Hi Investment & Securities Launches Two ELS Products Offering Up to 4% Annual Returns

[Asia Economy Reporter Park Jihwan] HI Investment & Securities announced on the 25th that it will publicly offer two types of equity-linked securities (ELS) totaling 6 billion KRW by 1 PM on the 29th.

HI ELS No. 2423 is a 3-year maturity, early redemption type ELS with quarterly evaluations based on the KOSPI 200 Index, Hong Kong Hang Seng Index (HSI), and EUROSTOXX 50 Index as underlying assets. On automatic early redemption evaluation dates, if the closing prices of all underlying assets are at least 95% (4 months), 90% (8 months), 87% (12 months), 87% (16 months), 85% (20 months), 85% (24 months), 80% (28 months), 80% (32 months), and 65% (36 months) of the initial reference price, it pays a maximum return of 12.06% (4.02% 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 is paid; however, if any underlying asset falls below 65%, principal loss may occur according to the maturity redemption conditions.

HI ELS No. 2424 is a 3-year maturity, semi-annual early redemption type lizard ELS based on the KOSPI 200 Index, S&P 500 Index, and EUROSTOXX 50 Index as underlying assets. On automatic early redemption evaluation dates, if the closing prices of all underlying assets are at least 90% (6 months), 90% (12 months), 87% (18 months), 87% (24 months), 85% (30 months), and 80% (36 months) of the initial reference price, it pays a maximum return of 12.00% (4.00% per annum).

Even if early redemption conditions are not met, if from the initial reference price evaluation date (exclusive) to the first early redemption evaluation date (6 months), the closing prices of all underlying assets have never fallen below 85% of the initial reference price during that period, or if until the second early redemption evaluation date (12 months), the closing prices of all underlying assets have never fallen below 83% of the initial reference price during that period, a lizard return of 4.00% per annum is paid and the product is redeemed. At maturity, if none of the underlying assets have fallen below 57% of the initial reference price by the maturity evaluation date, a 4.00% return is paid. If any underlying asset has fallen below 57%, and at maturity evaluation any underlying asset is below 80%, principal loss may occur according to the maturity redemption conditions.

The 'lizard ELS' refers to a product structure that adds a lizard condition allowing early redemption of the product mid-term even if the ELS is not early redeemed during a downturn, similar to how a lizard escapes by shedding its tail in a crisis. The minimum subscription amount for the product is 1 million KRW or more in increments of 100,000 KRW.

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