HSBC Malaysia has launched its latest structured investment offering investors exposure to equity markets in Australia, China, South Korea and Taiwan.
The Asian Growth Linked FRNID (floating rate negotiable instrument of deposit) is a four-year capital-protected MYR-denominated income product linked to a basket of four Asia Pacific indices, the Hang Seng China Enterprises Index, Kospi200, MSCI Taiwan and the S&P/ASX200 Index.
The product, which uses a snowball strategy, pays a guaranteed coupon of 4% in the first year. On each subsequent anniversary there is a potential coupon of 5.5%, payable if all of the indices are at or above 106% of their initial strikes. If on any observation date, the level of any component index is below 106% of its initial level, the coupon will not be paid for that period. In the subsequent year, if the closing levels of all the component indices are at or above 106% on the relevant observation date, the investor will receive the coupon for that period along with any previously unpaid coupons. At maturity, investors will receive initial capital along with the final coupon payment, if any.
The minimum investment is MYR65,000 ($21,000) and the closing date is 26 October.
This product is available now in Recent Additions (Malaysia).