[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 23rd that it will offer two types of ELS, including the Lizard Step-down ELS and the Monthly Income Payment ELS, through public subscription until 2 p.m. on the 25th.
This product includes the “375th ELS” with a lizard step-down structure, based on the KOSPI 200 Index, Hong Kong Hang Seng Index (HSI), and Standard & Poor’s 500 Index (S&P 500). The pre-tax annual yield is the same at 3.5% for early redemption, maturity redemption, and lizard redemption.
The “375th ELS” offers early redemption and maturity redemption opportunities every six months according to the step-down structure. If the closing prices of all underlying assets are at least 90% of the initial reference price at 6 and 12 months, 85% at 18 and 24 months, and 80% at 30 months on the early redemption evaluation dates, early redemption occurs. If the closing prices are at least 65% at maturity (36 months), the maturity redemption condition is met, yielding a pre-tax return of 10.5%.
There is also one lizard redemption opportunity. If early redemption does not occur and none of the underlying asset prices fall below 85% of the initial reference price during the 12 months, a coupon of 3.5% pre-tax (annual 3.5%) can be earned on the second early redemption evaluation date.
This is a No Knock-in structure, and if any of the underlying assets are below 65% of the initial reference price at maturity, principal loss will occur.
The “376th ELS” has a monthly income structure and is based on the Standard & Poor’s 500 Index (S&P 500), Hong Kong Hang Seng Index (HSI), and EUROSTOXX 50 Index. The maximum pre-tax coupon rate is 3.75% per annum.
For the “376th ELS,” if the closing prices of all underlying assets are at least 65% of the initial reference price on the monthly income payment evaluation dates, investors receive a pre-tax monthly return of 0.3125% (up to 3.75% annually). However, if the condition is not met, no monthly income is paid.
Due to the step-down structure, early redemption and maturity redemption opportunities occur every six months. If the closing prices of all underlying assets are at least 95% (6 months), 90% (12 months), 85% (18 and 24 months), and 80% (30 months) of the initial reference price on the early redemption evaluation dates, early redemption occurs, and investors receive their principal back. If the closing prices are at least 65% at maturity (36 months), the maturity redemption condition is met, and principal repayment is made.
There is no knock-in range, but if any underlying asset is below 65% of the initial reference price at maturity, principal loss will occur.
All ELS offered this time are 3-year maturity, principal non-guaranteed products with a minimum subscription amount of 1 million KRW or more (increasing in units of 100,000 KRW).
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