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Banking industry

Credit Suisse Issues CBBCs for WuXi Biologics, Ping An Insurance, and Geely Automobile

Strategic Insights

— 2 min read

Credit Suisse (Hong Kong) Limited has issued callable bull and bear structured notes for WuXi Biologics (Cayman) Inc., Ping An Insurance (Group) Company of China, Ltd., and Geely Automobile Holdings Limited. The notes, denominated in Hong Kong dollars, offer a range of returns based on the performance of the underlying shares, with up to 4.36x gearing and a maximum exposure of 2,000,000 shares for each series.

Key Takeaways:

  • The Credit Suisse CBBCs are callable bull and bear structured notes with a maximum issue size of 50,000,000 to 100,000,000 notes for each series.
  • The notes are denominated in Hong Kong dollars and offer a range of returns based on the performance of the underlying shares.
  • The maximum exposure is 2,000,000 shares for each series, with a board lot of 5,000 to 100,000 notes depending on the series.
  • The issue price and funding cost per note are HK$0.250 and HK$0.1090 to HK$0.2313, respectively.
  • The strike price, call price, and cash settlement amount vary by series, with a maximum number of shares to which the CBBCs relate ranging from 500,000 to 2,000,000.
  • The launch date, issue date, and listing date are 28 January 2021, 1 February 2021, and 2 February 2021, respectively.
  • The observation commencement date, valuation date, and expiry date are 2 February 2021, the trading day immediately preceding the expiry date, and 29 July 2021 to 29 September 2021, respectively.
  • The effective gearing, gearing premium, and time premium for each series are 1.71x, 54.11%, 4.36x, 2.54x, 20.60%, 3.75x, and 30.91%, respectively.

Statistics:

  • Issue size: 50,000,000 to 100,000,000 CBBCs per series
  • Issue price: HK$0.250 per note
  • Funding cost: HK$0.1090 to HK$0.2313 per note
  • Board lot: 5,000 to 100,000 notes per board lot
  • Maximum exposure: 2,000,000 shares per series
  • Strike price: HK$30.180 to HK$123.000
  • Call price: HK$30.680 to HK$120.000
  • Cash settlement amount: HK$29.000 to HK$41.880
  • Expiry date: 29 July 2021 to 29 September 2021
  • Valuation date: Trading day immediately preceding the expiry date
  • Effective gearing: 1.71x to 4.36x
  • Gearing premium: 10.01% to 54.11%
  • Time premium: 20.60% to 30.91%

Sources:

  • Credit Suisse (Hong Kong) Limited. (2021). Callable Bull and Bear Structured Notes for WuXi Biologics (Cayman) Inc., Ping An Insurance (Group) Company of China, Ltd., and Geely Automobile Holdings Limited.

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