating is not issued by a credit rating agency established in the European
Union and registered under the CRA Regulation.
A rating is not a recommendation to buy, sell or hold securities and may be subject to suspension, change or
withdrawal at any time by the assigning rating agency.
This document should be read and construed together with any supplements hereto and with any other
documents incorporated by reference herein and, in relation to any Tranche of Notes, should be read and
construed together with the relevant Final Terms.
The Issuer and each Guarantor has confirmed to the Dealers named under "Subscription and Sale" below that
this Base Prospectus (including for this purpose, each relevant Final Terms) contains all information which is
(in the context of the Programme, the issue and offering of the Notes and the guarantees of the Notes)
material; that such information is true, accurate and complete in all material respects and is not misleading in
any material respect; that any opinions, predictions or intentions expressed herein are honestly held or made,
are based on reasonable assumptions and are not misleading in any material respect; that this Base Prospectus
does not omit to state any material fact necessary to make such information, opinions, predictions or
intentions (in the context of the Programme, the issue and offering of the Notes and the guarantees of the
Notes) not misleading in any material respect; and that all reasonable enquiries have been made to verify the
foregoing.
No person has been authorised to give any information or to make any representation not contained in or not
consistent with this Base Prospectus or any other document entered into in relation to the Programme or any

3

information supplied by the Issuer or any Guarantor or such other information as is in the public domain and,
if given or made, such information or representation should not be relied upon as having been authorised by
any of the Issuer, the Trustee, the Guarantors or the Dealers.
No representation or warranty is made or implied by the Dealers or any of their respective affiliates, and
neither the Dealers nor any of their respective affiliates makes any representation or warranty or accepts any
responsibility as to the accuracy or completeness of the information contained in this Base Prospectus.
Neither the delivery of this Base Prospectus or any Final Terms nor the offering or delivery of any Note shall,
in any circumstances, create any implication that the information contained in this Base Prospectus is true
subsequent to the date hereof or the date upon which this Base Prospectus has been most recently amended or
supplemented or that there has been no adverse change, or any event reasonably likely to involve any adverse
change, in the condition (financial or otherwise) of the Issuer or any Guarantor since the date thereof or, if
later, the date upon which this Base Prospectus has been most recently amended or supplemented or that any
other information supplied in connection with the Programme is correct at any time subsequent to the date on
which it is supplied or, if different, the date indicated in the document containing the same.
The distribution of this Base Prospectus and any Final Terms and the offering and delivery of the Notes in
certain jurisdictions may be restricted by law. Persons into whose possession this Base Prospectus or any
Final Terms comes are required by the Issuer, any Guarantor and the Dealers to inform themselves about and
to observe any such restrictions. For a description of certain restrictions on offers and deliveries of Notes and
on the distribution of this Base Prospectus or any Final Terms and other offering material relating to the
Notes, see "Subscription and Sale". In particular, Notes have not been and will not be registered under the
United States Securities Act of 1933 (as amended) (the "Securities Act") and are subject to U.S. tax law
requirements. Subject to certain exceptions, Notes may not be offered, sold or delivered within the United
States or to U.S. persons.
Neither this Base Prospectus nor any Final Terms constitutes an offer or an invitation to subscribe for any
Notes and should not be considered as a recommendation by the Issuer, the Guarantors, the Trustee, the
Dealers or any of them that any recipient of this Base Prospectus or any Final Terms should subscribe for any
Notes. Each recipient of this Base Prospectus or any Final Terms shall be taken to have made its own
investigation and appraisal of the condition (financial or otherwise) of the Issuer and the Guarantors.
The Issuer and the Guarantors may agree with any Dealer that Notes may be issued in a form not
contemplated by the Terms and Conditions of the Notes herein, in which event (in the case of Notes intended
to be admitted to listing on the Official List of the Luxembourg Stock Exchange and to trading on the
Luxembourg Stock Exchange's Regulated Market) a supplement to this Base Prospectus, if appropriate, will
be made available which will describe the effect of the agreement reached in relation to such Notes.
In this Base Prospectus, unless otherwise specified, references to a "Member State" are references to a
Member State of the European Economic Area, references to "Relevant Member State" means a Member
State of the European Economic Area which has implemented the Prospectus Directive, references to
"Prospectus Directive" mean Directive 2003/71/EC (and amendments thereto, including the 2010 PD
Amending Directive, to the extent implemented in the Relevant Member State), and includes any relevant
implementing measure in the Relevant Member State, references to "2010 PD Amending Directive" mean
Directive 2010/73/EU, references to "US", "U.S." and "United States" are to the United States of America,
references to "U.S.$" and "U.S. dollars" are to United States dollars, references to "EUR", "" or "Euro" are
to the currency introduced at the start of the third stage of European economic and monetary union, and as
defined in Article 2 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the Euro, as
amended, references to "sterling", "pound sterling" and "£" are to the lawful currency of the United
Kingdom, references to "ZAR" are to South African Rand, references to "Swiss Francs" are to the lawful
currency of Switzerland, references to "Argentine Pesos" or "ARS" are to the lawful currency of Argentina,

