NH Investment & Securities announced on the 20th that it will launch a step-down type public equity-linked securities (ELS) product, which is the first in the industry to use individual Japanese stocks as underlying assets.
A total of 13 types, including the 'Japanese individual stock-based ELS 23708', will be collected until 4 p.m. on the 24th. Professional investors will close on the 27th, and the issuance date is scheduled for the 28th.
ELS 23708 is a step-down early redemption type with a maturity of 3 years, based on Tokyo Electron and Mitsubishi Heavy Industries. If the underlying asset price is at least 85% (6 and 12 months), 80% (18 and 24 months), or 75% (30 months) of the initial reference price on the early redemption evaluation date, a revenue of 14.50% (pre-tax) per annum will be paid and the product will be redeemed early.
Even if early redemption does not occur, on the maturity redemption date, if any of the underlying assets is at least 70% of the initial reference price until the maturity evaluation date, or if it has not fallen below 30% during the investment period, a pre-tax maturity redemption revenue of 43.50% will be paid.
However, if any of the underlying assets have fallen below 30% of the initial reference price, and at maturity evaluation any of them are below 70%, up to 100% of the principal loss may occur according to the maturity redemption conditions.