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Macquarie ELI Example
An investor have seen the term sheet below:
| DAILY SERIES TERM SHEET |
42 Days |
Macquarie
Equity Linked Investments Term Sheet |
| Series Number |
42431 |
| Issue Date |
10-Apr-03 |
| Minimum Nominal Value |
HK$100,000 per Share and thereafter in increments of HK$10,000 |
| Fixing Date |
20-May-03 |
| Settlement Date |
22-May-03 |
Listed Entity
|
SEHK Code
|
Reference Price% |
Potential Return% PA |
Purchase Price Percentage |
| Cheung Kong (Holdings) Limited |
0001.HK |
92.00% |
15.39% |
98.26% |
| CLP Holding Limited |
0002.HK |
... |
... |
... |
| ... |
... |
... |
... |
... |
The investor chooses to buy Cheung Kong (Holdings) Limited through
Macquarie ELI. He paid HK$98,260 (min. investment $100,000 x 98.26%
= $98,260) and would like to purchase Cheung Kong (Holdings) Limited
shares at Reference Price $38.916 (closed price of Cheung Kong share
on issue day $42.3 x Reference Price% 92% = $38.916).
At maturity, 2 possible situations will come out:
- 1. At Fixing Date, if closed market price of Cheung Kong is
at or above $38.916, the investor will receive Cheung Kong shares
worth HK$100,000. (Please note that Macquarie has the discretion
to deliver cash instead of delivering shares)
As the investor paid HK$98,260 to purchase the Macquarie ELI,
he has earned HK$1,740.
- 2. At Fixing Date, if closed market price of Cheung Kong is
below $38.916, the investor receives 2,569.64 shares. (Macquarie
will not deliver the odd lot shares, they will be settled in cash
(= no. of odd lot shares x closed market price at Fixing Date))
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