HSBC Bank Malaysia has launched its latest structured investment linked to the performance of a basket of four Asian technology hardware manufacturers: Hon Hai Precision Industry, Largan Precision, LG Display and Unimicron.
The Asian Hardware Linked FRNID is a four-year capital protected MYR denominated income product available for investment in two tranches offering potential coupons of 5.2% pa or 7% pa depending on share performance.
A coupon of 5.2% (7%) pa is payable every six months provided at least three of the four shares in the basket are at or above 100% (110%) of their initial value on the relevant observation date. In addition, if on any observation date, the closing prices of at least three shares in the basket are at or above the lock-in level of 120% (130%) of initial share price, then a lock-in event is triggered and all subsequent semi-annual coupons are locked-in at 5.2% (7%) pa regardless of future share performance thereafter. At maturity investors will receive initial capital along with the final coupon payment, if any.
The minimum investment is MYR65,000 ($20,000) and the closing date is 20 August.
This product is available now in Recent Additions (Malaysia).