Term Definition Absolute Performance Calculated in accordance with the following formula “Abs[(Final Price / Initial Price) – 1]”. For the avoidance of doubt, where the calculation of performance above yields a negative number, only the numerical value (without regard to the fact that it is a negative number) will be used for the purposes of determining the additional amount payable to the investor). Bearish Negative market expectation, i.e. a negative performance of the (single) underlying or the Laggard (as applicable) is expected. Bullish Positive market expectation, i.e. a positive performance of the (single) underlying or the Laggard (as applicable) is expected. Coupon barrier Reference Level expressed in % terms, used to determine the payment of a coupon. ETF Exchange-traded funds Final Price Calculated in accordance with the following formula “Final Price / Initial Price” Final Level Reference price spot of the (single) underlying or of each constituent of the Worst-Of Basket (as applicable) on the final observation date Initial Price Reference spot price of the (single) underlying or of each constituent of the Worst-Of Basket (as applicable) on the strike date. Initial level Equal to 100% of the Initial Price. Issuer risk (credit risk) Denotes the negative effects of a decline in the issuer’s financial standing on the repayment value of the structured product and/or its price in the secondary market. In the event of the insolvency of the issuer, repayment may not be made at the end of the term (which could mean the total loss of the capital invested). Knock In (KI) Event Deemed to occur if the closing price of the (single) underlying or the Laggard (as applicable) on any relevant applicable knock-out observation date is lower than the applicable knock-in price. Knock Out (KO) Event Deemed to occur if the closing price of the (single) underlying or the Laggard (as applicable) on any relevant applicable knock-out observation date is equal to or greater than the applicable knock-out price. Knock In (KI) Barrier Reference level expressed in % terms, used the determine the occurrence of a Knock-In Event. The knock-in price corresponds to “%Knock-in Barrier x Initial Price”. Knock Out (KO) Barrier Reference level expressed in % terms, used the determine the occurrence of a Knock-Out Event. The knock-out price corresponds to “%Knock-Out Barrier x initial price”. Laggard On any observation date, basket constituent with the lowest performance compared to the other constituents, where the performance of each constituent is calculated in accordance with the following formula “(closing price on such observation date / Initial Price) – 1”. Nominal Value Stated value of an issued security that remains fixed. Performance Calculated in accordance with the following formula “(Final Price / Initial Price) – 1”. Periodic Coupon Coupon amount accrued (at the applicable coupon rate) over the relevant coupon period. For the avoidance of doubt, a Periodic Coupon of 12% per annum payable on US$100K Nominal Value on a quarterly basis means periodic coupon payments of US$3K each. Strike Price The conversion price used to calculate the number of shares to be delivered (whenever it is applicable). Worst-of Basket Group of securities or indices, which are bundled as a single underlying and whose performance is based on the Laggard.

Fixed coupon notes

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Introduction to Fixed Coupon Notes (FCNs)

Fixed Coupon Notes (FCNs) are equity-linked structured notes where investors receive an unconditional periodic coupon. FCNs are for investors with a stable or moderately bullish market outlook. They enable investors to customize the risk-return profile of traditional assets and obtain investment solutions which fit their financial needs.

What else should you know?

MORE ON	DESCRIPTION
Market View	FCNs are for investors with a stable or moderately bullish market outlook.
Mechanism	At the end of each period: – Investors receive an unconditional Periodic Coupon; – Additionally, if the Laggard is at/above the Knock-Out Barrier on the periodic observation date, the note will be redeemed early by the issuer at par. At maturity: – If, on the final valuation date, the Laggard is at/above the Strike or if no Knock-In Event occurred, investors receive 100% of the Nominal Value plus the final Periodic Coupon; – Else, investors receive a number of shares of the Laggard defined as “Nominal Value / Strike Price” plus the final Periodic Coupon (an unrealized capital loss may occur).
Typical Parameters	– Underlying: stocks or ETFs with high implied volatility, high dividend and low correlation (within a Worst-Of Basket) – Tenor: short / medium
Potential Risks	Include (but not limited to) the following: – Principal is at risk – Potential gains are limited to the coupons – Investors are exposed to the Credit Risk of the issuer and the market movement of the underlying

