Equity-Linked Notes Product Catalogue Product Catalogue contains information on OCBC Securities...

Equity-Linked Notes

Product Catalogue

v 27 Dec 2016 1

v 27 Dec 2016

This document is solely for information and general circulation/discussion only and may not be published, circulated, reproduced or distributed in whole or in part to any other person without our written consent. This document should not be construed as an offer or solicitation for the subscription, purchase or sale of the securities mentioned herein. Whilst we have taken all reasonable care to ensure that the information contained in this publication is not untrue or misleading at the time of publication, we cannot guarantee its accuracy or completeness, and you should not act on it without first independently verifying its contents. Any opinion or estimate contained in this document is subject to change without notice. We have not given any consideration to and we have not made any investigation of the investment objectives, financial situation or particular needs of the recipient or any class of persons, and accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the recipient or any class of persons acting on such information or opinion or estimate. You may wish to seek advice from a financial adviser regarding the suitability of the securities mentioned herein, taking into consideration your investment objectives, financial situation or particular needs, before making a commitment to invest in the securities. You should consider carefully and exercise caution in making any trading decision whether or not you have received advice from any financial adviser. If you choose not to seek independent financial advice, please consider whether the trade or product in question is suitable for you. Opinions, conclusions and other information in this document that do not relate to the official business of OCBC Securities Private Limited and their respective connected and associated corporations shall not be understood as either given nor endorsed.

Disclaimer

2

Contents

v 27 Dec 2016

Page Number

Overview 4

• Issuers, Currencies, Tenors

Description of Notes and Illustrations 5 – 29

• Equity Linked Note (ELN) 5 – 8

• Knock-Out Equity Linked Note (KOELN)

9 – 12

• Reverse Equity-Linked Note (RELN) 13 – 16

• Fixed Coupon Note (FCN) 17 – 23

• Bonus Enhanced Note (BEN) 24 – 29

3

This Product Catalogue contains information on OCBC Securities Private Limited’s (OSPL’s) Equity-Linked Notes. All terms of the Notes may be customised by an investor upon request. Please check with your Trading Representative (TR) if you have any queries. Alternatively, you can contact our Customer Service at 1800 338 8688 or through email to [email protected]. Only Accredited Investors are eligible to trade in Equity-Linked Notes. For more information on Accredited Investors, please click here.

Overview

v 27 Dec 2016

Available Issuers This list will be expanded as OSPL increases the issuers we work with. • OCBC Bank • Societe Generale • BNP Paribas • Commerzbank • Royal Bank of Canada

Available Currencies • SGD, USD, EUR, GBP, CHF, JPY, HKD, CAD,

AUD

Available Tenors 1-12 months. Typical tenors for ELNs, KOELNs and RELNs are 1-3 months, FCNs are 3-6 months, BENs are 6-12 months.

4

mailto:[email protected]

http://portal.iocbc.com/products-services/Equity-Linked_Notes.html

Equity Linked Note (ELN)

Market View • An Equity-Linked Note is designed for clients with a stable or moderately bullish

market outlook

Description

• An Equity-Linked Note is issued at a discount to the Principal Amount

• The difference between the amount investors pay and the amount received at

maturity is the investor’s profit, and is reflected in the annualised yield

• If at Valuation Date the underlying stock price remains above or equal to the Strike

Price at inception, investors receive 100% of the Principal Amount at maturity

• If the underlying stock performs below the Strike Price, investors are exposed to the

stock’s negative performance

v 27 Dec 2016 5

Equity Linked Note (ELN)

Risks* • ELNs are not principal protected • Gains are limited to the yield of the

ELN • Investors are exposed to credit risk of

the issuer and the market movement of the underlying stock

• If underlying stock and ELN are in different currencies, investors are exposed to FX risk in the event of conversion

Benefits • Enjoy higher returns than a direct

investment in the underlying stock, in the event that the stock price trades sideways

• Buy the underlying stock at a discount to market price at inception

*Not exhaustive. Please consult the respective offer documents and term sheets for the risk factors

v 27 Dec 2016 6

•Choose your Stock, Strike price

•Place your order with Products Desk

Trade Date

•Client pays a discount to Principal Amount

Settlement Date

• Products Group sends your TR a daily list of stock names and yields.

