Tesla, Amazon.com, Netflix, and Other Underlying Assets
[Asia Economy Reporter Minwoo Lee] Yuanta Securities is launching five types of equity-linked securities (ELS) based on domestic and international indices and U.S. stock underlying assets.
Yuanta Securities announced on the 9th that it will offer these five ELS with a total public offering amount of 19 billion KRW until the 10th.
ELS No. 4567 is a principal non-guaranteed product with a maturity of 3 years and an early redemption cycle of 6 months. It is based on the KOSPI 200 index. If the underlying asset is at or above 92% of the initial reference price (at 6 months and 12 months), 90% (at 18 months and 24 months), and 85% (at 30 months and 36 months), early or maturity redemption will occur with a pre-tax annual return of 4.40%. Even if early redemption does not occur, if the underlying asset has never fallen below 60% of the initial reference price during the investment period, maturity redemption will be made with a pre-tax return of 13.20% (4.40% annually). However, if conditions are not met, the maximum loss rate can be -100%.
ELS No. 4568 is a principal partial payment product with a maturity of 1 year and an early redemption cycle of 3 months. It is based on Tesla and Netflix, which are listed on the U.S. stock market. If all underlying assets are at or above 99% of the initial reference price (at 3 months, 6 months, and 9 months), early redemption will occur with a pre-tax annual return of 10.00%. Even if early redemption does not occur, if at maturity all underlying assets’ maturity evaluation prices are at or above the initial reference price, profits will be paid according to the return of the underlying asset with the lowest increase rate. If any of the underlying assets fall below the initial reference price, principal loss may occur, but the maximum loss rate is limited to -10%.
ELS No. 4569 is a principal non-guaranteed product with a maturity of 6 months. It is based on Tesla and Amazon.com listed on the U.S. stock market, and a pre-tax return of 1.80% (21.60% annually) is paid regardless of the closing price of all underlying assets on the monthly coupon payment evaluation date. If all underlying assets are at or above 100% of the initial reference price on the maturity evaluation date, the principal is repaid, and even if during the investment period none of the underlying assets fall below 70% of the initial reference price, the principal is repaid. However, if conditions are not met, the maximum loss rate is -100%. If during the investment period any underlying asset falls below 70% of the initial reference price and the maturity evaluation price is below 100% of the initial reference price, the physical stock of the asset with the greater decline rate will be delivered (if the decline rates are the same, stock of the underlying asset decided by the issuer will be delivered).
In addition, ELS No. 4565 based on the S&P 500, Euro Stoxx 50, and Nikkei 225 indices, and No. 4566 based on the KOSPI 200 and S&P 500 indices will also be offered.
Applications can be made at Yuanta Securities nationwide branches, the website, Home Trading System (HTS), and Mobile Trading System (MTS). ELS Nos. 4565, 4566, and 4567 can be subscribed from a minimum of 100,000 KRW in units of 100,000 KRW, while ELS Nos. 4568 and 4569 can be subscribed from a minimum of 1,000,000 KRW in units of 100,000 KRW. For more details, please refer to the website or contact the customer center.
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