Equity Linked Deposit Account (ELDA)

Transcription

1 Equity Linked Deposit Account (ELDA)

2 2 Product Fact Sheet Equity Linked Deposit Account (ELDA) Are you looking for capital security?* Are you looking for a potentially higher return than normally associated with deposit accounts? Then look no further. In order to achieve these objectives HSBC Bank Malta p.l.c. has re-launched the 22nd issue of Equity Linked Deposit Account (ELDA). The ELDA is a deposit account providing the level of capital security one would expect from a normal bank account. This ELDA is denominated in euro (EUR). *Note: The value of the deposit will be paid back to you in full. However, if your base currency is different from the currency of your ELDA, you should be aware that the value of your deposit is subject to currency exchange rate fluctuations which may go down as well as up over the term of the account. Is this a limited offer? This is a new and strictly limited issue. Launch date is 22 February 2010 and closing date is 21 April The bank reserves the right to withdraw the offer at any time prior to the offer closing date. How does the ELDA work? The account will be opened for a period of up to 5 year term. Account is in EUR A minimum deposit of 2,500 is required to open an ELDA. There is no maximum deposit. The performance of the ELDA is linked to the performance of the following stock basket composition: AU Optronics Corporation Bank of China Ltd Barclays plc Danone S.A. Telefonaktiebolaget LM Ericsson Holcim Ltd Legal & General Group plc Pernod Ricard S.A. Rosneft Oil Company Wal-Mart Stores Inc Funds deposited from date of application up to the 6 May 2010 will attract gross interest relating to EUR savings account rate applicable as at the date of application. If account is held until maturity, the whole balance is paid back into your savings or current account. Valuations and Coupon Payments If on the 1st Valuation date, 26 April 2011, all the shares listed in the stock basket register an increase or are equivalent to the share price as on Strike Date, you will receive a coupon of 6.7% on the amount held in the deposit, and the account is closed. If the share price of any one of the companies forming part of the stock basket linked to the ELDA is less than the value as on Strike Date, no coupon is paid and the account is renewed for another year. If on the 2nd Valuation date, 26 April 2012, all the shares listed in the stock basket register an increase or are equivalent to the share price as on Strike Date, you will receive a coupon of 13.4% (equivalent to 6.7% p.a.) on the amount held in the deposit, and the account is closed. If the share price of any one of the companies forming part of the stock basket linked to the ELDA is less than the value as on Strike Date, no coupon is paid and the account is renewed for another year. If on the 3rd Valuation date, 26 April 2013, all the shares listed in the stock basket register an increase or are equivalent to the share price as on Strike Date, you will receive a coupon of 20.1% (equivalent to 6.7%p.a.) on the amount held in the deposit, and the account is closed. If the share price of any one of the companies forming part of the stock basket linked to the ELDA is less than the value as on Strike Date, no coupon is paid and the account is renewed for another year. If on the 4th Valuation date, 25 April 2014, all the shares listed in the stock basket register an increase or are equivalent to the share price as on Strike Date, you will receive a coupon of 26.8% (equivalent to 6.7% p.a.) on the amount held in the deposit, and the account is closed. If the share price of any one of the companies forming part of the stock basket linked to the ELDA is less than the value as on Strike Date, no coupon is paid and the account is renewed for another year. If on the final Valuation date, 27 April 2015, all the shares listed in the stock basket register an increase or are equivalent to the share price as on Strike Date, you will receive a coupon of 33.5% (equivalent to 6.7% p.a.) on the amount held in the deposit, and the account is closed. If the share price of any one of the companies forming part of the stock basket linked to the ELDA is less than the value as on Strike Date, the account is closed and you receive back your original deposit without any coupon.

