NH Investment & Securities Launches 13 Products Including 'Japanese Individual Stock Underlying ELS'

NH Investment & Securities announced on the 20th that it will launch the industry's first step-down type public equity-linked securities (ELS) product based on individual Japanese stocks as underlying assets.

A total of 13 products, including 'Japanese Individual Stock Underlying ELS No. 23708' as well as ELS and equity-linked bonds (ELB), will be offered until 4 PM on the 24th (for general investors; professional investors' deadline is the 27th). The issuance date is set for the 28th.

ELS No. 23708 is a step-down early redemption type with a maturity of 3 years, based on Tokyo Electron and Mitsubishi Heavy Industries as underlying assets. On early redemption evaluation dates every 6 months, if the underlying asset prices are at least 85% (at 6 and 12 months), 80% (at 18 and 24 months), or 75% (at 30 months) of the initial reference price, an annual pre-tax return of 14.50% will be paid and early redemption will occur. Even if early redemption does not occur, on the maturity date, if any one of the underlying assets is at or above 70% of the initial reference price until the maturity evaluation date, or if none of the assets have fallen below 30% during the investment period, a pre-tax maturity return of 43.50% will be paid. However, if any of the underlying assets have fallen below 30% of the initial reference price at any time and any asset is below 70% at maturity evaluation, principal loss of up to 100% may occur according to the maturity redemption conditions.

NH Investment & Securities views the Japanese individual stock underlying ELS product as expanding investment options in the Japanese market. Until now, domestic ELS investors have invested in ELS based on the Japanese Nikkei 225 index, but they had to invest alongside other foreign indices and could not select individual stocks. Jeon Dong-hyun, Head of Product Solutions at NH Investment & Securities, stated, "At a time when the valuation of the Japanese stock market is rising, the launch of this Japanese individual stock ELS expands diverse investment choices for investors and provides the effect of investing in individual Japanese stocks even with small amounts." He added, "NH Investment & Securities will continue to offer a product lineup that satisfies a wide range of investors."