OCBC Macau

Currency Pair Principal Protected Investment

Personal Banking
Investment
Currency Pair Principal Protected Investment

Principal protection¹ and potential interest enhancement!

It is a structured investment product that embeds foreign currency option. You can have your principal protected¹ and grasp the investment opportunities with a higher potential interest return in response to foreign exchange movement.

How to apply

Warning Statement

Currency Pair Principal Protected Investment is an unlisted structured investment product involving derivatives. Investment involves risks. The investment decision is yours, but you should not invest in this product unless the intermediary who sells it to you has explained to you that the product is suitable for you having regard to your financial situation, investment experience and investment objectives.

Currency Pair Principal Protected Investment is NOT protected deposit and is NOT protected by the Deposit Protection Regime in Macau. It is NOT equivalent to nor should it be treated as a substitute for a traditional fixed deposit.

100% principal protection¹

Receive 100% of the principal amount upon investment maturity regardless of currency movement¹

Potential higher interest return

Potential higher interest returns in response to the trend of the foreign exchange movement

Choice of Bullish or Bearish view

Capture the foreign exchange movement by adopting a bullish or bearish strategy

No currency conversion

Get back your return in the currency of your investment at maturity

Tailor-made to suit your needs

Tenor varies from 3 to 12 months, and offered in a wide range of currencies, subject to your needs

No Extra Handling Charge²

Remarks

Principal protection is only applicable if this product is held to maturity, subject to the credit and insolvency risks of the Bank and the Currency Pair Principal Protected Investment Terms and Conditions.
Subject to the Currency Pair Principal Protected Investment Terms and Conditions.

How it works

Example - Single Strike Rate

Refer to the below illustrative examples on the different scenario analysis of Currency Pair Principal Protected Investment.

This scenario analysis for Currency Pair Principal Protected Investment is based on the following terms (CNY Bullish view and expects a depreciation to 6.0362 with USD against CNY within 6 months)
Investment Currency	CNY
Principal Amount	CNY 100,000.00
Investment Tenor	6 Months (180 days)
Currency Pair	USD/CNH
Initial Fixing Rate	6.0972
Strike Rate	6.0362 (99% of Initial Fixing Rate)
Fixing Rate	The exchange rate of the Currency Pair on the Exchange Rate Fixing Date
Interest Rate (1) Target Return Rate OR (2) Minimum / Lower Return Rate(it may be zero)	If the Fixing Rate on the Exchange Rate Fixing Date is: (1) at or below of the Strike Rate, 5.60% p.a. will be applied; OR otherwise (2) 1.00% p.a. will be applied

Scenario 1 (Best Case Scenario) – Targe Return Rate

Assuming on Fixing Date, the Fixing Rate is AT or BELOW the Strike Rate 6.0362

The amount received at maturity
CNY 102,800.00

= Principal Amount + Interest Amount calculated at the Target Return Rate
= CNY 100,000.00 + CNY (100,000.00 x 5.60% x (180/360))
= CNY 100,000.00 + CNY 2,800.00

In this scenario, you have an actual gain of an Interest Amount of CNY 2,800.00, representing an actual rate of return of 2.80% (i.e. Interest Amount (CNY 2,800.00) ÷ Principal Amount (CNY 100,000.00) x 100%) (rounded to the nearest 4 decimal places). This is the maximum potential gain under Currency Pair Principal Protected Investment even if your view on the Fixing Rate is correct.

Scenario 2 (Lower Return Scenario) – Minimum / Lower Return Rate

Assuming on Fixing Date, the Fixing Rate is ABOVE the Strike Rate 6.0362

The amount received at maturity
CNY 100,500.00

= Principal Amount + Interest Amount calculated at the minimum / lower Interest Rate
= CNY 100,000.00 + CNY (100,000.00 x 1.00% x (180/360))
= CNY 100,000.00 + CNY 500.00

In this scenario, you have an actual gain of an Interest Amount of CNY 500.00, representing an actual rate of return of 0.50% (i.e. Interest Amount (CNY 500.00) ÷ Principal Amount (CNY 100,000.00) x 100%) (rounded to the nearest 4 decimal places)

Scenario 3 (Default Scenario) – The Bank defaults in payment or becomes insolvent

Assuming that the Bank becomes insolvent or defaults on its obligations under this product, you can only claim as an unsecured creditor of OCBC Bank (Macau) Limited regardless of the terms of this product. You may get nothing back and may lose all of your Principal Amount of CNY 100,000.00 and the potential Interest Amount even if your view on the movement of exchanges is correct.

