Eugene Investment & Securities Launches Lizard Step-Down Type ELS Public Offering

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 15th that it will offer one type of Lizard Step-Down ELS with a total scale of 2 billion KRW until 2 PM on the 17th.

The '352nd ELS' is a 3-year maturity principal non-guaranteed product based on the S&P 500 Index, KOSPI 200 Index, and Euro Stoxx 50 Index. The pre-tax annual return is 7.6% for early redemption, maturity redemption, and lizard redemption.

This product provides opportunities for early redemption and maturity redemption every 6 months according to the step-down structure. First, on the early redemption evaluation dates, if the closing prices of all underlying assets are at least 90% (6 months, 12 months), 85% (18 months), and 80% (24 months, 30 months) of the initial reference price, early redemption occurs. On the maturity evaluation date, if the price is at least 75% (36 months), the maturity redemption condition is met, yielding a pre-tax return of 22.8%.

Two lizard redemption opportunities are also provided. Under the condition that early redemption does not occur, if the prices of all underlying assets have never fallen below 85% of the initial reference price for 6 months, a pre-tax coupon of 3.8% (annual 7.6%) is paid on the first early redemption evaluation date. If the prices of all underlying assets have never fallen below 75% of the initial reference price for 12 months, a pre-tax coupon of 7.6% is paid on the second early redemption evaluation date.

With a knock-in structure (knock-in barrier at 50%), even if the closing prices of the underlying assets are below 75% of the initial reference price on the maturity evaluation date, maturity redemption will occur if none of the underlying assets have fallen below 50% of the initial reference price until the maturity evaluation date. However, if these conditions are not met, principal loss will occur. The minimum subscription amount is 1 million KRW or more (increasing in units of 100,000 KRW).

Kim Kyuhwan, Head of Financial Products at Eugene Investment & Securities, said, “The 352nd ELS offers two lizard redemption opportunities, which increases the likelihood of early redemption and has the advantage of favorable returns.”

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