• Please contact your TR for that list.

• We are able to customise terms and stocks to suit your needs.

If the stock price closes AT or ABOVE its Strike

Price on Valuation Date, client gets back Principal

Amount in cash

If the stock price closes below its Strike Price on

Valuation Date, client gets back Principal Amount in shares

2

Client pays a discount to Principal Amount and gets back 100% of Principal Amount on Maturity. The difference is the client’s profit, and is reflected in the quoted annualised yield.

Pick the stock you like, at the price you don’t mind collecting (the strike price).

Customise your own stock, tenor & strike price.

How does an Equity-Linked Note (ELN) work?

•Principal Amount: Cash or Shares?

Valuation Date

v 27 Dec 2016

1

7

Trade Date

Settlement Date

Valuation Date

Condition: Singpost closes

at or above strike on

Valuation Date. Outcome:

Client gets cash

How does an ELN work? – Example

Client pays SGD198,080 (99.04% of Note Price)

Issue Date

Maturity Date

Client receives SGD200,000 (Scenario )

or 142,196 Singpost shares

(Scenario )

1

2

1.43

1.4065

1.39

1.41

1.43

1.45

1.47

Trade Date Valuation Date

Scenario

Stock Price

Strike Price

1

1.39

1.4065

1.39

1.41

1.43

1.45

1.47


Scenario

Stock Price

Strike Price

2 Condition:

Singpost closes below strike on Valuation Date.

Condition: Client gets

shares

Client decides on stock, price

levels

COUNTER Singpost

Spot Price SGD1.45

Strike Price (97% of Spot Price)

SGD1.4065

Principal Amount

SGD200,000

Client pays SGD198,080

Yield pa 11.16%

Trade Date 21 Nov 2016

Settlement Date

25 Nov 2016

Issue Date 28 Nov 2016

Valuation Date

27 Dec 2016

v 27 Dec 2016 8

Knock-Out Equity Linked Note (KOELN)

Market View • A Knock-Out Equity-Linked Note is designed for clients with a stable or moderately

bullish market outlook

Description

• A Knock-Out Equity-Linked Note is issued at a discount to the Principal Amount

• The difference between the amount investors pay and the amount received at

maturity, or earlier if Knocked Out, is the investor’s profit, and is reflected in the

annualised yield

• If at Valuation Date the underlying stock price remains above or equal to the Strike

Price at inception, investors receive 100% of the Principal Amount at maturity

• If the underlying stock price trades at or above the Knock-Out Price, investors will

receive 100% of the Principal Amount early

• If the underlying stock performs below the Strike Price, investors are exposed to the

stock’s negative performance

v 27 Dec 2016 9

Knock-Out Equity Linked Note (KOELN)

Risks* • KOELNs are not principal protected • Gains are limited to the yield of the

KOELN • Investors are exposed to credit risk

of the issuer and the market movement of the underlying stock

Benefits • Enjoy higher returns than a direct

investment in the underlying stock, in the event that the stock price trades sideways

• Chance to realise profits early in the event market is bullish

• Chance to buy the underlying stock at a discount to market price


v 27 Dec 2016 10

•Choose your Stock, Strike Price, Knock-Out Price

Trade Date

•Client pays a discount to Principal Amount

Settlement Date

If the stock price closes AT or ABOVE its Strike Price on

Valuation Date, client gets back Principal Amount in cash

If the stock price closes below its Strike Price on Valuation Date,

client gets back Principal Amount in shares

2

3

Client pays a discount to Principal and gets back 100% of Principal on Maturity or earlier if there is a Knock-Out. The difference is the client’s profit.

Pick the stock you like, at the price you don’t mind collecting (the strike price).

