Goldman plans leveraged buffered notes on S&P 500 Shariah index

By Jennifer Chiou

New York, Sept. 27 - Goldman Sachs Group, Inc. plans to price 0% leveraged buffered index-linked notes tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The filing stated that the S index includes companies that result from the index sponsor's application of a screen based on Islamic law principles to the constituents of the S&P 500 index. The notes are not intended to be Shariah compliant, and the index and the index constituents may not be Shariah compliant.

The notes will mature between 18 and 21 months after pricing.

The payout at maturity will be par plus triple any index gain, up to a maximum return of 10.5% to 12.3%.

Investors will receive par if the index falls by up to 10% and will lose 1.1111% for each 1% decline beyond 10%.

Goldman, Sachs & Co. is the underwriter.

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