Eugene Investment & Securities Launches 3 Early Redemption Step-Down ELS Products

On the 26th, Eugene Investment & Securities announced that it will offer three types of early redemption step-down equity-linked securities (ELS) through public subscription until the 12th of next month.

The "458th ELS," an early redemption step-down product with monthly payments, is a 3-year maturity, principal non-guaranteed product based on the NIKKEI225, S&P500, and EUROSTOXX50 indices. Designed with a monthly payment structure, if the closing prices of all underlying assets are at least 65% of the initial reference price on the monthly income payment evaluation date, a pre-tax monthly return of 0.63% is paid. Early redemption evaluation dates occur every six months. Early redemption is executed if, on the evaluation date, the closing prices of all underlying assets are at least 95% (6 months), 90% (12 months), 85% (18 months), 80% (24 months), or 75% (30 months) of the initial reference price.

With a no knock-in structure, if on the maturity evaluation date (36 months) the closing prices of all underlying assets are at least 65% of the initial reference price, the principal is repaid at maturity. If any fall below 65%, principal loss occurs.

The "459th ELS," based on the S&P500 index and Tesla (TESLA), is also being offered. It is a 3-year maturity, principal non-guaranteed product that provides early redemption and maturity redemption opportunities every six months according to the step-down structure.

The "460th ELS" is a 1-year maturity, principal non-guaranteed product that offers early redemption and maturity redemption opportunities every three months. It is based on Tesla (TESLA) and NVIDIA. If, on the early redemption evaluation date, the closing prices of all underlying assets are at least 85% (3 months), 80% (6 months), or 70% (9 months) of the initial reference price, early redemption occurs. If the closing prices are at least 65% (12 months) on the maturity evaluation date, maturity redemption is executed, yielding a pre-tax annual return of 24%.

Both early redemption step-down ELS products (459th and 460th) adopt a knock-in structure. Even if the closing prices of the underlying assets are below 65% of the initial reference price on the maturity evaluation date, if none of the underlying assets have fallen below 30% for the "459th ELS" or 45% for the "460th ELS" during the evaluation period, maturity redemption is executed. Failure to meet these conditions results in principal loss.

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