Customise your own stock, tenor & strike price.

How does a KOELN work?


Valuation Date, if

Knock-Out has not

occurred

v 27 Dec 2016

If stock trades AT or ABOVE Knock-Out Price, client gets back Principal Amount in cash on Issue Date + 4 or Knock Out Date

+ 4, whichever is later

Anytime from Trade Initiation

to Valuation Date

1




11

Trade Date

Settlement Date

Valuation Date

How does a KOELN work? – Example

Client pays SGD198,080 (99.04% of Note Price)

Issue Date

Maturity Date

Note is not redeemed early. Client receives

SGD200,000 (Scenario ) or 142,196 Singpost shares

(Scenario )

2

3

1.43

1.495

1.4065 1.39

1.49


Scenario

Stock Price

Knock Out Price

Strike Price

2

1.39

1.4935

1.4065 1.39

1.49


Scenario

Stock Price

Knock-Out Price

Strike Price

3

Condition: Singpost trades at or above Knock-

Out Price. Outcome:

Client gets cash

Condition: No Knock-Out, Singpost closes

below Strike Price on Valuation Date.

Outcome: Client gets shares

Singpost trades at 1.495 after client purchases KOELN.

Client receives SGD200,000 and Note ends

(Scenario ) 1

1.495

1.4935

1.4065 1.39

1.49

Trade Date Anytime tillValuation Date

Valuation Date

Scenario

Stock Price

Knock Out Price

Strike Price

1

Condition: No Knock-Out,

Singpost closes at or above Strike

Price on Valuation Date.

Outcome: Client gets cash

Client decides on stock, price

levels

COUNTER Singpost

Spot Price SGD1.45


SGD1.4065

Knock-Out Price (103% of Spot Price)

SGD1.5225

Principal Amount

SGD200,000

Client pays SGD198,080

Yield pa 11.16%


Settlement Date

25 Nov 2016


Valuation Date

27 Dec 2016

v 27 Dec 2016 12

Reverse Equity Linked Note (RELN)

Market View • A Reverse Equity-Linked Note is designed for clients with a stable or moderately

bearish market outlook

Description

• A Reverse Equity-Linked Note is issued at par

• If, on Valuation Date, the underlying stock price closes above the Strike Price,

investors will receive the Principal Amount in cash, together with an Interest

Amount

• If the underlying stock performs below the Strike Price, investors receive the stock

deposited at inception, together with an Interest Amount

v 27 Dec 2016 13

Reverse Equity Linked Note (RELN)

Risks* • RELNs are not principal protected • Gains are limited to the yield of the

RELN • Investors are exposed to credit risk of

the issuer and the market movement of the underlying stock

Benefits • Unlock more returns from the stock,

especially during periods where the stock does not give dividends

• Sell your shares at a pre-agreed price in the event the market turns bullish


v 27 Dec 2016 14

•Choose your Stock, Strike price

Trade Date

•Client pays Principal Amount

Settlement Date

If the stock price closes ABOVE its Strike Price

on Valuation Date, client gets back Principal +

Interest Amount in cash

If the stock price closes AT or BELOW its Strike

Price on Valuation Date, client gets back

Principal in shares + Interest Amount in cash

1

2

Pick the stock you like, at the price you don’t mind selling at (the strike price). Customise your own stock, tenor & strike price.

How does a RELN work?


•Interest Payment

Valuation Date

Client pays by depositing shares of

the underlying as payment. For other ELN types, client has

to pay by cash

v 27 Dec 2016




15

Trade Date

Settlement Date

Valuation Date

Singpost closes above strike on Valuation Date. Client gets cash

+ interest

How does a RELN work? – Example

Client pays by depositing

135,000 shares of Singpost

Issue Date

Maturity Date

Client receives SGD205,537.50 + SGD2027.22 (Scenario ) or

135,000 Singpost shares + SGD2027.22 (Scenario )

