This week's product wrap covers structures with strike dates between January 1-13, 2018. Some of the structured products reviewed include a Societe Generale product linked to a one-stock index in France, a BNP Paribas gold-linked note in Belgium and a fund-linked deposit in Poland. Products in the US market stood out for their relatively low sales volumes, while Citi was active in both China and Taiwan. In Japan, SBI Securities sold a two-year security linked to the Next Funds Nikkei 225 Leveraged Index ETF to retail investors.

EUROPE

One hundred and fifteen structured products distributed across eight different jurisdictions struck in Europe during the first two weeks of 2018.

SG Issuer, the issuance vehicle of Societe Generale, launched a 10-year structured note linked to the performance of the Solactive TOT Index in France. The index, which is published in euros and based on 45.96 at the close of trading on the start date, October 20, 2017, is a one-stock index that replicates the performance of the Total share after adjusting for a synthetic dividend of 2.48 points. The product is listed on the Luxembourg Stock Exchange for an issued amount of €30m.

Also in France, Louis Capital Markets, a global independent agency broker-dealer offering services in cash equities, equity derivatives, commodities, currencies and fixed-income for institutional clients, collaborated with Amundi for the launch of Cap Rendement No. 3. The four-year structure is linked to the Eurostoxx 50 and can be redeemed early on each semi-annual observation date, providing the index is at or above its initial level. In that case the product offers 100% capital return plus a coupon of 1.6% per semester elapsed.

BNP Paribas Fortis is distributing the USD Capped Note Gold 2024 in Belgium. The eight-year, capital protected medium-term note participates 100% in the LBMA Gold Price USD, the reference price of gold, expressed in dollars and recorded by the London Bullion Market Association, the international trade association which represents the London gold bars and money market and which registers the price of gold twice a day. The product sold US$9.8m (€8.1m) during the subscription period, and a one-off placement fee of 2% applies.

In Sweden, Handelsbanken issued Aktieindexobligation Hållbarhet Global Extra 137AG, a four-year capital protected MTN which participates 110% in the positive performance of the Solactive Sustainable Development Goals World Index, subject to six-month backend averaging. The product is issued at 110%.

Alior Bank launched the second tranche of Inwestycja Rynków Wschodzących in Poland. The three-year deposit participates [90-110]% in the positive performance of the Blackrock Global Emerging Market Bond Fund. A commission of 2.5% applies.

NORTH AMERICA

Seventy-seven structured products struck in North America during the period. They were all targeted at the US market.

UBS Financial Services introduced Trigger Phoenix Autocallable Optimisation Securities in the US. The unlisted registered note sold US$730,000 and is linked to the iShares MSCI Brazil Capped ETF, which invests in securities that are traded and quoted in non-US currencies on non-US markets. The estimated initial value of the securities as of the trade date is $9.65 and an underwriting discount of $0.15 per security applies.

Also in the US, Barclays collected $525,000 for its Index-Linked Notes, which are linked to the Barclays Trailblazer Sectors 5 Index, a rule-based proprietary index tracking a dynamic notional portfolio selected from a universe of 13 exchange-traded funds that provide exposure to US equity sectors or fixed-income assets while targeting a portfolio volatility of 5%. The estimated value of the notes is US$957.70 per note and the agent's commission is set at 1.125%.

LATIN AMERICA

There were no structured products striking in the Latam region this week.

MIDDLE EAST & AFRICA

No new structured products struck in the Mea region this week.

ASIA PACIFIC

Six hundred and fifty-eight structured products struck in the Apac region during the first two weeks of this year. The products where issued across five markets, of which South Korea, with 462 products, was the most active, followed by Taiwan (158), China (14), Hong Kong (13) and Japan (11).

Daishin Securities issued ELS 7412 in South Korea, for which Kookmin Bank acts as third party distributor. The securities have a term of three years and are linked to a basket comprising the Eurostoxx 50, Hang Seng China Enterprises and Nikkei 225 indices. At maturity, the product offers 100% capital return plus a fixed 12.9% coupon, if the level of the worst performing index is at or above 70% of its strike level.

SBI Securities distributed Digital M20200110 to retail investors in Japan. The two-year security is linked to the Next Funds Nikkei 225 Leveraged Index ETF, which is managed by Nomura Asset Management and tracks the Nikkei 225 Leveraged ETF. The notes offer a fixed coupon of 11% pa for the first quarter of investment. The product, for which the bond was issued via Municipality Finance, collected JPY600m (US$5.3m) during the subscription period.

In Taiwan, Citi introduced the 30M EUR Memory Autocallable Range Accrual Note 037001002802 to the country's private banking investors. The 2.5-year unlisted registered note is linked to a basket comprising CSOP FTSE China A50 ETF (HKD), SPDR S&P 500 ETF Trust and the Eurostoxx 50 and is issued via SG Issuer.

Citi was also active in China where it launched the Enhanced Yield 2018 S01H. The three-month wealth management scheme is linked to the appreciation of the US dollar relative to the Hong Kong dollar. If the US dollar has appreciated, the product pays a coupon of 5.30% pa. Otherwise the coupon is set at 1.40%.

Bank of China issued a six-month step-up deposit in Hong Kong. The product, which can be called by the issuer on April 9, 2018, is linked to the interest rate and pays a fixed coupon of 0.95% pa in the first quarter and 1% pa for the second quarter of the investment. By comparison, the interest rate for a six-month time deposit is currently 0.05% pa in Hong Kong. A minimum investment of HK$50,000 (US$6,391) applies.