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UBS launches SUPER Notes XV linked to a basket of eight Hong Kong-listed companies
UBS launched SUPER Notes XV (Series No. 15a and 15b). The two tranches of equity-linked Notes fall due in 2007 and are linked to the performance of eight Hong Kong-listed companies.
The Notes, which have a tenor of two years and a fixed coupon of 7.0% for the first year, also offer the potential for mandatory early redemption after the first 18 months as well as a potential bonus coupon of 7% upon mandatory early redemption or at maturity.
Otherwise, the potential variable coupon is linked to the best performing share in the basket subject to a maximum of 7%.
The basket of stocks comprises: Bank of East Asia; Cathay Pacific Airways, Cheung Kong (Holdings); Henderson Land Development Holdings; HSBC Holdings; Hutchison Whampoa; Sun Hung Kai Properties and Swire Pacific - "A".
"SUPER Notes XV will be attractive to investors bullish on the share price performance of the companies included in the basket over the life of the Notes and who are seeking a fixed-rate coupon for the first year at a relatively high yield in the current low interest rate environment", noted Christopher F LEE, head of UBS's Equity Risk Management Intermediary desk.
"Denominated in US dollars or Hong Kong dollars, the two tranches are designed to cater for investors seeking to pay for and receive payment in those respective currencies", added Lee.
On the maturity date - expected to be in September 2007 - the Notes will be redeemed in cash at 100% of their principal amount or by delivery of shares in one of the companies. Whether they are redeemed in cash or by delivery of shares depends on the share price performance of the companies. The Notes are not principal protected.
The minimum purchase amount is HK$50,000 for the Hong Kong dollar Notes, and US$5,000 for the US dollar Notes. Investors may purchase the Notes in individual units of HK$50,000/US$5,000 but must purchase a minimum of HK$50,000/US$5,000.
Available for subscription by retail investors in Hong Kong until 2nd September, the Notes are being distributed by Standard Chartered Bank (Hong Kong); Sun Hung Kai Investment Services; Wing Hang Bank and Wing Lung Bank.
UBS's Equity Risk Management Products team was placed first in all nine equity categories in Asiamoney's inaugural structured products poll last year and UBS was named Equity Derivatives House of the year in Asiamoney's structured products poll in 2004 and 2005. UBS was also voted Overall Best Provider in the Equity category. In addition, Asia Risk and The Asset named UBS Equity Derivatives House of the Year for 2004.
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Hong Kong, 23 August 2005