Equity Linked Fixed Coupon Note| DBS Treasures Private Client Hong Kong

Explore Equity Linked Fixed Coupon Note with DBS

At a glance

Linked to a wide selection of underlying assets (equites and exchange traded products (ETP)) from markets around the world

Denomination in 10 major currencies

Linked to a single or a basket of underlying assets

Flexible investment tenors of up to 2 years

Customisation on strike level, knock-out level, knock-in level, coupon frequency and annualised coupon

What is an Equity Linked Fixed Coupon Note (FCN)? FCN is a type of structured product which pays an investor a predefined fixed coupon on each coupon payment date until maturity, unless an early redemption event occurs. In the best case scenario, an investor will receive his principal notional and fixed coupons. In the worse case scenario, a client will receive fixed coupons but his principal notional will be converted to physical delivery of the underlying asset at a predetermined price (ie. strike price).

A protection feature called ‘knock-in’ may be added to a FCN. If the underlying asset has not closed below the knock-in level, the investor will receive his principal notional and fixed coupons without worrying about conversion to physical delivery of the underlying assets.

Why should you invest in a FCN?An investor with a stable or moderately bullish view in the underlying assets may consider FCN as it gives an opportunity for the investor to earn regular investment returns (coupons) without buying the underlying assets at the prevailing market price.

How does a FCN work?

Underlying Assets	Basket of Stock A and Stock B
Strike Level	95% of Initial Executed Price
Tenor	6 Months
Knock-out Level	100% of Initial Executed Price
Knock-out Type and Frequency	End of Period, Monthly
Knock-in Level	--
Coupon Rate and Frequency	12% p.a., Monthly

*Worst performing underlying asset is the underlying asset with the lowest performance amongst a basket of underlying assets. The performance of each underlying asset is calculated as the final level against the initial level.

Coupon Payment
Based on the parameters above, the annualised coupon is payable monthly at the end of each observation, an investor will receive such coupon every month until maturity unless an early redemption occurs.

Early Redemption Event
On each monthly observation period, if both Stock A and Stock B closes at or above the Knock-out Level, the FCN will be early redeemed by the Issuer and the investor will receive his principal notional and respective annualised coupon for the period. The FCN is considered fully redeemed and contractual obligations will cease.

Subject to no early redemption event, on final fixing date, both Stock A and Stock B’s closing prices are above the Strike Level, an investor will receive cash settlement of the principal notional and final annualised coupon.

Subject to no early redemption event, on final fixing date, if one or both of the stocks close below the Strike Level, an investor will receive physical delivery of the worst performing underlying asset at the Strike Level together with payment of the final annualised coupon. Investor will take further risk on the mark-to-market value of the delivered underlying asset should the prevailing market price continues to drop. In the worst case scenario, the investor may lose the entire principal notional.

Underlying Assets	Basket of Stock A and Stock B
Strike Level	95% of Initial Executed Price
Tenor	6 Months
Knock-out Level	100% of Initial Executed Price
Knock-out Type and Frequency	End of Period, Monthly
Knock-in Level	90% of Initial Executed Price
Knock-in Type	Daily Close
Coupon Rate and Frequency	12% p.a., Monthly

Knock-in Event
Daily observed during the knock-in observation period, if any of the underlying assets closes below the Knock-in Level, a Knock-in Event is deemed to have occurred.

Payout scenario 1 - subject to no early redemption event and no knock-in event, an investor will receive cash settlement of the principal notional and final annualised coupon OR
Payout scenario 2 - subject to no early redemption event but knock-in event has occurred and if on final fixing date, both Stock A and Stock B’s closing prices are at or above the Strike Level, an investor will receive cash settlement of the principal notional and final annualised coupon.

Subject to no early redemption event but knock-in event has occurred and if on final fixing date, one or both of the stocks close below the Strike Level, an investor will receive physical delivery of the worst performing underlying asset at the Strike Level together with payment of the final annualised coupon. Investor will take further risk on the mark-to-market value of the delivered stock should the prevailing market price continues to drop. In the worst case scenario, the investor may lose the entire principal notional.

Point to Note
Scenarios above are indicative and for illustration purposes only and do not represent future performance of a FCN. Refer to product offering documentation for comprehensive illustrations and full risk disclosures.

Please reach out to your Relationship Manager (RM) if you are interested to understand more.

Risk Disclosures and Important NotesFCNs are structured products which involve derivatives. Do not invest in it unless you fully understand and are willing to assume the risks associated with it. If you are in any doubt about the risks involved or would like to learn more about investment alternatives to this product, you may clarify with your Relationship Manager (RM) or seek independent professional advice.

A FCN is not principal protected and is not equivalent to a time deposit and is not protected by the Deposit Protection Scheme in Hong Kong. In the worst case scenario, an investor may lose the entire principal notional and all potential investment returns.

Investment involves risks. An investor will be subjected to, including but not limited to, credit risks of the Issuer and the underlying assets, market risks, mark-to-market risks and liquidity risk where no secondary market is available. Losses may be incurred as well as profits made as a result of buying and selling investment products.

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

Information contained in this website has not been reviewed by the Securities and Futures Commission (SFC) or any regulatory authority in Hong Kong.

This website is provided by DBS Bank (Hong Kong) Limited. The products represented within this website are intended for Hong Kong investors and not intended for distribution or use by any person in any country or region where the distribution or use of this material is restricted and would not be permitted by law or regulation. If you are outside of Hong Kong, we may not be authorised to offer or provide you with the products and services available through this website in the country or region you are located or resident in.

Explore Equity Linked Fixed Coupon Note with DBS

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