Products & Services

Structured Product

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Expand your investment options to enhance returns.

What is a Structured Product?

Structured Product are short-term derivative instruments that share the characteristics of both fixed income and equity securities. The notes yield relatively high coupon rate compared to other standard fixed income, depending on the value of its underlying equity. In the case of Thai ELN (equity linked note) and RELN (reverse equity linked note), the underlying assets are stocks registered in the SET 50 index. In addition, other structured notes such as ELN-Q offer cash settlement and enable foreign stocks or ETFs as the underlying assets.

Based on the qualification of hybrid instruments for fixed income and equity securities, Structured Note exposes investors to default risk same as investing in fixed income securities. All Structured Notes are issued by DBS Vickers Securities (Thailand) Co., Ltd (DBSV). DBSV has received a credit rating of AAA from TRIS’ latest review on Jun, 2018. DBSV is a wholly owned subsidiary of DBS Bank Singapore. Furthermore, these products are supported by professional teams of the Derivative Investment Division of DBS Bank. DBS Bank has been awarded “Safest Bank in Asia” for five years from 2019 to 2013, from global finance magazines and ranked fifth on “World Strongest Bank” by Bloomberg magazine. The credit rating of DBS Bank is at “AA-“ by Standard & Poor’s (S&P).

Types of Structured Product

Equity Linked Note (ELN)

ELN has the feature of a zero-coupon bond. Thus, investors will gain benefit in the form of discount. The note returns par value in cash at the maturity date if the price of underlying equity remains above or equal to the strike price level on the fixing date. However, if the underlying equity is valued at lower than the strike price level, the notes will return par value in the form of underlying shares at the strike price level.

Reverse Equity Linked Note (RELN)

RELN is a short-term derivative instrument with an interest, investing in underlying shares indicated in a contract instead of cash. When the note reaches its maturity, the investor will receive the proceed back in the form of shares equal to the strike price level at the fixing date. However, if the price rises above the strike price level, the investor will be returned the interest plus the underlying shares in the form of cash, determined from the strike price level. This means the investor have an opportunity to sell the shares at the strike price level, which offers higher price than the market at the issued date, and still secure the extra interest.

Advantages of ELN and RELN

An interesting feature that should be considered for ELN and RELN is a relatively high return for investors who hold cash. An expectation of a price drop of a stock soon can encourage an investor to invest in ELN with that stock as the underlying asset. ELN offers the investor greater return than deposit rate, while waiting to invest later. Meanwhile, the investor will be able to buy the stock at a lower specified price when its share price drops to the set level. On the other hand, an investor who has already bought a stock can sell the stock at a higher specified price or receive return if the higher price is not reached, by transacting in a RELN.

Ways Structured Product can enhance returns

  • Provide returns in the form of a discount or yield.
  • Able to buy a stock at a lower price in the future through ELN.
  • Able to sell a stock at a higher price in the future through RELN.

Underlying Asset

  • Stocks in SET50
  • Company stocks with high reputation

Qualifications to invest in Structured Product

Juristic person

with any one of the qualifications, as follow:

  • Shareholders’ equity of over Baht 100 million in the last audited financial statements of the company.
  • Maintain investments in listed securities or future contracts in TFEX of over Baht 20 million.

Individuals

and their spouse with any one of the qualifications, as follow:

  • Net worth from Baht 50 million upward, not including the value of the main residence.
  • Annual income of over four million Baht.
  • Investments in listed securities or future contracts in TFEX of over Baht 10 million.

Commission & Fee

For retail investors and non-institutional investors


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