Product wrap: SG tracks new Euronext climate index in France

Belfius Bank collected €453m with Active Interest 03/2027 in Belgium. The four-year steepener pays a fixed coupon of 3.35% pa during the first two years of investment. The following years, the annual coupon is equal to two times the difference between the 30-year EUR constant maturity swap (CMS) rate and the two-year EUR CMS rate, subject to a minimum of 2% and a maximum of 3.50%. At maturity, the product returns 100% of the nominal invested. The product is issued via the notes issuance programme of Belfius Financing Company. The cost at inception was 2.20%.

The product is the banks highest seller since September 2008, according to SRP data. Back then its DFN EUR 5,35% 2012-2014, a fixed rate callable (5.35% pa) gathered sales of €477m. Priips SRI: one out of seven.

BNP Paribas Wealth Management marketed Starlight 100 Net Zero Paris Aligned Select mars 2027 in France. The four- year certificate is linked to the S&P EuroUSAJapan 100 Net Zero 2050 Paris-Aligned Select 5% Decrement Index, which is designed to measure the performance of several equity securities drawn from the S&P Eurozone LargeMidCap, S&P United States LargeMidCap, and S&P Japan LargeMidCap that are collectively compatible with a 1.5ºC global warming climate scenario at the index level.

After two-years, the product is subject to early redemption, providing the index closes at or above its initial level. In that case, it offers 110% capital return. At maturity, if the index closes at or above its initial level, the product offers 120% capital return. Otherwise, it returns the nominal invested. The product is listed on the Luxembourg Stock Exchange for an issuance amount of €150,000. Priips Summary Risk Indicator (SRI): two out of seven.

Also in France, Hedios Patrimoine collaborated with Natixis for the launch of H Rendement 45. The 12-year unit-linked insurance plan is tied to the performance of the Euro iStoxx 70 Equal Weight Decrement 5% Index, which tracks the 70 largest constituents

Source: StructuredRetailProducts.com in terms of free float market capitalization from the Eurostoxx universe, whilst assuming a constant dividend mark down of five percent pa. If, on the quarterly observation date (starting after the first year) the index closes at or above 105% of its starting level, the product redeems early, and the investor receives 100% capital return plus a coupon of 2.50% for each quarter that has passed. At maturity, capital is preserved providing the index does not close below 70% of its starting value. The product is listed in Luxembourg. Priips SRI: five out of seven.

Banca March launched March Vida Multi Estructuras Emisión V 2022 Fijo+Bonus in Spain. The four-year, unit-linked deposit is targeted at the bank’s private clients and offers 100% capital return, plus a coupon of 4.80% at maturity. However, if the underlying Ibex 35 index closes at or above its starting price on 18 January 2027, a coupon of 9.60% is paid. A one-off entrance fee of 0.63% applies. This product is not listed. Priips SRI: one out of seven.

Consensus Asset Management introduced Kreditbevis Intrum 3 to its private clients in Sweden. The 4.9-year creditlinked note offers exposure to Intrum Justitia AB. Every six months, it pays a fixed coupon of 4.75% (9.5% pa). At maturity, if the underlying company has remained solvent, the product offers 100% capital return. However, if at any time during the investment term a credit event has taken place, the product stops paying the coupon and the return at maturity is diminished with the amount written off. A production fee of up to two percent is included in the purchase price. A distribution fee of maximum three percent will be paid by Nordea (the issuer). The product is listed at Nasdaq OMX Stockholm. Priips SRI: four out of seven.

Aktia distributed Osaketodistus Vihreän Siirtymän Raakaaineet II in Finland. The five-year autocall is linked to the Stoxx Europe 600 Basic Resources Index. It has annual knockout observations from 26 February 2024 onwards. If, on any of the validation dates, the index is at or above its initial level, the product offers 100% capital return, plus a coupon of 11% for each year that has passed. Capital is preserved if the index does not close below 50% of its starting price at maturity. Barclays is the issuer. The commission payable will be no more than four percent. The product is listed at Euronext Dublin. Priips SRI: six out of seven.

Santander launched Defined Return Plan 41 in the UK. The deposit has a six-year tenor and offers minimum 100% capital return, plus a coupon of 63%, providing the final level of the FTSE 100 Index is at or above its initial level. Otherwise, a coupon of 2.50% is paid. The final index level is calculated as the average of readings taken on each trading day from 7 August 2028 to 7 February 2029. Priips SRI: three out of seven.

MIDDLE EAST & AFRICA

Causeway Securities marketed issue eight from its Fundsmith 95% Capital Protected Note series in South Africa. The six-year investment offers 95% capital return plus 130% uncapped participation in the performance of Fundsmith Equity Fund Sicav T EUR Acc, subject to quarterly averaging throughout the term (24 readings). The underlying fund is actively managed and invests in global equities. As of 30

December 2022, it managed €8 billion of assets. The product is denominated in US dollars and issued via Morgan Stanley.

North America

Bank of Montreal introduced the US Fertilizer Callable Equity Income Notes, Series 3910 (CAD) (F-Class) in Canada. The five-year MTN offers access to three stocks from the chemicals sector: CF Industries, Mosaic Company, and Nutrien. A coupon of 1.265% (15.18% pa) is paid if all shares close at or above 70% on the validation date. The product redeems early if all shares close at or above 110% of their initial level. There is no selling concession fee. However, a fee of up to C$0.15 per note will be payable to Laurentian Bank Securities for acting as independent agent.

J.P. Morgan sold US$308m worth of Callable Fixed Rate Notes (48133PDZ3) in the US. The one-year registered note offers a fixed coupon of 2.50% per semester. At maturity, the product returns 100% of the nominal invested. There is an underwriting fee of US$1 for each note sold. Wells Fargo Securities acts as a selling agent.

Also in the US, Morgan Stanley collected US$84m with its one-year Callable Fixed Income Securities (61774TZB1) on a worst-of basket comprising Nasdaq 100, Russell 2000, and S&P 500. The product offers a fixed coupon of 11.12% pa, which is paid monthly. At maturity, if each index closes at or above 70% of their respective initial levels, the product

Source: StructuredRetailProducts.com offers 100% capital return. Agent’s commission and fees total 0.75% and the estimated value on the pricing date is US$987 per security.

Asia Pacific

Fubon Bank targeted 一年美金固定配息匯率型/Fixed Dividend Rate Structured Note at retail investors in Taiwan. The one-year US dollar denominated note is linked to the appreciation of the euro relative to the dollar. At maturity, if the EUR/USD is below 100%, the product offers 100% capital return, plus a coupon of 4.51% pa. Otherwise, the coupon is 4.5% pa.

IwaiCosmo Securities achieved sales of JPY330m (US$2.5m) with ノックイン債/KI M20250203 in Japan. The two-year autocall offers a fixed coupon of 3.31% pa, paid quarterly. It will redeem early if the Nikkei 225 closes at or above 105% of its starting level on the quarterly validation date. The product has an American barrier of 60%. Société Générale is the issuer.

HSBC Bank issued 股票掛鈎投資2023/Single DCDC ELI DFSIN2300078 in Hong Kong SAR. The unlisted daily cash dividend callable equity investment is linked to the share of Semiconductor Manufacturing International Corporation. The product has a daily autocall feature (starting from 28 February 2023) which is activated if the share closes at or above its initial level. At maturity, the product offers 100% capital return if the share closes above 82%. Otherwise, the investor participates 1:1 in the fall.