4

references to "Australian dollars", "A$" or "AUD" are to the lawful currency of Australia, references to
"Canadian dollars", "C$" or "CAD" are to the lawful currency of Canada, references to "Chilean Peso" or
"CLP" are to the lawful currency of Chile, references to "Colombian Pesos" or "COP" are to the lawful
currency of Colombia, references to "yen" or "JPY" are to the lawful currency of Japan, references to
"Kroner" or "NOK" are to the lawful currency of Norway, references to "Peruvian Sol" or "PEN" are to the
lawful currency of Peru, references to "Kazakhstani Tenge" or "KZT" are to the lawful currency of
Kazakhstan and references to the "PHP" are to the lawful currency of the Philippines.
Certain figures included in this Base Prospectus have been subject to rounding adjustments; accordingly,
figures shown for the same category presented in different tables may vary slightly and figures shown as
totals in certain tables may not be an arithmetic aggregation of the figures which precede them.
This Base Prospectus has been prepared on the basis that any offer of Notes in any Relevant Member State
will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Relevant
Member State, from the requirement to publish a prospectus for offers of Notes. Accordingly any person
making or intending to make an offer in that Relevant Member State of Notes which are the subject of an
offering contemplated in this Base Prospectus as completed by Final Terms in relation to the offer of those
Notes may only do so in circumstances in which no obligation arises for the Issuer, the Guarantors or any
Dealer to publish a prospectus pursuant to Article 3 of the Prospectus Directive or supplement a prospectus
pursuant to Article 16 of the Prospectus Directive, in each case, in relation to such offer. None of the Issuer,
the Guarantors nor any Dealer has authorised, nor do they authorise, the making of any offer of Notes in
circumstances in which an obligation arises for the Issuer, the Guarantors or any Dealer to publish or
supplement a prospectus for such offer and the relevant Issuer has consented in writing to its use for the
purpose of such offer.
In connection with the issue of any Tranche of Notes, one or more relevant Dealers (in such capacity,
the "Stabilising Manager(s)") (or any person acting on behalf of any Stabilising Manager(s)) may over
allot Notes or effect transactions with a view to supporting the market price of the Notes at a level
higher than that which might otherwise prevail. However, there is no assurance that the Stabilising
Manager(s) (or any person acting on behalf of any Stabilising Manager) will undertake stabilisation
action. Any stabilisation action may begin on or after the date on which adequate public disclosure of
the terms of the offer of the relevant Tranche of Notes is made and, if begun, may be ended at any time,
but it must end no later than the earlier of 30 days after the issue date of the relevant Tranche of Notes
and 60 days after the date of the allotment of the relevant Tranche of Notes. Any stabilisation action or
over allotment must be conducted by the relevant Stabilising Manager(s) (or any person acting on
behalf of any Stabilising Manager(s)) in accordance with all applicable laws and rules.

