French investment bank Calyon has launched Fortune Notes Series 12 to retail investors in Hong Kong.
The Hong Kong dollar-denominated notes, issued out of the bank’s Guernsey arm, offer an income over a maximum term of ten months linked to a basket of four stocks comprising Sinopec, Hong Kong Exchanges and Clearing, PetroChina and China Life.After two months the product pays a fixed coupon of 2.6%. In subsequent two monthly periods if all shares are at above their strike levels then a coupon of 2.6% is also paid. The strike price is considered to be 85% of the initial level of each stock.
The product matures early if in any two-monthly period all underlying shares are at or above 95% of their initial level.
Capital is returned in full at maturity provided each stock is at or above its initial level. Otherwise investors receive physical delivery of the worst performing share in the basket.
The product will be available until 8 September with a minimum investment of HK$30,000 (US$3,858).
The notes are distributed via local banks, including Bank ofChina, Shanghai Commercial Bank and Wing Hang Bank.
Click here to see a brochure for this product.
