NH Investment & Securities Launches 8 Public ELS Including Monthly Income Payment Type

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced on the 14th that it will募集 eight types of equity-linked derivative securities (ELS) until 1 p.m. on the 16th.

Among the募集 products, ELS 20772 is a monthly payment product expected to attract interest from investors seeking pension-type interest income every month.

ELS 20772 is a 3-year maturity product based on the S&P 500 Index, EuroStoxx 50 Index, and Samsung Electronics common stock. On each monthly income payment evaluation date, if the closing prices of all underlying assets are at least 70% of the initial reference price, a monthly payment yield of 0.45% (pre-tax, up to 5.40% annually) is paid. For example, with a subscription of 100 million KRW, 450,000 KRW (pre-tax) is paid monthly, with a maximum of 36 monthly payments during the investment period.

Additionally, on each early redemption evaluation date every six months, if the prices of all underlying assets are at least 95% (6 months), 90% (12 months), 85% (18 and 24 months), 80% (30 months), and 80% (36 months) of the initial reference price, automatic early redemption occurs with the principal plus the monthly payment yield. However, if any of the underlying assets have fallen below 55% of the initial reference price at any time and any asset is below 80% at maturity evaluation, principal loss of up to 100% may occur according to the maturity redemption conditions.

ELS 20774 has a first early redemption condition of 85%, making early redemption more likely compared to other products. It is a 3-year maturity product based on the S&P 500 Index, EuroStoxx 50 Index, and Hong Kong H Index (HSCEI). On early redemption evaluation dates, if all underlying asset prices are at least 85% (6, 12, 18 months), 80% (24, 30 months), and 75% (36 months) of the initial reference price, a pre-tax annual yield of 4.40% is paid. Even if early redemption does not occur, if none of the underlying assets have fallen below 50% of the initial reference price until maturity evaluation, a pre-tax annual yield of 4.40% is paid. However, if any underlying asset has fallen below 50% of the initial reference price and any asset is below 75% at maturity evaluation, principal loss of up to 100% may occur according to the maturity redemption conditions.

The募集 limit is 53 billion KRW in total. Subscriptions are available at all NH Investment & Securities branches and on the NH Investment & Securities online homepage, with a minimum subscription amount of 1 million KRW per product.