Nikko Cordial Securities will distribute its first structured product under its new name, SMBC Nikko Securities, following its acquisition by the Sumitomo Mitsui Banking Corporation in 2009 from Citigroup. The name change was announced last September.
SMBC Nikko has filed documents for Nikkei ERKIDC JPY M20160412 and Nikkei ERKIDC JPY M20160413 with the regulator. The five-year income products are both linked to Nikkei225 and pay quarterly or semi-annual coupons through the tenor. The coupon rates will depend on the performance of the index, with 4-7% pa paid if the index is at or above 80% of its initial level on any valuation date, or 0.1% pa otherwise.
The product knocks out if the index is at or above 105% of its initial level on any valuation date, returning capital together with a coupon. Otherwise, a -40% soft protection applies. Nikko is the third most prolific retail issuer in Japan so far in 2011, having issued 17 structured products, SRP data shows.
The new products will be offered from 1 April and the bond issuer is Municipality Finance.
These products appear on the Japan database.