Eugene Investment & Securities Launches Multi-Barrier Step-Down ELS Public Offering

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 1st that it will offer a total of 2 billion KRW worth of multi-lizard type step-down ELS 1 series through public subscription until 2 PM on the 3rd.

The ‘350th ELS’ is based on the Standard & Poor's 500 Index (S&P500), the Hang Seng China Enterprises Index (HSCEI), and the EURO STOXX 50 Index (EUROSTOXX50). It is a 3-year maturity principal non-guaranteed product with a pre-tax annual return of 8.0% upon early redemption, maturity redemption, or lizard redemption. Eugene Investment & Securities has been issuing special ELS products since April to support customers' successful investments.

This ‘350th ELS’ offers a total of 3 lizard redemption opportunities and 5 early redemption opportunities plus 1 maturity redemption opportunity according to the multi-lizard step-down structure. If on the early redemption evaluation dates, the closing prices of all underlying assets are at least 90% (6 months, 12 months), 85% (18 months, 24 months), or 80% (30 months) of the initial reference price, early redemption will occur. If on the maturity evaluation date the price is at least 65% (36 months), the maturity redemption condition is met, yielding a pre-tax return of 24.0%.

There are also 3 lizard redemption opportunities over 18 months. Under the condition that early redemption does not occur, if the prices of all underlying assets have never fallen below 85% of the initial reference price for 6 months, a pre-tax coupon of 4.0% (annualized 8.0%) is paid on the first early redemption evaluation date. If the prices have never fallen below 80% for 12 months, a pre-tax coupon of 8.0% is paid on the second early redemption evaluation date.

Finally, if the prices of all underlying assets have never fallen below 75% of the initial reference price for 18 months, a pre-tax coupon of 12.0% is paid on the third early redemption evaluation date.

This is a no knock-in structure, and if on the maturity evaluation date any of the underlying assets is below 65% of the initial reference price, principal loss will occur.

Kim Kyuhwan, Head of Financial Products at Eugene Investment & Securities, said, “The 350th ELS being offered this time has 3 lizard redemption opportunities within 1 year and 6 months, increasing the likelihood of early redemption,” adding, “With a pre-tax coupon rate of 8% per annum, it is a suitable product for customers who want quick early redemption and favorable returns.”