1

1.53 1.5225

1.39

1.44

1.49

1.54


Scenario

Stock Price

Strike Price

1

1.39

1.5225

1.39

1.44

1.49

1.54


Scenario

Stock Price

Strike Price

2 Singpost closes below strike on Valuation Date.

Client gets shares + interest

Client decides on Stock, Spot and Strike

Prices 2

COUNTER Singpost

Spot Price SGD1.45


SGD1.5225

Principal Amount

135,000 shares of Singpost

Client pays 135,000 shares of Singpost

Yield pa 10%


Settlement Date

25 Nov 2016


Valuation Date

27 Dec 2016

Interest Amount: Principal* Strike Price*Yield

SGD2027.22

v 27 Dec 2016 16

Fixed Coupon Note (FCN)

Market View • A Fixed Coupon Note is designed for clients with a stable or moderately bullish

market outlook

Description

• A Fixed Coupon Note is issued at par. Clients receive regular coupon payouts until

the Note is redeemed

• Typical number of underlying stocks range from 2 to 4, typical tenor is 3-12 months

• If the underlying stocks perform at or above the Knock-Out levels, investors will

receive 100% of the principal in cash, together with the latest coupon payment.

Knock-In levels act as a safety valve; if underlying stocks never trade below these

levels, investors will never receive shares

• If underlying stocks perform below the Knock-In levels and Strike levels, investors

receive the worst performing stock at Final Valuation Date

• Knock-Out and Knock-In levels may be observed on a monthly or daily basis

v 27 Dec 2016 17

Risks* • FCNs are not principal protected • Gains are limited to the coupon of the

FCN • Investors are exposed to credit risk of

the issuer and the market movement of the underlying stocks

Benefits • Receive regular coupon payouts

regardless of outcome • Chance to get Knocked Out if

markets are bullish and capture upside by reinvesting directly in the market

• Chance to buy shares of the underlying stocks at Strike Prices, which are typically lower than for ELNs


v 27 Dec 2016

Fixed Coupon Note (FCN)

18

•Coupon Payment

•If No Early Redemption, Note continues

Valuation Date 1 and

2

On Valuation Date 1 or 2, If ALL stock prices close AT or

ABOVE their Knock Out prices, client gets back

Principal Amount + coupon payment & Note ends. If

not, Note continues.

If ALL stocks prices close AT or ABOVE their Knock-In prices

every day, client gets back Principal Amount + coupon

payment.

If ANY stock price closes BELOW its Knock-In price

during the tenor AND closes BELOW its Strike Price on

Final Valuation Date, client gets the shares of the worst

performer + coupon payment.

If ANY stock price closes BELOW its Knock-In price during the tenor BUT ALL stock prices close AT or

ABOVE their Strike Price on Final Valuation Date, client

gets back Principal Amount + coupon payment.

2

3

4

Collect FIXED COUPON every month regardless of outcome. Potential for early redemption every month. Knock-In levels are a safety valve: If closing prices never go below these levels, you will not be delivered shares. See If closing prices go below these levels, you can be delivered shares of the worst performer at strike price. See Pick the stocks you like and don’t mind collecting. Customise your own coupon, tenor & price levels.

How does a FCN work? (3 Months, Monthly Knock-Out, Daily Knock-In)


•Coupon Payment

Final Valuation

Date

2

4

v 27 Dec 2016

•Choose your Stocks, Strike levels and Knock-In levels

Trade Date


Settlement Date

1

19

Fixed Coupon Note (FCN) (Monthly Knock-Out, Daily Knock-In) Example of Scenario : Knock-Out occurs, Early Cash Redemption

COUNTERS DBS SING POST

(SPOST)

SEMBCORP IND (SCI)

Spot Prices / Knock-Out Prices

SGD 16.06

SGD 1.47

SGD 2.89

Strike Prices (95.25% of Spot Prices)

SGD 15.257

SGD 1.397

SGD 2.746

Knock-In Prices (85% of Spot Prices)

