Singapore's United Overseas Bank has launched the country's first equity-linked structured deposit since October.
Wealth Deposit Series 10 is a five-year growth and income product linked to a basket of five shares (comprising Keppel, DBS, Singapore Telecommunications, Oversea-Chinese Banking and CapitaLand Limited).
It pays a fixed 2.8% coupon at the end of the first year, and a 0.9-1.25% coupon (to be determined at the strike) in subsequent years.
For the growth element, the performance of the best-performing share with reference to its initial level will be recorded annually (floored at a minimum of 0%), and then removed from the basket.
At maturity, it returns capital plus between 20% and 28% participation (to be determined at strike) in the average of the annual performances, minus the sum of the fixed annual coupons.
This product appears in Recent Additions (Singapore).