HSBC Lanches Prime Notes For Singapore's Retail Investors

by Carla Johnson, Investors Offshore.com

25 August 2006

Prime Notes, the first principal-protected retail note in Singapore, was launched yesterday through HSBC bank.

For a minimum investment amount of S$5,000 (US$3,170), retail investors can benefit from the share performance of a basket of four Singapore blue chip stocks in the telecommunications, aviation, media and finance/banking sectors - namely Singapore Telecommunications Limited, Singapore Airlines Limited, Singapore Press Holdings Limited and DBS Group Holdings Ltd respectively.

Depending on the share performance of the four stocks, potential interest of up to 5.50% per annum for each of the three years will be paid out to investors at semi-annual intervals, when the share prices of the four stocks are evaluated. Prime Notes also provide investors with 100% principal protection over the three-year period if the Prime Notes are held to the scheduled maturity.

“With the introduction of Prime Notes, retail customers can now have an opportunity to diversify their investments and reap the benefit of potentially higher interests than time deposits, and enjoy peace of mind knowing that their investment is principal-protected at scheduled maturity," commented Tom Tobin, Head of Personal Financial Services with HSBC Singapore.

“Structured products of this nature are typically available only to high net-worth and corporate clients and usually require a large investment amount. In line with our efforts to bring greater choice and value to our customers, Prime Notes is designed to give retail investors access to potentially higher yields offered by structured investments for a relatively low investment amount," he added.

Prime Notes is available at all HSBC branches in Singapore until Wednesday 27 September 2006.

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