SGD 13.651

SGD 1.250

SGD 2.457

Trade Date 29 Jul 2016

Issue Date 12 Aug 2016

Valuation Dates

12 Sep 2016, 10 Oct 2016, 8 Nov 2016

Principal Amount

SGD200,000

Coupon per month

SGD1666.67

Return per month

0.8333%

Total Coupon , if no Early Redemption

SGD5,000

Yield pa 10%

16.06

15.257

13.651

13

14

15

16

Trade Date 12-Sep 10-Oct 08-Nov

Scenario

DBS Stock Price

DBS Knock Out Price

DBS Strike Price

DBS Knock-In Price

1

1.5 1.47

1.397

1.25 1.2

1.4


Scenario

SPOST Stock Price

SPOST Knock Out Price

SPOST Strike Price

SPOST Knock-In Price

1

2.91 2.89

2.746

2.457

2.3

2.8


Scenario

SCI Stock Price

SCI Knock Out Price

SCI Strike Price

SCI Knock-In Price

1

DBS SPOST SCI Knock-Out Outcome

Closing prices on 12 Sep

15.80 1.40 2.40 No Client receives SGD1666.67, Note

continues to 10 Oct

Closing prices on 10 Oct

16.06 1.50 2.91 Yes Client receives SGD200,000 +

SGD1666.67, Note is redeemed

1

v 27 Dec 2016

20


(SPOST)

SEMBCORP IND (SCI)


SGD 16.06

SGD 1.47

SGD 2.89


SGD 15.257

SGD 1.397

SGD 2.746


SGD 13.651

SGD 1.250

SGD 2.457



Valuation Dates

12 Sep 2016, 10 Oct 2016, 8 Nov 2016

Principal Amount

SGD200,000

Coupon per month

SGD1666.67

Return per month

0.8333%


SGD5,000

Yield pa 10%

14

16.06

15.257

13.651 13

14

15

16


Scenario DBS Stock Price

DBS Knock Out Price

DBS Strike Price

DBS Knock-In Price

2

1.43

1.47

1.397

1.25 1.2


Scenario SPOST Stock Price


SPOST Strike Price


2

2.55

2.89 2.746

2.457

2.3


Scenario SCI Stock Price

SCI Knock Out Price

SCI Strike Price

SCI Knock-In Price

2

Fixed Coupon Note (FCN) (Monthly Knock-Out, Daily Knock-In) Example of Scenario : No Knock-In, Cash Redemption at Maturity 2

DBS SPOST SCI Knock-Out Knock-In Outcome

Closing prices on 12 Sep 15.80 1.38 2.48 No No Client receives SGD1666.67,

Note continues to 10 Oct

Closing prices on 10 Oct 15.00 1.42 2.49 No No Client receives SGD1666.67,

Note continues to 08 Nov

Closing prices on 08 Nov 14.00 1.43 2.55 No No

Client receives SGD1666.67 and SGD200,000

Lowest closing prices on any trading day

14.00 1.38 2.48 No No

v 27 Dec 2016

21

KNOCK-IN, CASH REDEMPTION AT MATURITY: DBS never closes below 13.651, SPOST never closes below 1.25, BUT SCI closes below 2.457 on at least one trading day. Knock-In occurs. Client

continues to receive SGD1666.67 every month. On 8 Nov, DBS closes above 15.257, SPOST closes above 1.397, and SCI closes above 2.746. Client receives SGD200,000 and SGD1666.67 on maturity.


