Eugene Investment & Securities Launches Lizard Early Redemption Step-Down ELS Offering

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 13th that it will offer a total of 2 billion KRW worth of Lizard early redemption step-down ELS Type 1 through public subscription until 2 PM on the 15th.

The newly offered "357th ELS" is a 3-year maturity principal non-guaranteed product based on the KOSPI200 Index, Standard & Poor's 500 Index (S&P500), and EUROSTOXX50 Index. The pre-tax yield for early redemption, maturity redemption, and lizard redemption is 6.4% per annum.

The "357th ELS" provides opportunities for early redemption and maturity redemption every six months according to the step-down structure. Specifically, if on the early redemption evaluation date, the closing prices of all underlying assets are at least 90% (at 6 and 12 months), 85% (at 18 and 24 months), or 80% (at 30 months) of the initial reference price, early redemption occurs. On the maturity evaluation date, if the closing prices are at least 65% (at 36 months), the maturity redemption condition is met, yielding a pre-tax return of 19.2%.

There are also two lizard redemption opportunities. If early redemption does not occur and during the 6 months no underlying asset price falls below 85% of the initial reference price, a coupon of 3.2% pre-tax (6.4% annualized) is paid on the first early redemption evaluation date. If during 12 months no underlying asset price falls below 75% of the initial reference price, a coupon of 6.4% pre-tax is paid on the second early redemption evaluation date.

This is a No Knock-in structure, and if on the maturity evaluation date any underlying asset's closing price is below 65% of the initial reference price, principal loss will occur. The minimum subscription amount for the public offering product is 1 million KRW or more (increasing in increments of 100,000 KRW).

Kim Gyuhwan, Head of Financial Products at Eugene Investment & Securities, said, "The 357th ELS is a product with many advantages such as two lizard redemption opportunities, low lizard redemption barriers, and favorable returns."