Description
SG European Range Trade – European Medium Term Note 6 Years
We are launching a European version (with SG) of the US Range / Income trades that appear on our secondary market focus section. Similarly to the US versions, this incorporates an index level range that determines the coupons paid. Indicatively, an 8% coupon is paid if the Eurostoxx 50 has continuously* traded in the range of between 50% and an upper range barrier of 150% of the initial level.
This product however has an added feature, if a coupon is lost in any year (i.e. the index has traded outside the range), this product has a memory feature that pays any previously lost coupons if the index moves back in range and stays there for any year. (Please call if you need further clarification of the memory feature)
Capital is at risk if the Eurostoxx 50 is lower than 50% of the initial level at maturity (European).
We would be looking to launch this in early September. We will be offering a ‘rolled-up’ version of this whereby coupons are accrued and paid at maturity, for CGT needs.
*Close of business
Example scenario illustrating coupon memory feature
