Barclays is launching its first retail equity linked note in Asia, with the potential to generate an 18% return in 18 months from a basket of Hong Kong's blue chip real estate stocks. The UK-based bank is launching the product under the brand name "Innobond".
The performance of the first Innobond is linked to the share price of Cheung Kong, Hang Lung Properties, Henderson Land Development, Sun Hung Kai Properties, Swire Pacific "A" and Wharf Holdings. Early redemption of the notes, which are not principal protected, may happen at six, nine, 12 or 15 months at an annualised return of 12% if the share prices of all the stocks for the relevant valuation date are at, or above their respective strike prices.
Should this Innobond be held for 18 months and all the final prices of the stocks are at, or above their respective strike prices, investors will receive their principal investment plus 18% interest.
The notes were offered for public subscription on September 5. The offer period is expected to end on 23 September. Minimum investment is HK$50,000.