(SPOST)

SEMBCORP IND (SCI)


SGD 16.06

SGD 1.47

SGD 2.89


SGD 15.257

SGD 1.397

SGD 2.746


SGD 13.651

SGD 1.250

SGD 2.457



Valuation Dates

12 Sep 2016, 10 Oct 2016, 8 Nov 2016

Principal Amount

SGD200,000

Coupon per month

SGD1666.67

Return per month

0.8333%


SGD5,000

Yield pa 10%

3

15.5 16.06

15.257

13.651

13

14

15

16


Scenario

DBS Stock Price

DBS Knock Out Price

DBS Strike Price

DBS Knock-In Price

3

1.43

1.47

1.397

1.25 1.2

1.4


Scenario

SPOST Stock Price


SPOST Strike Price


3

2.77

2.89

2.746

2.457

2.3

2.8


Scenario

SCI Stock Price

SCI Knock Out Price

SCI Strike Price

SCI Knock-In Price

3 Knock-In occurs

Fixed Coupon Note (FCN) (Monthly Knock-Out, Daily Knock-In) Example of Scenario : Knock-In, Cash Redemption at Maturity



15.80 1.38 2.40 No No Client receives SGD1666.67, Note

continues to 10 Oct



continues to 08 Nov

Closing prices on 08 Nov

15.50 1.43 2.77 No No Knock-In is ‘Yes’, all stocks above

Strike Prices, Client receives SGD1666.67 and SGD200,000


15.00 1.38 2.40 No Yes

v 27 Dec 2016

22

KNOCK-IN, CASH REDEMPTION AT MATURITY: DBS never closes below 13.651, SPOST never closes below 1.25, BUT SCI closes below 2.457 on at least one trading day. Knock-In occurs. Client

continues to receive SGD1666.67 every month. On 8 Nov, DBS closes above 15.257, SPOST closes above 1.397, and SCI closes above 2.746. Client receives SGD200,000 and SGD1666.67 on maturity.


(SPOST)

SEMBCORP IND (SCI)


SGD 16.06

SGD 1.47

SGD 2.89


SGD 15.257

SGD 1.397

SGD 2.746


SGD 13.651

SGD 1.250

SGD 2.457



Valuation Dates

12 Sep 2016, 10 Oct 2016, 8 Nov 2016

Principal Amount

SGD200,000

Coupon per month

SGD1666.67

Return per month

0.8333%


SGD5,000

Yield pa 10%

15

16.06

15.257

13.651

13

14

15

16


Scenario

DBS Stock Price

DBS Knock Out Price

DBS Strike Price

DBS Knock-In Price

4

DBS is worst performer

1.43

1.47

1.397

1.25 1.2

1.4


Scenario

SPOST Stock Price


SPOST Strike Price


4

2.77

2.89

2.746

2.457

2.3

2.8


Scenario

SCI Stock Price

SCI Knock Out Price

SCI Strike Price

SCI Knock-In Price

4 Knock-In occurs

Fixed Coupon Note (FCN) (Monthly Knock-Out, Daily Knock-In) Example of Scenario : Knock-In, Shares Conversion at Maturity




continues to 10 Oct



continues to 08 Nov

Closing prices on 08 Nov

15.00 1.43 2.77 No No Knock-In is ‘Yes’, worst performer on 08 Nov is DBS. Worst performer is stock which has fallen the most.

Client receives SGD1666.67 and 200,000/15.257= 13,108 shares of

DBS


15.00 1.38 2.40 No Yes

4

v 27 Dec 2016

23

Bonus Enhanced Note (BEN)

Market View • A Bonus Enhanced Note is designed for investors with a stable or moderately bullish

market outlook

Description

• A Bonus Enhanced Note is issued at par

• There is only one Valuation Date and it occurs at the end of the tenor

• Typical number of underlying stocks range from 2 to 4, typical tenor is 6-12 months

• If underlying stocks perform at or above the Strike Prices, investors will receive 100% of

the Principal in cash, together with a Bonus Coupon or the gain of the Worst Performer,

whichever is higher

• If underlying stocks perform below the Strike Prices, investors receive shares of the

Worst Performer at Final Valuation Date

v 27 Dec 2016 24

Risks* • BENs are not principal protected • Gains are limited to the gains of Worst

Performer, if above Strike Prices • Investors are exposed to credit risk of

the issuer and the market movement of the underlying stocks

Benefits • Receive a Bonus coupon with no

cap, in the event the underlying stock prices are flat or move up

• Chance to buy shares of the underlying stocks at Strike Prices


v 27 Dec 2016

Bonus Enhanced Note (BEN)

25

•Choose your Stock(s), Strike level, tenor

•Place your order with Products Desk

Trade Date


Settlement Date

• For an idea, please refer to the daily indicative lists sent by Products Group.

