Societe Generale, the first issue group to introduce structured certificates (SCs) in Asia on the Singapore Exchange S68 securities market (SGX-ST), has announced the launch of Asia’s first US equity stock-linked SCs.
According to its release on Nov 19, this yield enhancement structured product will consist of US stocks including a selection of the Magnificent Seven.
The new SCs linked to US underlyings will be listed on the SGX-ST from Dec 2.
The certificates are linked to single US stocks for a one-year maturity period, with the original amount invested at risk. The certificates are not deposits placed with Societe Generale.
The release notes that investors can potentially enjoy regular distributions at a defined rate and receive the original amount invested at maturity, subject to certain conditions on the underlying stock price movement.
Additionally, if the underlying stock rises above a certain upper threshold, the certificate will be redeemed by the issuer before its maturity date. If it falls below a certain lower threshold, investors can potentially elect to receive physical delivery of the underlying shares at expiry.
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The range of SCs issued by Societe Generale Group will be launched in regular series and open to eligible investors for subscriptions via distributors including United Overseas Bank U11 (UOB), UOB Kay Hian, Maybank Securities and Phillip Securities.
Serene Cai, head of securities trading at SGX Group says: “The US market is drawing significant investor interest, and we are excited to welcome Societe Generale’s listing of structured certificates linked to the US Magnificent Seven stocks.”
