NH Investment & Securities Launches 7 Public ELS Including Monthly Income Payment Type

[Asia Economy Reporter Lee Seon-ae] NH Investment & Securities announced that it will raise a total of 47 billion KRW through seven types of Equity-Linked Securities (ELS) from the 19th to 4 PM on the 23rd.

Among the products being offered, ELS 21062 is a monthly payment product expected to attract interest from investors seeking pension-style interest income every month.

This product is a 3-year maturity product based on the EuroStoxx50 index and Facebook Inc., listed on the U.S. Nasdaq market. On each monthly income payment evaluation date, if the closing prices of all underlying assets are at least 60% of the initial reference price, a monthly payment yield of 0.5875% (pre-tax, up to 7.05% annually) is paid. For example, with a subscription of 100 million KRW, 587,500 KRW (pre-tax) is paid monthly, with a maximum of 36 monthly income payments during the investment period.

Additionally, on early redemption evaluation dates every six months, if the prices of all underlying assets are at least 95% (6 months), 90% (12 months), 85% (18, 24 months), and 80% (30, 36 months) of the initial reference price, early redemption is automatically executed by adding the monthly payment yield to the principal. However, if any of the underlying assets have fallen below 50% of the initial reference price at any time and any asset is below 80% at maturity evaluation, principal loss of up to 100% may occur according to the maturity redemption conditions.

ELS 21065 has a relatively high possibility of early redemption with the first early redemption condition at 85%. It is a 3-year maturity product based on the S&P 500 index, EuroStoxx50 index, and KOSPI 200 index. On early redemption evaluation dates, if the prices of all underlying assets are at least 85% (6, 12, 18 months), 80% (24, 30 months), and 75% (36 months) of the initial reference price, an annual yield of 4.00% (pre-tax) is paid. Even if early redemption does not occur, if none of the underlying assets have fallen below 50% of the initial reference price until maturity evaluation, a 4.00% (pre-tax) annual yield is paid. However, if any underlying asset has fallen below 50% of the initial reference price and any asset is below 75% at maturity evaluation, principal loss of up to 100% may occur according to the maturity redemption conditions.

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