Common Definitions

Term	Definition
Absolute Performance	Calculated in accordance with the following formula “Abs[(Final Price / Initial Price) – 1]”. For the avoidance of doubt, where the calculation of performance above yields a negative number, only the numerical value (without regard to the fact that it is a negative number) will be used for the purposes of determining the additional amount payable to the investor).
Bearish	Negative market expectation, i.e. a negative performance of the (single) underlying or the Laggard (as applicable) is expected.
Bullish	Positive market expectation, i.e. a positive performance of the (single) underlying or the Laggard (as applicable) is expected.
Coupon barrier	Reference Level expressed in % terms, used to determine the payment of a coupon.
ETF	Exchange-traded funds
Final Price	Calculated in accordance with the following formula “Final Price / Initial Price”
Final Level	Reference price spot of the (single) underlying or of each constituent of the Worst-Of Basket (as applicable) on the final observation date
Initial Price	Reference spot price of the (single) underlying or of each constituent of the Worst-Of Basket (as applicable) on the strike date.
Initial level	Equal to 100% of the Initial Price.
Issuer risk (credit risk)	Denotes the negative effects of a decline in the issuer’s financial standing on the repayment value of the structured product and/or its price in the secondary market. In the event of the insolvency of the issuer, repayment may not be made at the end of the term (which could mean the total loss of the capital invested).
Knock In (KI) Event	Deemed to occur if the closing price of the (single) underlying or the Laggard (as applicable) on any relevant applicable knock-out observation date is lower than the applicable knock-in price.
Knock Out (KO) Event	Deemed to occur if the closing price of the (single) underlying or the Laggard (as applicable) on any relevant applicable knock-out observation date is equal to or greater than the applicable knock-out price.
Knock In (KI) Barrier	Reference level expressed in % terms, used the determine the occurrence of a Knock-In Event. The knock-in price corresponds to “%Knock-in Barrier x Initial Price”.
Knock Out (KO) Barrier	Reference level expressed in % terms, used the determine the occurrence of a Knock-Out Event. The knock-out price corresponds to “%Knock-Out Barrier x initial price”.
Laggard	On any observation date, basket constituent with the lowest performance compared to the other constituents, where the performance of each constituent is calculated in accordance with the following formula “(closing price on such observation date / Initial Price) – 1”.
Nominal Value	Stated value of an issued security that remains fixed.
Performance	Calculated in accordance with the following formula “(Final Price / Initial Price) – 1”.
Periodic Coupon	Coupon amount accrued (at the applicable coupon rate) over the relevant coupon period. For the avoidance of doubt, a Periodic Coupon of 12% per annum payable on US$100K Nominal Value on a quarterly basis means periodic coupon payments of US$3K each.
Strike Price	The conversion price used to calculate the number of shares to be delivered (whenever it is applicable).
Worst-of Basket	Group of securities or indices, which are bundled as a single underlying and whose performance is based on the Laggard.

Investment Products:
The content of this webpage does not constitute an offer, recommendation or solicitation of an offer to enter into a transaction or adopt any hedging, trading or investment strategy. It has not been prepared for any particular person or class of persons and does not constitute and should not be construed as investment advice nor an investment recommendation. It has been prepared without regard to the specific investment objectives, financial situation or particular needs of any person. You should seek advice from a licensed or an exempt financial adviser on the suitability of the product for you, taking into account these factors before making a commitment to purchase or invest in an investment. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether this product is suitable for you. You are fully responsible for your investment decision, including whether the product or service described here is suitable for you. The investment products mentioned are not principal-protected and you may lose all or part of your original investment amount. Standard Chartered Bank (Singapore) Limited (“SCB”) will not accept any responsibility or liability of any kind, with respect to the accuracy or completeness of the information in this website.

Investment products are not deposits and each of the investment products mentioned does not qualify as an insured deposit under the Singapore Deposit Insurance and Policy Owners’ Protection Schemes Act 2012 Rev. Ed, Cap 77B.

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Learn more about Fixed Coupon Notes.

Introduction to Fixed Coupon Notes (FCNs)

Introducing Fixed Coupon Note

Key Features

Principal At Risk

Short / Medium Term

Knock-In / Knock-Out Barriers

Worst-Of Basket

Periodic Coupons

Make a positive impact on society and the environment

More about Fixed Coupon Notes (FCNs)

Glossary

Disclaimer

How can we help you today?

What kind of loan are you looking for?

Learn more about Fixed Coupon Notes.

Introduction to Fixed Coupon Notes (FCNs)

Introducing Fixed Coupon Note

Key Features

Principal At Risk

Short / Medium Term

Knock-In / Knock-Out Barriers

Worst-Of Basket

Periodic Coupons

Make a positive impact on society and the environment

More about Fixed Coupon Notes (FCNs)

Glossary

Disclaimer

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