5

RESPONSIBILITY STATEMENT
The Issuer and each Guarantor (together, the "Responsible Persons") accepts responsibility for the
information contained in this Base Prospectus and the Final Terms for each Tranche of Notes issued under the
Programme and declares that, having taken all reasonable care to ensure that such is the case, the information
contained in this Base Prospectus is, to the best of its knowledge, in accordance with the facts and contains no
omission likely to affect its import.

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TABLE OF CONTENTS
Page
RISK FACTORS ................................................................................................................................................. 8
GENERAL DESCRIPTION OF THE PROGRAMME .................................................................................... 30
INFORMATION INCORPORATED BY REFERENCE .................................................................................. 34
SUPPLEMENT TO THE BASE PROSPECTUS .............................................................................................. 38
FORMS OF THE NOTES ................................................................................................................................. 39
TERMS AND CONDITIONS OF THE NOTES .............................................................................................. 42
FORM OF FINAL TERMS ............................................................................................................................... 73
OVERVIEW OF PROVISIONS RELATING TO THE NOTES WHILE IN GLOBAL FORM ...................... 83
DESCRIPTION OF GLENCORE FINANCE (EUROPE) S.A. ....................................................................... 87
DESCRIPTION OF THE COMPANY AND THE GROUP ............................................................................. 90
DESCRIPTION OF GLENCORE INTERNATIONAL AG............................................................................ 138
DESCRIPTION OF GLENCORE (SCHWEIZ) AG ....................................................................................... 139
SUBSCRIPTION AND SALE ........................................................................................................................ 140
TAXATION ..................................................................................................................................................... 144
GENERAL INFORMATION .......................................................................................................................... 151
DEFINITIONS AND GLOSSARY OF TECHNICAL TERMS ...................................................................... 155
APPENDIX 1 -- OVERVIEW OF CERTAIN DIFFERENCES BETWEEN INTERNATIONAL
FINANCIAL REPORTING STANDARDS AND SWISS GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES ............................................................................................................... 158

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RISK FACTORS
Prospective investors should read and carefully consider the following risk factors and other information in
this Base Prospectus before deciding to invest in the Notes. Additional risks not currently known to the Issuer
or the Guarantors or that they now deem immaterial may also adversely affect the Issuer or the Guarantors
or affect an investment in the Notes.
Risks relating to Glencore Finance (Europe) S.A.
Glencore Finance (Europe) S.A. is a finance vehicle.
Glencore Finance (Europe) S.A.'s primary business is the raising of money for the purpose of on lending to
other members of the Group. Accordingly, substantially all Glencore Finance (Europe) S.A.'s assets are loans
and advances made to other members of the Group and the ability of Glencore Finance (Europe) S.A. to
satisfy its obligations in respect of the Notes will depend upon payments made to it by other members of the
Group in respect of loans and advances made by Glencore Finance (Europe) S.A.
External risks relating to the Group
The Group is exposed to fluctuations in the expected volumes of supply and demand for commodities.
The expected volumes of supply and demand for the commodities in which the Group is active vary over
time, based on changes in resource availability, government policies and regulation, costs of production,
global and regional economic conditions, demand in end markets for products in which the commodities are
used, technological developments, including commodity substitutions, fluctuations in global production
capacity, global and regional weather conditions, natural disasters and diseases, all of which impact global
markets and demand for commodities. Furthermore, changes in expected supply and demand conditions
impact the expected future prices (and thus the price curve) of each commodity.
Fluctuations in the volume of each commodity produced by the Group or marketed by the Group could
materially impact the business, results of operations and earnings of the Group. These fluctuations could
result in a reduction or increase in the income generated in respect of the volumes handled by the Group's
marketing activities, or a reduction or increase in the volume and/or margin in respect of commodities
produced by the Group's industrial assets.
The Group is exposed to fluctuations in commodity prices and to deterioration in economic and
financial conditions.
The revenue and earnings of the Group's industrial asset activities and, to a lesser extent, the Group's
marketing activities are dependent upon prevailing commodity prices. Commodity prices are influenced by a
number of external factors, including the supply and demand for commodities, speculative activities by
market participants, global political and economic conditions and related industry cycles and production costs
in major producing countries. Fluctuations in the price of commodities produced or marketed by the Group
could materially impact the Group's business, results of operations and earnings.
The impacts that fluctuating commodity prices have on the Group's business differ between its marketing
activities and industrial activities.
In a market environment in which prices for a particular commodity are higher on average, the
premiums/margins that the Group generates in its physical marketing operations relating to such commodity
as a result of geographical, time and quality imbalances tend to be higher. The Group's marketing activities
also generally benefit from fluctuating market prices, rather than long periods of stable prices, as it seeks to
physically arbitrage such resulting price differentials. As prices of commodities rise, the Group generally has

