ING Wholesale Banking, Asia launched equity-linked notes in Hong Kong that will offer an 8.6% fixed coupon payable at the end of the first six months. The move by ING marks the third series of equity-linked notes from the financial services provider since January 2005.
The notes have a maximum tenor of two years with a semi-annual early redemption feature starting after six months.
The total return on the notes will depend on the share price performance of the four underlying blue-chip company stocks, which include China Life Insurance Company Limited, China Mobile (Hong Kong) Limited, Hutchison Whampoa Limited and PetroChina Company Limited. The minimum investment amount of the Notes is HK$10,000.
Unlike other equity-linked notes in the market which use the least performing stock to determine early redemption, ING offers an automatic feature where redemption is triggered when the sum of the returns of the two least performing stocks is equal to or above 0%.
An early redemption coupon will be payable if an automatic early redemption event occurs. The annual return of 21.20% per annum is achieved if the notes are automatically redeemed early after the first six months.
“The unique automatic early redemption feature of the notes is definitely an attractive proposition to investors who are looking for potential flexibility in tenor and higher return, but do not require absolute principal protection,” said Paula Ip, regional manager, retail sales and marketing, ING.
ING’s Bull’s-eye equity-linked notes will be open for subscription until February 22, 2006 and will be available through the branches of twelve banks and two brokerage houses in Hong Kong, including Asia Commercial Bank, Bank of China (Hong Kong), Bank of Communications (Hong Kong Branch), Chiyu Banking Corporation, CITIC Ka Wah Bank, Dah Sing Bank, ICBC (Asia), KGI Asia Limited, MEVAS Bank, Nanyang Commercial Bank, Shanghai Commercial Bank, Sun Hung Kai Investment Services Limited, Wing Hang Bank and Wing Lung Bank.