Equity-Linked Notes (ELNs)

Earn interest while waiting for your ideal entry price

Why you will love this

Short-term investments that typically take just 1 to 12 months to mature

Gives you the opportunity to buy shares at a discount to market price in Singapore (at inception of the ELN)

Who is it for

Accredited Investors

Open an account

For local application

Apply at a branch with these supporting documents 

  1. For Singaporeans and Permanent Residents:

    • NRIC/SAF/SPF ID and Passport

    For Malaysians:

    • IC and Singapore Residence Pass (e.g. Employment pass) if applicable

    For Foreigners:

    • Valid Passport and Singapore Residence Pass (e.g. Employment pass) if applicable

  2. Provide us with the original or electronic copy of any of the following documents relflecting your name and address:

    • Phone bill
    • Bank statement
    • Income tax statement
    • CPF statement
    • CDP statement

Note: Document(s) must be dated no older than 3 months from date of application. If your mailing address is different from your residential address, please provide one document for each address.

Locate a branch

For overseas application

Mail in the completed application forms with copies of:  

  1. Required for all:

  2. Provide a copy of your identification:

    Bring your ID and and our application form to any of the authorised parties below to:
    1. Witness your signature on the form
    2. Certify true copy of your ID

    Authorised Parties

    • Notary Public
    • Advocates & Solicitors
    • Singapore Embassy


    For Singaporeans and Permanent Residents:

    • NRIC/SAF/SPF ID and Passport

    For Malaysians:

    • IC and Singapore Residence Pass (e.g. Employment pass) if applicable

    For Foreigners:

    • Valid Passport and SIngapore Residence Pass (e.g. Employment pass) if applicable

  3. Provide us with the original or electronic copy of any of the following documents relflecting your name and address:

    • Phone bill
    • Bank statement
    • Income tax statement
    • CPF statement
    • CDP statement

    Note: Document(s) must be dated no older than 3 months from date of application. If your mailing address is different from your residential address, please provide one document for each address.

  4. Mail it to us

    OCBC Securities Private Limited
    18 Church Street #01-00,
    OCBC Centre South,
    Singapore 049479

Customise your very own Equity-Linked Note

Pay a discount to Principal Amount and get back 100% of Principal Amount on Maturity. The difference is your profit, and this will be reflected in the quoted annualised yield. Pick the stock you like, at the price you don't mind collecting (the strike price). Customise your own stock, tenor & strike price.

Trade Date
Settlement Date
Valuation Date

Choose your Stock,
Strike price

Place your order with your
Trading Representative (TR)

Contact your Trading Representative (TR) for a daily list of stock names and yields.

We are able to customise terms and stocks to suit your needs.

You pay a discount
to Principal Account

Principal Amount:
Cash or Shares

If the stock price closes at or above its Strike Price on Valuation Date, you get back Principal Amount in cash

If the stock price closes below its Strike Price on Valuation Date, you get back Principal Amount in shares

OR

Spot Price

S$1.45

Strike Price (97% of Spot Price)

S$1.4065

Principal Amount

S$200,000

Client pays

S$198,080

Yield pa

11.16%

Scenario 1

Singpost closes at or above strike on Valuation Date.
Outcome: Client gets cash

Scenario 2

Singpost closes below strike on Valuation Date.
Outcome: Client gets shares

Stock Price

Strike Price

Key benefits of Equity-Linked Notes

Returns

Opportunity to earn higher returns than a direct investment in the underlying stock if the stock price trades sideways.

Earn interest while waiting for your entry price

Opportunity to buy shares at your ideal entry price (strike price) and earn interest while waiting.

Lock-in price

Lock in your target price of a share in advance with the ability to decide your strike price.

Flexibility

Flexibility to choose your preferred underlying shares, index, number of shares and strike price (conversion rate).

Potential risks of Equity-Linked Notes

Market risk

As the performance of an ELN is linked to the underlying shares, fluctuation in the value of the underlying shares can adversely affect the value of the ELN.

Credit risk

ELNs are backed by the issuer which issued the underlying shares. If the issuer defaults, investors may lose all or part of their investment.

Principal-at-risk

ELNs are not principal-protected. There is a risk that investors could lose part or their entire principal investment amount.

Liquidity risk

The secondary market is typically illiquid. Investors should not invest in an ELN unless they have sufficient funds to stay invested until maturity.

Start trading ELNs

Apply now

ELNs are only available for Accredited Investors.

Before you apply

Eligibility requirements

Accredited Investors only.

Frequently asked questions about Equity-Linked Notes
Common question
What is an Accredited Investor?

An Accredited Investor refers to:

(i) an individual --
(A) whose net personal assets exceed in value $2 million (or its equivalent in a foreign currency) or;
(B) whose financial assets (net of any related liabilities) exceed in value $1 million (or its equivalent in a foreign currency), where "financial asset" means --
(BA) a deposit as defined in section 4B of the Banking Act;
(BB) an investment product as defined in section 2(1) of the Financial Advisers Act; or 
(BC) any other asset as may be prescribed by regulations made under section 341; or 
(C) whose income in the preceding 12 months is not less than $300,000 (or its equivalent in a foreign currency);

(ii) a corporation with net assets exceeding $10 million iin value (or its equivalent in a foreign currency) as determined by --
(A) the most recent audited balance-sheet of the corporation; or 
(B) where the corporation is not required to prepare audited accounts regularly, a balance-sheet of the corporation certified by the corporation as giving a true and fair view of the state of affairs of the corporation as of the date of the balance-sheet, which date shall be within the preceding 12 months;

(iii) the trustee of such trust when acting in that capacity

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