8

higher working capital financing requirements over the same quantity of commodities in question. During
periods of falling commodity prices, the opposite applies in that the Group will require less working capital
financing for its marketing activities.
Higher prices will be particularly favourable to the profitability of the Group in respect of those commodities
which the Group produces at its industrial assets or are produced by its associated companies and other
investees. Similarly, low prices will negatively impact the Group's industrial activities and could result in
such activities incurring losses.
A significant downturn in the price of commodities generally results in a decline in the Group's profitability
during such a period and could potentially result in a devaluation of inventories and impairments. Although
the impact of a downturn in commodity prices affects industrial and marketing activities differently, the
negative impact on its industrial activities is generally greater, as the profitability in the industrial activities is
more directly exposed to price risk due to its higher level of fixed costs, while the Group's marketing
activities are ordinarily substantially hedged in respect of price risk and principally operate a service-like
margin-based model. The Group has not historically engaged in meaningful hedging against declines in
commodity prices related to industrial production and, as a result, volatility in commodity prices has directly
impacted its results of operations. If the Group does not engage in meaningful hedging against declines in
commodity prices, its business and results of operations could also be impacted by volatility in commodity
prices.
In addition, a decline in economic and financial conditions globally or in a specific country, region or sector
may have a material adverse effect on the business, results of operations or earnings of the Group. For
example, although most commodities' fixed pricing periods are relatively short, a significant reduction or
increase in commodity prices could result in customers or suppliers, as the case may be, being unwilling or
unable to honour their contractual commitments to purchase or sell commodities on pre-agreed pricing terms.
In addition, a tightening of available credit may make it more difficult to obtain, or may increase the cost of
obtaining, financing for the Group's marketing activities and capital expenditures at the Group's industrial
assets. Changing production levels in response to current price levels or estimates of future price levels
imposes costs, and, if mistimed, could adversely affect the results of the Group's operations or financial
condition. In addition, the default, or a significant decline in the credit rating, of one or more sovereigns or
financial institutions could cause severe stress in the financial system generally and could adversely affect the
markets in which the Group operates and the businesses and economic condition and prospects of its
counterparties, customers, suppliers or creditors, directly or indirectly, in ways which it is difficult to predict.
The impact of this could be detrimental to the Group and could have a material adverse effect on the business,
results of operations or earnings of the Group.
The Group is exposed to fluctuations in currency exchange and interest rates.
The vast majority of transactions undertaken by the Group's industrial and marketing activities are
denominated in U.S. dollars. However, the Group is exposed to fluctuations in currency exchange rates
through its industrial activities, because a large proportion of the operating costs of these assets are
denominated in the currency of the country in which each asset is located, including the Australian dollar, the
Canadian dollar, the Euro, the Kazakhstani Tenge, the Chilean Peso, the Norwegian Kroner, the South African
Rand, the Argentine Peso, the Colombian Peso and the Peruvian Sol. The Group is also exposed to
fluctuations in currency exchange rates through its global office network which are denominated largely in the
currency of the country in which each office is located, the largest of such currency exposures being to the
Swiss Franc, the pound sterling and the Euro. The Group is also exposed to fluctuations in currency exchange
rates through its marketing activities, although only a small minority of purchase or sale transactions are
denominated in currencies other than U.S. dollars.

