KB Securities, KOSPI 200-Samsung Electronics-linked ‘profit-referenced upward trend’ ELB recruitment

KB Securities announced on the 4th that it will raise 'return-referenced upward price-linked derivative bond (ELB)' with a maturity of one year, using KOSPI 200 and Samsung Electronics [005930] as underlying assets, in three rounds until the 30th.

For profit reference, the rising ELB's profit is determined by applying the rising participation rate to the rising rate of the underlying asset if the closing price of the underlying asset does not exceed the pre-determined knock-out barrier during the investment period. On the other hand, if the knockout barrier is exceeded even once, a pre-determined rate of return is applied regardless of the price of the underlying asset at maturity.

Knockout barrier refers to a condition in which the effect of an option expires immediately or the rate of return is confirmed when the price of the underlying asset reaches a certain predetermined level (barrier) when trading derivatives.

The first recruitment begins on the 28th of last month and runs until the 6th, the second recruitment takes place from the 4th to the 13th of this month, and the third recruitment takes place from the 23rd to the 30th.

The first offering product, 'KB able ELB No. 415', uses KOSPI 200 as the underlying asset, and the knockout barrier is 136% of the initial base price and the upward participation rate is 100%. If a knockout does not occur, a rate of return of 0.00% per year up to 36.00% per year before tax is applied depending on the rate of increase in the underlying asset, and if a knockout occurs, a rate of return of 2.00% per year before tax is applied. The fundraising amount is 5 billion won.

'KB able ELB No. 416' uses Samsung Electronics as the underlying asset. The knockout barrier is 137% of the initial base price and the increase participation rate is 100%. If a knockout does not occur, a rate of return of 0.00% per year up to 37.00% per year before tax is applied depending on the rate of increase in the underlying asset, and if a knockout occurs, a rate of return of 3.00% per year before tax is applied. The fundraising amount is 15 billion won.

In the second round, No. 420, which uses KOSPI 200 as the underlying asset, and No. 421, which uses Samsung Electronics as the underlying asset, will be recruited.

An official from KB Securities said, “This product is a principal payment type ELB designed to pursue profits from increases within a certain range while considering the risk of decline in the underlying assets.” He added, “We will continue to provide financial products with a variety of structures that reflect market conditions and customer investment demands.”