• Please contact your TR for the lists.


If both stock prices close AT or ABOVE their Strike Prices on Valuation Date, client gets

back: Principal Amount + Bonus Coupon

OR Principal Amount + gain of Worst Performer,

whichever is higher.

If either stock price closes below its Strike Price on Valuation Date, client gets back Principal Amount in shares of the Worst

Performer.

How does a BEN work? (2 underlyings)


•Bonus coupon?

Valuation Date

v 27 Dec 2016

Gain from FLAT or UP markets! At the end of the tenor, if: Underlying stocks are FLAT or UP: Note pays out Bonus Coupon OR gain of Worst Performer, whichever is higher. See Underlying stocks are DOWN: Get shares of the Worst Performer at Strike Price. See

1 2

3

2

1

3

26

Bonus Enhanced Note (BEN) Example of Scenario : Bonus Coupon payout

COUNTERS SINGTEL SPH

Spot Prices SGD 3.74

SGD 3.71

Strike Prices (100% of Spot Prices)

SGD 3.74

SGD 3.71


Settlement Date 24 Nov 2016


Valuation Date 25 May 2017

Principal Amount SGD200,000

Coupon Amount SGD30,800

Bonus Coupon (Flat)

15.40%

3.80

3.74

3.50

3.60

3.70

3.80

3.90

4.00

Trade Date 25-May

Scenario

Singtel Stock Price

Singtel Strike Price

1

SINGTEL SPH Worst

Performer

Gain of Worst

Performer

Is Worst Performer at

or above Strike Price?

Is gain of Worst

Performer higher than

Bonus Coupon?

Outcome

Closing price on 25 May

3.80 3.71 SPH (3.71/3.71)-

1 = 0% Yes No

Client receives

SGD200,000 and Bonus Coupon of SGD30,800

1

3.71

3.50

3.60

3.70

3.80

3.90

4.00

Trade Date 25-May

Scenario

SPH Stock Price

SPH Strike Price

1

v 27 Dec 2016 27

Bonus Enhanced Note (BEN) Example of Scenario : Higher Bonus Coupon payout

4.40

3.74

3.50

4.00

4.50

Trade Date 25-May

Scenario

Singtel Stock Price


2

SINGTEL SPH Worst

Performer

Gain of Worst

Performer



Is gain of Worst


Bonus Coupon?

Outcome


4.40 4.50 Singtel (4.40/3.74)-1=17.647%

Yes Yes

Client receives SGD200,000 and higher

Bonus Coupon of SGD35,294

(17.647%)

2

4.50

3.71

3.50

4.00

4.50

Trade Date 25-May

Scenario

SPH Stock Price

SPH Strike Price

2



SGD 3.71


SGD 3.74

SGD 3.71







Bonus Coupon (Flat)

15.40%

v 27 Dec 2016 28

Bonus Enhanced Note (BEN) Example of Scenario : Shares Conversion

3.00

3.74

2.90

3.40

3.90

Trade Date 25-May

Scenario

Singtel Stock Price


3

SINGTEL SPH Worst

Performer

Gain of Worst

Performer



Is gain of Worst


Bonus Coupon?

Outcome


3.00 3.50 Singtel (3.00/3.74)-1=-19.786%

No No

Client receives 200,000/3.74 = 53,475 shares

of Singtel

3

3.50

3.71

3.40

3.90

Trade Date 25-May

Scenario

SPH Stock Price

SPH Strike Price

3



SGD 3.71


SGD 3.74

SGD 3.71







Bonus Coupon (Flat)

15.40%

v 27 Dec 2016 29

Equity-Linked Notes Product Catalogue Product Catalogue contains information on OCBC Securities...

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