Eugene Investment & Securities Launches Multi-Barrier Step-Down ELS Public Offering

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 29th that it will offer a total of 2 billion KRW worth of a multi-lizard type step-down ELS 1 product until 2 PM on the 1st of next month.

The newly offered "355th ELS" is a 3-year maturity principal non-guaranteed product based on the KOSPI200 Index, Standard & Poor's 500 Index (S&P500), and EUROSTOXX50 Index. The pre-tax annual return is the same at 7.3% for early redemption, maturity redemption, and lizard redemption.

The "355th ELS" provides five early redemption opportunities every six months and one maturity redemption opportunity according to the multi-lizard step-down structure, and separately offers three lizard redemption opportunities over 18 months.

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, 24 months), or 80% (30 months) of the initial reference price, early redemption occurs. On the maturity evaluation date, if the price is at least 65% (36 months), the maturity redemption condition is met, yielding a pre-tax return of 21.9%.

For lizard redemption, if early redemption conditions are not met and the prices of all underlying assets have not fallen below 85% of the initial reference price during the first 6 months, a pre-tax coupon of 3.65% (annualized 7.3%) is paid on the first early redemption evaluation date. If the prices have not fallen below 80% during 12 months, a pre-tax coupon of 7.3% is paid on the second early redemption evaluation date. Lastly, if the prices have not fallen below 75% during 18 months, a pre-tax return of 10.95% is earned on the third early redemption evaluation date.

This is a No Knock-in structure, and if on the maturity evaluation date the closing price of any underlying asset is below 65% of the initial reference price, principal loss occurs. The minimum subscription amount for this offering is 1 million KRW.

Kim Kyuhwan, Head of Financial Products at Eugene Investment & Securities, said, "The biggest feature of the 355th ELS is the high possibility of early redemption due to the three lizard redemption opportunities provided."

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