Eugene Investment & Securities Special Public Offering of 2 Types of ELS

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 27th that it will offer a total of two types of ELS, including ‘Lizard Step-down Type ELS Series 1’ and ‘No Knock-in Step-down Type ELS Series 1’, until 2 PM on the 29th.

The ‘343rd ELS’ is a 3-year maturity lizard step-down type principal non-guaranteed product. It is based on the Standard & Poor’s 500 Index (S&P500), the Hang Seng China Enterprises Index (HSCEI), and the EURO STOXX 50 Index (EUROSTOXX50), providing early redemption and maturity redemption opportunities every six months, along with one lizard redemption opportunity. The pre-tax annual yield is 8.5% for both early and maturity redemptions, and the lizard redemption yield is also 8.5% pre-tax annually.

According to the lizard step-down structure, early redemption occurs if the closing prices of all underlying assets on the early redemption evaluation dates are at least 90% (6 months, 12 months), 85% (18 months, 24 months), and 80% (30 months) of the initial reference price. On the maturity evaluation date (36 months), if the maturity evaluation prices of all underlying assets are at least 65% of the initial reference price, maturity redemption is made with a pre-tax yield of 25.5%.

One lizard redemption opportunity is also provided. If early redemption does not occur within 12 months and the underlying asset prices have never fallen below 75% of the initial reference price, a pre-tax annual yield of 8.5% can be earned on the second automatic early redemption evaluation date. Although it has a No Knock-in structure, principal loss occurs if any of the underlying assets are below 65% of the initial reference price on the maturity evaluation date.

The ‘344th ELS’ is a 3-year maturity no knock-in step-down type principal non-guaranteed product with the same underlying assets as the ‘343rd ELS’. Early redemption and maturity redemption opportunities are provided every six months, with a coupon yield of 7.5% pre-tax annually.

This product features favorable early redemption conditions and a low knock-in barrier. Early redemption occurs if the closing prices of all underlying assets on the early redemption evaluation dates are at least 85% (6 months, 12 months) and 80% (18 months, 24 months, 30 months) of the initial reference price. With a knock-in barrier of 47.5%, maturity redemption at a pre-tax yield of 22.5% occurs if none of the underlying assets have fallen below 47.5% of the initial reference price until the maturity evaluation date (36 months), or if they have fallen below but all underlying assets are at least 75% of the initial reference price. If these conditions are not met, principal loss may occur.

Kim Kyuhwan, Head of Financial Products at Eugene Investment & Securities, said, “The 343rd ELS has the advantage of a high coupon rate of 8.5% and a lizard redemption opportunity,” adding, “The 344th ELS has a low first early redemption barrier of 85%, allowing for quick early redemption, and a knock-in barrier set at 47.5%, which reduces the possibility of loss.” The public offering size for each product is 2 billion KRW, with a minimum subscription amount of 1 million KRW (increasing in units of 100,000 KRW).

This content was produced with the assistance of AI translation services.