KIKO Step Down - KO

KIKO Step Down-KO is an additional feather of KIKO ELN. The knock-out level is designed to reduce monthly, which is the best option for a higher-return investment strategy on an underlying stock that moves in a narrow frame (Slightly Bearish) or low volatility.

KIKO Step Down-KO gives a higher monthly return than KIKO ELN. However, the return is base on the structure noted conditions. This ELN is suitable for an investor who wants to allocate their investments to generate short-term holdings with high returns.

Why KIKO Step Down - KO

  • Monthly reduced Knock-Out levels can create opportunities for early redemption, create and opportunities for reinvesting at lower price points.
  • An opportunity for higher return during a market sideways.
  • Offer monthly yield return differs from bond yields in which return payment 2-4 times per year.

Who is suitable for KIKO Step Down - KO?

  • Investors with a risk tolerance who want to generate high returns.

Maximum profit and loss for KIKO Step Down - KO

  • Highest Profits = Yield depending on your chosen risk-level
  • Highest Losses = Standard Investment in the stock market when receiving the stock back at Strike Price

Calculation Examples

After the investor has opened an ELN account, the first thing investor needs to know before starts investing in ELNs must be the prices and yields of our products. Investors can follow up on the indicative price sheet of KIKO Step Down - KO and seek additional advice from the investment advisor.

Pricing Sheet

Pricing Sheet: KIKO Step Down KO

Trade Date

10 Mar. 2023

Strike Level (%)

100%

Issue Date

14 Mar. 2023

Notional Amount

30,000,000 Baht

Valuation Date

12 Sep. 2023

Settlement Method

Physical / Cash Delivery

Maturity Date

14 Sep. 2023

No. of holding days

184 Days

Observe Date

11 Apr. 2023

Yield Payment Date

17 Apr. 2023

11 May.2023

15 May. 2023

12 Jun. 2023

14 Jul. 2023

12 Jul. 2023

14 Jul. 2023

10 Aug. 2023

15 Aug. 2023

12 Sep. 2023

14 Sep. 2023

 

Underlying Spot Price (THB) Knock-in Price (THB) Knock-out Price (THB) Strike Level (%) Strike Price (THB) Annualized Yield (Before Tax) Number of shares for delivery
AAA 10.00 8.00
Period 1 10.20
Period 2 10.10
Period 3 10.00
Period 4 9.90
Period 5 9.80
Period 6 10.00
100% 10.00 12.00% 3,000,000

 

Remark:
Spot Price is the AAA share close price in the day before (10 March 2023). The example price sheet will only be use for calculation reference. It is not the actual price that investor will get. Knock-in level, Knock-out level, Strike level, Annualized yield, and Issue price 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 (10 March 2023)

Assume you choose AAA stock at 100% Strike level, Notional amount of 30 million Baht, and spot price of 10 Baht.

Strike Price (100% of Spot Price)

10.00 Baht

Notional Amount

30,000,00 Baht

Knock-out Price (102-98% of Spot Price and down KO 1%)
10.20 Baht
(Period 1)		 10.10 Baht
(Period 2)		 10.00 Baht
(Period 3)		 9.90 Baht
(Period 4)		 9.80 Baht
(Period 5)		 10.00 Baht
(Period 6)

Knock-in Price (80% of Spot Price)

8.00 Baht

No. of Shares that will be delivered

3,000,000 Share (30,000,00 /10)

Annualized Yield (Before Tax)

12%

Return (Before tax)

300,000 Baht [30,000,000 × (12%/12)]

No. of holding days

184

KO price will be adjusted down for each draw and at Valuation Date KO price will be adjusted to the same strike price.

 

2. Issue Date (14 March 2023) is Trade Date 2 Working Days

Money will be transfer to CIMBS account for buying KIKO Step Down KO

Notional Amount

30,000,000 Baht

 

3. Observe Date is viewing yield date 2 Working Days

Observe Date is the price viewing date to determine the return that investors will receive every 1 month until the Valuation Date, the investor may receive different returns in each scenario. Giving an example of 4 cases as follows.

Case 1 ( 8.00 < AAA < 10.00)
Knock-in < Spot Price < Knock-out
The stock price does not occur KO Event and KI Event
during Observation date (until Valuation Date).

Investors receive 30,000,000 Baht in cash and
Monthly Return of 6 month 1,800,000 Baht (300,000 × 6)

Case 2 (AAA ≥ 9.90)
Spot Price ≥ Knock-out
Early redemption event taken when the stock price does occur KO Event in the fourth month of Observation date.

Investors receive 30,000,000 Baht in cash and
Monthly Return of 4 month 1,200,000 Baht (300,000 × 4)

Case 3 (8.00 But AAA ≥ 10.00)
KI Event but Spot Price ≥ Strike Price
The stock price does occur KI Event at Observation date but equal or higher than Strike Price at Valuation Date

Investors receive 30,000,000 Baht in cash and
Monthly Return of 6 month 300,000×6 total 1,800,000 Baht

Case 4 (8.00 and AAA <10.00)
KI Event and Spot Price < Strike Price
The stock price does occur KI Event during Observation date and lower than Strike Price at Valuation Date.

Investors receive 3,000,000 Shares and in cash odd lot and
Monthly Return of 6 month 300,000×6 total 1,800,000 Baht

 

4.Valuation Date (12 September 2023)

The valuation date is the final date to summarizing the returns that investors will receive but if the stock price does occur KO Event (example in Case 2), the investor will receive a return according to an early redemption date

 

5. Maturity Date (14 September 2023)

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.