Shinhan Financial Investment Industry's First ESG ELS Offering

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment announced on the 30th that it will publicly offer non-guaranteed and partial payment type 'ELS (Equity-Linked Securities) No. 20729 and 20730' each worth 5 billion KRW from the 31st until 1 PM on April 9.

The ELS being raised this time is the industry's first to use the S&P500 ESG Index as the underlying asset. The S&P500 ESG Index selects 295 stocks from the S&P500 components based on the S&P DJI ESG Scores. Stocks are composed by descending ESG scores up to 75% of the free-float market capitalization of each GICS industry group within the S&P 500.

'ELS No. 20729' is a 3-year maturity product linked to the S&P500 ESG Index (SPXESUP INDEX) that redeems early upon meeting specific conditions every 6 months. On early redemption evaluation dates, if the closing price of each underlying asset is at least 95% (6 months), 90% (12 months), 85% (18 months), 85% (24 months), 80% (30 months), or 65% (36 months) of the initial reference price, it pays an annual return of 4.0%. If the closing price of the underlying asset on the maturity evaluation date is below 65% of the initial reference price, principal loss may occur. Since the product's return is determined based on the price of the underlying asset, if the underlying asset does not meet the price conditions, principal loss (-35% to -100%) may occur, and all stated returns are pre-tax returns.

'ELS No. 20730' is a 1-year maturity, partial payment type product with 80% principal protection, linked to the S&P500 ESG Index (SPXESUP INDEX), that redeems early upon meeting specific conditions every 3 months. On early redemption evaluation dates, if the closing price of each underlying asset is at least 100% (3 months), 100% (6 months), or 100% (9 months) of the initial reference price, it pays an annual return of 4.0%. If early redemption does not occur and the closing price of the underlying asset on the maturity evaluation date is at least 100% of the initial reference price, returns are paid according to the increase rate (%) of the underlying asset. If below 100% of the initial reference price, losses up to -20% may occur depending on the decline rate of the underlying asset. Since the product's return is determined based on the price of the underlying asset, if the underlying asset does not meet the price conditions, principal loss (0% to -20%) may occur, and all stated returns are pre-tax returns.

The minimum subscription amount for these products is 1 million KRW, and subscriptions are available at Shinhan Financial Investment branches and online channels.

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