What is Bonus Note?
It is a structured note with a short-term maturity of 3-6 months that offers returns similar to equity investments. It differs from other structured note like Equity-Linked Notes (ELNs) that provide returns in the form of interest. The returns of Bonus Notes depend on the performance of the underlying stock, the investment period, the strike level, and the bonus rate chosen by the investor.Bonus Notes can enhance opportunities for returns on stocks that move within a range, without necessarily increasing or decreasing significantly. Investors also receive additional returns as agreed upon, and they increase the chance of receiving returns from the underlying stock without limitations, similar to direct investment in the underlying stock.
Why invest in Bonus Notes?
- Expand returns more than regular debt securities or short-term deposits with selectable risk levels.
- Can be customized for investment strategies.
- Suitable during unclear or sideways trending stock markets.
- Investors seeking high returns and able to tolerate risk.
- Highest Profits = Performance Gain or Bonus Rate depending on your chosen risk-level
- Highest Losses = Standard Investment in stock market when receive stock back at Strike Price
After the investor has opened an ELN account, the first thing investor needs to know before start investing in ELNs must be the prices and yields of our products. Investors can follow up on the indicative price sheet of Bonus Note and seeking additional advice from the investment advisor.
Pricing Sheet
| Pricing Sheet: Bonus Note | |||||||
|---|---|---|---|---|---|---|---|
| Trade Date | 5 February 2024 | Strike Level (%) | 100% | ||||
| Issue Date | 7 February 2024 | Notional Amount | 10,000,000 Baht | ||||
| Valuation Date | 5 August 2024 | Settlement Method | Physical / Cash Delivery | ||||
| Maturity Date | 7 August 2024 | No. of holding days | 182 Days | ||||
|
Underlying |
Spot Price (THB) | Strike Level (%) | Bonus Level (%) | Bonus Price (THB) | Bonus Rate (THB) | Number of shares for delivery | |
| AAA | 100 | 100% | 110% | 110 | 10.00% | 100,000 | |
Spot Price is the AAA share close price in the day before (2 February 2024). The example price sheet will only be use for calculation reference. It is not the actual price that investor will get. The Bonus rate and Strike level are the only factors that investor will get from the pricing sheet. (These factors do not depend on the spot price.)
When you start investing in ELN, we will call this date "Trade Date"
| 1. Trade Date (5 February 2024) | |||
|---|---|---|---|
| Assume you choose AAA stock at 100% Strike level, Notional amount of 10 million Baht, and Spot price of 100 Baht. | |||
| Strike Price | 100 Bath (100% of Spot Price) | ||
| Spot Price | 100 Baht | ||
| Bonus Rate (Before tax) | 10% | ||
| Bonus Price | 110 Baht (110% of Spot Price) | ||
| No. of Shares that will be delivered | 100,000 Shares (10,000,000 / 100) | ||
| Odd lot | Odd lot x Strike Price | ||
| 2. Issue Date (7 February 2024) is Trade Date 2 Working Days | |||
| Money will be transfer to account for buying BONUS NOTE | |||
| Notional Amount | 10,000,000 Baht | ||
| 3. Valuation Date (5 August 2024) is Maturity Date 2 Working Days | |||
| There are 3 possible cases for your return | |||
|
Case 1 ( 100 ≤ AAA <110 ) Strike Price ≤ Spot Price < Bonus Rate |
Investors receive 10,000,000 Baht and Bonus rate 1,000,000 Baht (before tax) (10,000,000 x 10%) |
||
|
Case 2 ( AAA ≥ 110 ) AAA Spot price 127 Baht Spot Price ≥ Bonus Rate |
Investors receive 10,000,000 Baht and Performance Gain 2,700,000 Baht (before tax) [10,000,000 x ((127.00 / 100.00) - 1)] |
||
|
Case 3 ( AAA < 100 ) Spot Price < Strike Price |
Investors receive 100,000 AAA Shares and odd lot cash (If there are any) |
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| 4. Maturity Date (7 August 2024) | |||
| Investors receive return according to the case in Valuation Date | |||
Overall Return
Disclaimer
The Structured Note is offered to High-Net-Worth investors (HNW), Ultra High-Net-Worth (UHNW) and institutional investors (II). It is a high-risk and complex product. The value of the Structured Note depends on uncertain factors. Investors may lose the principal in whole or part or receive lower-than-expected returns. Structured Notes do not have a secondary market for trading and have transfer restrictions as specified by the terms and conditions. Please understand the product's characteristics, the conditions of return, and the risks involved, and seek additional advice before making an investment decision.