Belgian bank KBC is offering a fifth tranche of Amaryllis to retail investors in Hong Kong, available in both Hong Kong (series 34) and US (series 35) dollar tranches.The short-term callable notes are issued by KBC’s Cayman-domiciled company, have a maximum term of one year, and are linked to a basket of stocks comprising: Bank of Communications, China Mobile (Hong Kong), China Life Insurance Company and China Petrol & Chemical Company. The maximum return is 18.6% over one year.
After two months, a fixed coupon of 3.1% 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 subsequent two-monthly periods, if the closing prices of all the shares are at or above 87.5% of their respective initial prices, the potential coupon for the corresponding quarter will be 3.1%; 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 above 87.5% of their initial price, then capital is returned with a 3.1% coupon. However, if any stock is below this level, then investors receive physical delivery of the worst performing share.
This example is in Hong Kong dollars, US dollar terms 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.
The subscription period runs until 23 March via a number of local distributors including Bank of China, Dah Sing, Mevas Bank and Shanghai Commercial Bank.
Click here to see a brochure for this product.
