Korea Investment & Securities said on the 15th it will launch 32 products of equity-linked bonds (ELB) and equity-linked securities (ELS).
TRUE ON ELS No. 427 is an online-only step-down product with SK hynix and NAVER as the underlying assets. The maturity is 3 years, and every 4 months it observes the prices of the underlying assets; if they are at least 90% (4 months), 85% (8 months), 80% (12 and 16 months), 75% (20 months), 70% (24 months), 65% (28 months), or 60% (32 months, maturity) of the initial reference price, it is redeemed with an annual return of 22.92%.
TRUE ELS No. 18381 is a stock-delivery ELS with NVIDIA and BROADCOM as the underlying assets. In a stock-delivery structure, if a loss occurs at maturity, the stock with the largest price drop among the underlying assets is delivered instead of cash. The product matures in 3 years, and every 6 months it determines early redemption; if the underlying assets are at least 90% (6 months), 80% (12 months), 75% (18 months), 70% (24 months), 65% (30 months), or 55% (maturity) of the initial reference price, it pays an annual return of 11.60% and is redeemed.
For both products, even if the early redemption conditions are not met, if during the investment period there is no underlying asset that falls below 45% and 30%, respectively, of the initial reference price, the agreed return is paid at maturity. However, if the underlying asset falls beyond that, losses of 40%–100% and 45%–100% of principal, respectively, may occur.
Meanwhile, the subscription periods for the newly launched products vary by product. For 21 TRUE ELS products, general retail investors can subscribe from today through the 16th, then there will be a two-day investor cooling-off period from the 17th to the 18th, and the subscription intent will be finalized between 10 a.m. on the 19th and the 22nd.
For 11 online-only TRUE ON ELS products, the subscription period runs from today through the 19th of this month. There will be a cooling-off period from the 22nd to the 23rd of this month, and subscription intent should be finalized from the 24th through 10 a.m. on the 26th.
An event commemorating the product launches will also run through the 21st of this month. If you answer the given quiz correctly, prizes such as Emart gift certificates, Olive Young and fried chicken vouchers will be offered by drawing. Details about the event can be found through the "TRUE ELS" KakaoTalk channel.