Hi Investment & Securities, Public Offering of Two ELS Types Worth 5 Billion KRW

Published 04 May.2020 10:54(KST)

[Asia Economy Reporter Ji-hwan Park] HI Investment & Securities announced on the 4th that it will offer two types of equity-linked securities (ELS) totaling 5 billion KRW by 1 PM on the 8th.

HI ELS No. 2179 is a 3-year maturity, early redemption type ELS with quarterly evaluation, based on the KOSPI 200 Index, the Hang Seng Index (HSI), and the EUROSTOXX 50 Index. On automatic early redemption evaluation dates, if the closing prices of all underlying assets are at least 85% of the initial reference price (at 4, 8, and 12 months), 80% (at 16, 20, and 24 months), 75% (at 28 months), 70% (at 32 months), and 65% (at 36 months), it pays a maximum return of 21.06% (7.02% 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 rate is paid. However, if any of the underlying assets fall below 65%, principal loss may occur depending on the maturity redemption conditions.

HI ELS No. 2180, offered during the same period, is a 3-year maturity, semi-annual monthly payment automatic early redemption type ELS based on the Hang Seng China Enterprises Index (HSCEI), the Standard & Poor's (S&P) 500 Index, and the EUROSTOXX 50 Index. On each monthly coupon payment evaluation date, if the closing prices of all underlying assets are at least 60% of the initial reference price, a monthly coupon of up to 0.575% (6.90% per annum) is paid.

On automatic early redemption evaluation dates every 6 months after issuance, if the closing prices of all underlying assets are at least 95% (at 6 and 12 months), 90% (at 18 months), 85% (at 24 and 30 months), and 80% (at 36 months) of the initial reference price, the principal is paid.

Even if the redemption conditions are not met by maturity, if none of the underlying assets have fallen below 55% of the initial reference price during the investment period, the principal is paid. If any of the underlying assets have fallen below 55%, losses may occur depending on the maturity redemption conditions.