NH Investment & Securities Launches 5 Types of Public ELS Including Monthly Payment Plans

[Asia Economy Reporter Kum Boryeong] NH Investment & Securities is selling five types of publicly offered equity-linked securities (ELS), including monthly payment products.

NH Investment & Securities announced on the 22nd that it will recruit five types of ELS until 1 p.m. on the 23rd.

ELS 20043 is a monthly payment product. It is expected to attract interest from investors who anticipate interest income in the form of a monthly pension.

This product is based on the S&P 500, Hong Kong H Index (HSCEI), and Samsung Electronics common stock. It is a 3-year maturity product that pays a monthly return rate of 0.4175% (pre-tax, annual 5.01%) if the closing prices of all underlying assets on each monthly payment evaluation date are 65% or more of the initial reference price. For example, if you subscribe with 100 million KRW, you can receive 417,500 KRW (pre-tax) monthly. The maximum number of monthly payments during the investment period is 36.

Also, on early redemption evaluation dates every six months, if the prices of all underlying assets are 95% (6 months), 90% (12 months), 85% (18, 24 months), 80% (30 months), or 75% (36 months) or more of the initial reference price, the principal plus the monthly payment return rate will be automatically redeemed early. However, if any of the underlying assets fall below 55% of the initial reference price at any time and any of them are below 75% at maturity evaluation, principal loss of up to 100% may occur according to the maturity redemption conditions.

ELS 20041 will be redeemed early if the early redemption condition of 85% or more is met after 6 months from issuance. Early redemption within one year can be expected, and the principal loss condition is set at 45%, relatively lowering the possibility of principal loss.

ELS 20041 is a 3-year maturity product based on the S&P 500, EuroStoxx 50 Index, and KOSPI 200 Index. On early redemption evaluation dates, if the prices of all underlying assets are 85% (6, 12, 18 months), 80% (24, 30 months), or 75% (36 months) or more of the initial reference price, it pays an annual return of 4.5% (pre-tax). Even if early redemption does not occur, if none of the underlying assets have fallen below 45% of the initial reference price until maturity evaluation, it pays an annual return of 4.5% (pre-tax). However, if any of the underlying assets have fallen below 45% of the initial reference price and any are below 75% at maturity evaluation, principal loss of up to 100% may occur according to the maturity redemption conditions.

The five ELS products are recruited with a total limit of 37 billion KRW. Subscriptions are available at all NH Investment & Securities branches and on the NH Investment & Securities online website. The minimum subscription amount per product is 1 million KRW.