Belgian bank KBC is offering a third tranche of Amaryllis to retail investors in Hong Kong, available in both Hong Kong (series 29) and US (series 30) dollar tranches.
The launch follows popularity of the first tranche at the beginning of the summer, said the bank.
The short-term callable note is issued by KBC’s Cayman-domiciled company, has a maximum term of one year, and is linked to a basket of stocks comprising: Bank of Communications, China Mobile (Hong Kong), China Life Insurance Company and China Petrol & Chemical Company.
After three months, a fixed coupon of 3% is awarded and the product matures early returning 100% of capital if all the underlying stock prices are at least 100% of their initial prices.
Otherwise, the product continues and in quarters two and three, if the closing prices of all the shares are at or above 89% of their respective initial prices, the potential coupon for the corresponding quarter will be 3%; if not, the coupon will be 0%. Again, in these quarters, the product matures early and at par if all the underlying stock prices are at least 100% of their initial prices.
If the product runs to the twelfth month and all the stocks are above89% of their initial price, then capital is returned with a 3%coupon. However, if any stock is below this level, then investorsreceive physical delivery of the worst performing share.
This example is for series 29, US dollar term differ slightly.
There is a minimum investment of HK$10,000/US$1,000 and for every HK$50,000 (US$6,500) of notes bought, investors receive a HK$50 (US$6.5) Park’n’Shop gift coupon or cash equivalent.
Thesubscription period runs until 11 October via a number of localdistributors including Bank of China, Dah Sing, Mevas Bank and Shanghai Commercial Bank.
Click here to see a brochure for this product.
