Hi Investment & Securities Offers Up to 15.9% Return on ELS Public Offering

Published 09 Mar.2020 10:20(KST)

[Asia Economy Reporter Park Jihwan] HI Investment & Securities announced on the 9th that it will offer two types of Equity-Linked Securities (ELS) totaling 6 billion KRW by 1 PM on the 13th.

HI ELS No. 2131 is a 3-year maturity, semi-annual automatic early redemption ELS based on the KOSPI 200 index. On the automatic early redemption evaluation dates, if the closing prices of all underlying assets are at least 95% (6 months, 12 months), 90% (18 months, 24 months), and 85% (30 months, 36 months) of the initial reference price, it provides a maximum return of 13.50% (4.50% per annum).

Even if the redemption conditions are not met until maturity, if none of the underlying assets have fallen below 60% of the initial reference price (based on closing price) during the investment period, the initially offered return will be paid. However, if the redemption conditions are not met until maturity and any of the underlying assets have fallen below 60% of the initial reference price (based on closing price) during the investment period, losses may occur according to the maturity redemption conditions.

The HI ELS No. 2132, offered during the same period, is based on the KOSPI 200 index, the Hong Kong Hang Seng Index (HSI), and the EUROSTOXX 50 index. It is a 3-year maturity, semi-annual automatic early redemption ELS. On the automatic early redemption evaluation dates, if the closing prices of all underlying assets are at least 90% (6 months, 12 months), 85% (18 months, 24 months), 80% (30 months), and 65% (36 months) of the initial reference price, it provides a maximum return of 15.90% (5.30% per annum).

At maturity, if the closing prices of all underlying assets are at least 65% of the initial reference price, the initially offered return will be paid. However, if any of the underlying assets fall below 65%, principal loss may occur according to the maturity redemption conditions.