What is Bull PPN?
It is a structured note with embedded derivatives, having a maturity period of 3-6 months. The PPN designed to enhance opportunities for investors to generate high returns in a bullish market while limiting losses according to various levels of protection, such as 95-100%. With 100% protection, the investment amount is fully safeguarded, similar to a conventional debenture or deposit. By purchasing the Bull-PPN, investors will pay the investment amount based on its face value.Returns may be paid back in cash equivalent to the face value or according to the chosen protection level.
Why invest in Bull PPN?
- An investment that allows you to choose the level of principal protection and offers higher returns than general principal protection investment products.
- Increase short-term investment opportunities in environments where the stock market is rising.
- Investors who seek higher returns than fixed deposits or general debt instruments and are willing to take on risk.
- Highest Profits = equivalent to the interest returns and/or participation Rate, depending on the chosen risk level.
- Highest Losses = the principal amount refunded at the selected protection level.
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 Bull PPN and seeking additional advice from the investment advisor.
Pricing Sheet
| Pricing Sheet: Bull PPN | |||||||
|---|---|---|---|---|---|---|---|
| Trade Date | 14 November 2024 | Protection Level (%) | 100% | ||||
| Issue Date | 18 November 2024 | Notional Amount | 10,000,000 Baht | ||||
| Valuation Date | 15 May 2025 | Settlement Method | Cash Delivery | ||||
| Maturity Date | 19 May 2025 | No. of holding days | 182 Days | ||||
|
Underlying |
Spot Price (THB) | Strike Level (%) | Participation Rate (%) | Interest Rate (%) | |||
| AAA | 100 | 100% | 2.20% | 3.00% | |||
Remark:
Spot Price is the AAA share close price in the day before (13 November 2024). The example price sheet will only be use for calculation reference. It is not the actual price that investor will get. The protection level, 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 (14 November 2024) | |||
|---|---|---|---|
| Assume you choose AAA stock at Strike level 100%, Notional amount of 10 million Baht, and Spot price of 96 Baht. | |||
| Strike Price | 96 Bath (100% of Spot Price) | ||
| Spot Price | 96 Baht | ||
| Protection Level | 100% | ||
| Participation Rate | 2.20% | ||
| Interest Rate | 3.00% per year | ||
| 2. Issue Date (18 November 2024) is Trade Date 2 Working Days | |||
| Money will be transfer to account for buying Bull PPN | |||
| Notional Amount | 10,000,000 Baht | ||
| 3. Valuation Date (15 May 2025) is Maturity Date 2 Working Days | |||
| There are 3 possible cases for your return | |||
|
Case 1 ( AAA > 96 ) e.g. spot price 100 Baht Spot Price > Strike Price |
Investors receive (Before tax) 1. Cash at protection level at 10,000,000 Baht* and 2. Interest at 149,589.04 Baht** and 3. Participation at 9,166.66 Baht** *10,000,000 x 100% **10,000,000 x (3.00% x 182 / 365) ***10,000,000 x [2.20% x (100 - 96) / 96] |
||
|
Case 2 (AAA ≤ 96) AAA e.g. spot price 90 Baht Spot Price ≤ Strike Price |
Investors receive (Before tax) 1. Cash at protection level at 10,000,000 Baht* and 2. Interest at 149,589.04 Baht** *10,000,000 x 100% **10,000,000 x (3.00% x 182 / 365) |
||
| 4. Maturity Date (19 May 2025) | |||
| 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.