Currency Linked Investments

A Currency Linked Investment ("CLI") is a dual currency investment involving a currency option which confers on DBS the right to repay the principal amount and interest at maturity in the linked currency. All or part of the interest received on the Currency Linked Investment represents the premium on the currency option. Currency Linked Investment is subject to foreign exchange fluctuations, which may affect the return of your investment. Exchange controls may also be applicable to the currencies your investment is linked to. You may incur a loss on your principal sum in comparison with the base amount initially invested.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

Tailored to your choice of currency pairs, conversion rate and tenor

Earn potentially higher returns on the principal amount invested with the risks undertaken

How does CLI workAssuming the AUD/HKD spot rate is trading at 6.1200 and you invest HK$500,000.

Step 1

Choose your investment currency: HKD

Step 2

Choose your linked currency: AUD

Step 3

Select a conversion rate: 6.0600
(the rate which you are comfortable in exchanging your investment currency for the linked currency)

Step 4

Choose a tenor: 1 Month (e.g. 33 days)

Based on your chosen currency pair, conversion rate, and tenor, the Bank determines that the interest rate is 5.0% p.a.On the fixing date, the prevailing exchange rate (fixing rate) will be compared against the conversion rate to determine whether you will be repaid the maturity proceeds in the investment currency or the linked currency.If you are to be repaid in the linked currency, the conversion rate will be used to convert the maturity proceeds.1 month later on the fixing date:

Scenario 1 AUD strengthens against HKD*

Fixing Rate	6.1500
Conversion Rate	6.0600

Compared to the conversion rate 6.0600, the AUD/HKD fixing rate is 6.1500, which is higher than the conversion rate at the fixing time on the fixing date, you will receive your principal investment + 1 month’s interest of 5.0% p.a. in HKD on maturity.

= HK$500,000 + (HK$500,000 x 5.0% x 33 / 365)
= HK$500,000 + HK$2,260.27
= HK$502,260.27

*You will receive the aggregate of the principal amount and the interest in the original currency when AUD has strengthened against HKD to a level equal to or greater than the conversion rate at the fixing time on the fixing date.

Scenario 2 AUD weakens against HKD

Fixing Rate	5.9700
Conversion Rate	6.0600

Compared to the conversion rate 6.0600, the AUD/HKD fixing rate is 5.9700, which is lower than the conversion rate at the fixing time on the fixing date, you will receive your principal investment + 1 month’s interest of 5.0% p.a., converted to AUD at the conversion rate of 6.0600 on maturity.

= AUD [(HK$500,000 + HK$2,260.27) / 6.0600]
= AUD 82,881.23

Scenario 3 The Bank becomes insolvent or defaults on its obligations

You may get nothing back and suffer a total loss of your principal investment amount if the bank becomes insolvent during the tenor of the CLI or defaults on its obligations under the CLI.

All figures and rates used above are indicative and for illustration purposes only and do not represent future performance of a CLI . Please refer to product offering documentation for comprehensive illustrations and full disclosures.

Risk Disclosures and Important Notes

Investment in this product is subject to the credit risk of the Bank.

Currency Linked Investments (“the Product”) is a structured product involving derivatives. The investment decision is yours but you should not invest in the Product unless the Product is suitable for you having regard to your financial situation, investment experience and investment objectives.

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

The risk of loss in the Product can be substantial. Such loss may offset the interest earned on the deposit and may even result in losses in the principal amount of the deposit, especially where the underlying currency experiences depreciation or weakens during the deposit period. You must be prepared to risk the interest that might have otherwise earned on money invested as deposit.

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. The above information is not comprehensive. 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.

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