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

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 24th that it will offer a total of 2 billion KRW worth of multi-lizard type step-down ELS 1 series until 2 PM on the 26th.

The newly offered "362nd ELS" is a 3-year maturity principal non-guaranteed product based on the KOSPI200 Index, Standard & Poor's 500 Index (S&P500), and Nikkei 225 Index (NIKKEI225). The pre-tax annual return is the same at 5.4% for early redemption, maturity redemption, and lizard redemption.

The "362nd ELS" provides opportunities for early redemption and maturity redemption every 6 months according to the step-down structure. First, if the closing prices of all underlying assets are at least 90% of the initial reference price at the early redemption evaluation dates (6 months, 12 months), 85% (18 months), 80% (24 months), and 75% (30 months), early redemption occurs. If at maturity evaluation (36 months) the closing prices are at least 65%, the maturity redemption condition is met, yielding a pre-tax return of 16.2%. The minimum subscription amount for this offering is 1 million KRW or more (increasing in units of 100,000 KRW).

Additionally, there are 3 lizard redemption opportunities over 18 months. 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 during the first 6 months, a coupon of 2.7% pre-tax (annualized 5.4%) is paid at the first early redemption evaluation date. If the prices have never fallen below 80% during the first 12 months, a coupon of 5.4% pre-tax is paid at the second early redemption evaluation date. Finally, if the prices have never fallen below 75% during the first 18 months, a coupon of 8.1% pre-tax (annualized 5.4%) is paid at 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 will occur. Kim Kyuhwan, Head of Financial Products at Eugene Investment & Securities, stated, "The 362nd ELS is a product that increases the possibility of early redemption by providing 3 lizard redemption opportunities over 1 year and 6 months."

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