Structured Investments

Notes With Return of Principal on Maturity

Potential enhanced yield or capital gain from an underlying financial instrument while offering a return of some or all of the principal amount on maturity.

Notes with Return of Principal on Maturity are derivative instruments linked to financial instruments which usually include equities, market indices, ETFs, interest rates, currencies, or a combination of these. They offer a return of some or all of the principal amount on maturity, while investors can earn a potential enhanced yield or a potential capital gain in case their market anticipation on the underlying financial instrument is correct. Notes with Return of Principal on Maturity are usually issued by a financial institution, therefore investors are exposed to the issuer’s credit risks and the risk of the underlying financial instrument.

Notes with Return of Principal on Maturity are only recommended for investors with an appropriate risk appetite, financial situation, experience and objectives as they carry significant risks. The product may not be suitable for all types of investors. For more information on the features, benefits and risks of this type of investment, please contact your Relationship Manager.

Key Features

  • Enjoy a potential enhanced yield or a potential capital gain while offer a return of some or all of the principal amount on maturity.
  • Customize the product to suit investors’ needs.

Key Risks

  • Investors are subject to the risk of the fluctuation in the prices of the underlying financial instrument and other variables, such as, but not limited to, volatility, interest rates, currency and time, which may result in a loss of the original investment in case the notes offer a return of some but not all of the principal amount on maturity.
  • In the loss case scenario upon maturity, the notes offer a return of some of the principal amount. Therefore the exposure to the credit risk of the issuer remains.
  • Investors bear the credit risk of issuer, therefore they may lose all their invested principal in case of default of the issuer.

Important Notes:

DBS Bank (Hong Kong) Limited is not your investment adviser or acting in any fiduciary capacity to you. The above information is not and shall not be considered as investment advice. It does not constitute any offer or solicitation of offer to subscribe, transact or redeem any investment product. Investment involves risk. Past performances are not indicative of future performances. You should not rely on the above information alone to make any investment decision. You should carefully read the product offering documentation for detailed product information and risk factors prior to making any investment. If you have any doubt on this material or any product offering documentation, you should seek independent professional advice.

Note with Return of Principal on Maturity (the “Product”)is a structured product involving derivatives. The investment decision is yours but you should not invest in the Product unless DBS Bank (Hong Kong) Limited has explained to you that the Product is suitable for you having regard to your financial situation, investment experience and investment objectives.

The Product is NOT a protected deposit and is not protected by the Deposit Protection Scheme in Hong Kong. The Product is different from traditional time deposits and should not be treated as their substitutes.

The product is an illiquid instrument which is not tradable. Customers should therefore be prepared to hold this investment until the maturity date. Early redemption is not exposed to the issuer's credit risk.