9

In respect of commodity purchase and sale transactions denominated in currencies other than U.S. dollars, the
Group's policy is to hedge the specific future commitment through a forward exchange contract. From time to
time, the Group may hedge a portion of its currency exposures and requirements in an attempt to limit any
adverse effect of exchange rate fluctuations on its results of operations, but there can be no assurance that
such hedging will eliminate the potential material adverse effect of such fluctuations. In addition, to the extent
that any currency exposures are unhedged or unmatched as a consequence of political risk, such exposure
could adversely affect the Group's financial results.
Foreign exchange rates have seen significant fluctuation in recent years, and a depreciation in the value of the
U.S. dollar against one or more of the currencies in which the Group incurs significant costs will, therefore, to
the extent it has not been hedged, result in an increase in the cost of these operations in U.S. dollar terms and
could adversely affect the Group's financial results.
The reporting currency and the functional currency of the majority of the Group's operations is the U.S.
dollar, as this is assessed to be the principal currency of the economic environment in which the Group
operates. For financial reporting purposes, transactions in foreign currencies are converted into the functional
currency of each entity using the exchange rate prevailing at the transaction date. Monetary assets and
liabilities outstanding at year end are converted at year-end rates. The resulting exchange differences are
recorded in the consolidated statement of income. The exchange rates between relevant local currencies and
the U.S. dollar have historically fluctuated, and the translation effect of such fluctuations may have a material
adverse effect on Group members' individual and the Group's consolidated results of operations or financial
condition.
The Group's exposure to changes in interest rates results from investing and borrowing activities undertaken
to manage its liquidity and capital requirements. The majority of the Group's borrowings, other than a portion
of long-term, fixed-rate public bonds, bear interest at floating rates. An increase in interest rates would
therefore result in a relatively immediate increase in the cost of servicing the Group's indebtedness and could
adversely affect its financial results. Although borrowing costs are taken into account when setting marketing
transaction terms, there is no assurance that increased financing costs can be passed on to customers and/or
suppliers. The Group may elect in the future to enter into interest rate swaps to convert some or all of its
floating-rate debt to fixed-rate debt or enter into fixed-rate to floating-rate swaps. There can be no assurance
that the Group will not be materially adversely affected by interest rate changes in the future.
The Group is exposed to significant geopolitical risk.
The Group operates and owns assets in a large number of geographic regions and countries, some of which
are categorised as developing and have unstable political or social climates and, as a result, is exposed to a
wide range of political, regulatory and tax environments. These environments are subject to change in a
manner that may be materially adverse for the Group, including changes to government policies and
regulations governing industrial production, foreign investment, price controls, import and export controls,
tariffs, subsidies, income and other forms of taxation (including policies relating to the granting of advance
rulings on taxation matters), nationalisation or expropriation of property, repatriation of income, royalties, the
environment and health and safety.
Relatively high commodity prices and other factors in recent years have resulted in increased resource
nationalism in some countries, with governments repudiating or renegotiating contracts with, and
expropriating assets from, companies that are producing in such countries. Many of the commodities that the
Group produces and markets are considered strategic resources for particular countries. Governments in these
countries may decide not to recognise previous arrangements if they regard them as no longer being in the
national interest. Governments may also implement export controls on commodities regarded by them as
strategic (such as oil or wheat) or place restrictions on foreign ownership of industrial assets. Renegotiation or
nullification of existing agreements, leases, permits or tax rulings, changes in fiscal policies (including new or

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