3 3 When your ELDA is closed, the capital and coupon (if any) will be credited directly to your savings or current account held with us. As with all bank deposits, unless you advise us otherwise, withholding tax will be deducted from the interest/return paid on ELDA held by account holders who are resident in Malta at a rate fixed by the authorities. Summary of ELDA features Currency Capital security EUR Yes Minimum deposit EUR 2,500 Term Coupon Up to 5 years See explanation above Company name Bloomberg Code AU Optronics 2409 TT Bank of China 3988 HK Barclays BARC LN Danone BN FP Underlying Stock Basket Composition Ericsson ERICB SS Holcim HOLN VX Legal & General LGEN LN Pernod Ricard RI FP Rosneft OAO ROSN LI Wal-Mart Stores Inc WMT US Strike date 26 April 2010 Date of account opening 6 May st year 26 April nd year 26 April 2012 Valuation date 3rd year 26 April th year 25 April th year 27 April 2015 Maturity date of the account 7 May 2015

4 4 Example: On the 1 April 2010, customer applies for an ELDA 22 investing 50,000. On the 6 April 2010 (date of account opening), interest at 0.25%p.a (Savings rate) on the sum invested is paid out to customer i.e (exc. W/Tax) to a nominated demand deposit account. Scenario 1 On the 1st valuation 26 April 2011, the price of the stocks is compared to the price as on Strike Date to determine the performance. Companies Strike date value Valuation date Growth Performance AU Optronics Corporation TWD TWD % Bank of China Ltd HKD 3.75 HKD % Barclays PLC GBP GBP % Danone EUR EUR % Telefonaktiebolaget LM Ericsson SEK 72.1 SEK % = Holcim Ltd CHF CHF % Legal & General Group plc GBP GBP % Pernod Ricard SA EUR EUR % Rosneft Oil Company USD 7.77 USD % Wal-Mart Stores Inc USD USD % (values are for indicative purpose only) In the above scenario all stocks have registered a growth except for one which remained at the same price. On 6 May 2011, the account is closed and customer receives the full capital deposited in the ELDA of 50,000. A coupon of 6.7% is paid equivalent to 3,350 (exc. Tax)

5 5 Scenario 2 On the 1st Valuation date of 26 April 2011, the price of the stocks is compared to the price as on Strike Date to determine the performance. Companies Strike date value Valuation date Growth Performance AU Optronics Corporation TWD TWD % Bank of China Ltd HKD 3.75 HKD % Barclays PLC GBP GBP % Danone EUR EUR % Telefonaktiebolaget LM Ericsson SEK 72.1 SEK % = Holcim Ltd CHF CHF % Legal & General Group plc GBP GBP % Pernod Ricard SA EUR EUR % Rosneft Oil Company USD 7.77 USD % Wal-Mart Stores Inc USD USD % {values are for indicative purpose only) In the above scenario, one of the stocks did not register a growth. On 6 May 2011, no coupon is paid and the ELDA is renewed for another year.

6 6 On the 2nd Valuation Date of 26 April 2012, the price of the stocks is again compared to the price as on Strike Date to determine the performance. Companies Strike Date Value Valuation date Growth Performance AU Optronics Corporation TWD TWD % Bank of China Ltd HKD 3.75 HKD % Barclays PLC GBP GBP % Danone EUR EUR % Telefonaktiebolaget LM Ericsson SEK 72.1 SEK % Holcim Ltd CHF CHF % Legal & General Group plc GBP GBP % Pernod Ricard SA EUR EUR % Rosneft Oil Company USD 7.77 USD % Wal-Mart Stores Inc USD USD % (values are for indicative purpose only) In the above scenario all stocks have registered a growth. On 7 May 2012, the account is closed and customer receives the full capital deposited in the ELDA of 50,000. A coupon of 13.4% (equivalent to 6.7% p.a.) is paid equivalent to 6,700 (exc. Tax) This calculation is by way of explanation only and is an example of the potential returns on your deposit. You should note that the potential increase in the indicated share prices is subject to market conditions, values may fall or rise. All interest, gains and returns calculated in the above example are exclusive of withholding tax.

7 7 I am interested what should I do next? All you need to do to enjoy capital security and the potential high return, is visit one of our branches today and talk to a Financial Planning Officer. Benefits Funds are deposited in euro Great potential returns 100% capital security Linked to a stock basket made up of 10 large multinational companies No maximum deposit This is a bank deposit account, which is available to Maltese and international depositors. This Fact Sheet must be read in conjunction with the terms and conditions which you will find enclosed in the folder or which may be obtained from any HSBC Bank Malta p.l.c. branch.

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