Eugene Investment & Securities Announces Public Offering of Lizard Step-Down ELS

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 7th that it will offer a total of 2 billion KRW worth of Lizard Step-down ELS Type 1 through public subscription until 2 PM on the 9th.

The ‘365th ELS’ being offered this time is a 3-year maturity step-down structured principal non-guaranteed product. It is based on the KOSPI200 Index, Standard & Poor's 500 Index (S&P500), and EUROSTOXX50 Index as underlying assets, and the pre-tax annual return is 5.2% for early redemption, maturity redemption, and lizard redemption, all the same.

The ‘365th ELS’ provides opportunities for early redemption and maturity redemption every 6 months according to the step-down structure. First, on the early redemption evaluation date, 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, allowing a pre-tax return of 15.6%. The minimum subscription amount for this public offering product is 1 million KRW.

There are also two opportunities for lizard redemption. First, if early redemption does not occur and during 6 months none of the underlying asset prices fall below 85% of the initial reference price, a coupon of 2.6% pre-tax (annualized 5.2%) is paid on the first early redemption evaluation date. Next, if during 12 months none of the underlying asset prices fall below 75% of the initial reference price, a coupon of 5.2% pre-tax (annualized 5.2%) is paid on the second 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, said, “The 365th ELS being offered this time is designed with a lizard step-down structure that is highly preferred by customers, and by setting the second lizard barrier at 75%, it is a product that increases the possibility of early redemption within one year.”

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