Scenario Summary and Potential Return Analysis

Scenario	Fixing Rate (USD / CNH)	Total payout on the maturity date (CNY)	Investment return at maturity (CNY)	Gain or loss against the Principal Amount (Actual %)
1	6.0300	102,800.00	2,800.00	2.80%
2	6.0400	100,500.00	500.00	0.50%
3	You will be ranked as an unsecured creditor against the Bank if the Bank becomes insolvent or defaults on its obligations under this product and you may lose the entire Principal Amount of CNY 100,000.00 and the potential Interest Amount.

Potential return at maturity (CNY) of three scenarios above

Other Scenario 4 – if your home currency is not CNY

This scenario is based on the assumption that you convert USD16,393.44 (Principal Amount in Home Currency) to CNY100,000 at the Exchange Rate of 6.1000 (USD/CNH) and invest the Principal Amount CNY100,000 in this product.

Gain Scenario

Assuming that the Fixing Rate is AT or BELOW the Strike Rate on the Fixing Date, as elaborated under scenario 1 above, you will receive in cash the Principal Amount together with the Interest Amount (i.e. CNY100,000.00 + CNY2,800.00 = CNY102,800.00) payable in CNY on the Maturity Date. If you convert the CNY payments you receive back to USD, the amount you receive will be affected by the prevailing exchange rate between USD and CNY and you will make a gain only if the prevailing exchange rate is below 6.2708 (USD/CNH).

Assuming that the prevailing exchange rate between USD and CNY is 6.0390 (USD/CNH), you will receive USD17,022.69 (CNY102,800.00 / 6.0390). In this example, you will have an actual gain of USD629.25 (USD17,022.69 - USD16,393.44) or 3.84% (USD629.25 / USD16,393.44).

Break Even Scenario

Assuming that the Fixing Rate is ABOVE Strike Rate as elaborated in scenario 2 above, you will receive in cash the Principal Amount together with the Interest Amount (i.e. CNY100,000.00 + CNY500.00 = CNY100,500.00) payable in CNY on the Maturity Date. If you convert the CNY payments you receive back to USD, the amount you receive will be affected by the prevailing exchange rate between USD and CNY.

Assuming that the prevailing exchange rate between USD and CNY is 6.1305 (USD/CNH), you will receive USD16,393.44 (CNY100,500.00 / 6.1305) which is equal to your initial investment amount in your home currency.

Losing Scenario

Assuming that the Fixing Rate is ABOVE Strike Rate as elaborated in scenario 2 above, you will receive in cash the Principal Amount together with the Interest Amount (i.e. CNY100,000.00 + CNY500.00 = CNY100,500.00) payable in CNY on the Maturity Date. If you convert the CNY payments you receive back to USD, the amount you receive will be affected by the prevailing exchange rate between USD and CNY and you will suffer a loss once the prevailing exchange rate is above 6.1305 (USD/CNH).

Assuming that the prevailing exchange rate between USD and CNY is 6.1613 (USD/CNH), you will receive USD16,311.49 (CNY100,500.00 / 6.1613). In this example, you will have an actual loss of USD81.95 (USD16,311.49 – USD16,393.44) or 0.50% (USD81.95 / USD16,393.44).

In the worst case whereby CNY depreciates to zero, you may lose all of your investment.

Declaration

The illustrative examples above are hypothetical and provided for illustration purpose only. They do not reflect a complete analysis nor all possible factors of all possible potential gain or loss scenarios, are not based on the past performance of the exchange rates of the Currency Pair and must not be relied on as an indication of the actual performance of the exchange rate of the Currency Pair or this product. You should not rely on these examples when making an investment decision. The scenarios assume no fees and charges.

How to apply

Visit any of our branches for account opening.

Branches

Important Notice and Risk Disclosure

This product is not a protected deposit and is not protected by the Deposit Protection Regime in Macau,not equivalent to nor should they be treated as a substitute for fixed deposit.
The principal protection feature of this product is only applicable if this product is held to maturity and subject to the credit and insolvency risks of the Bank and the relevant terms and conditions.
Investment in this product is not the same as buying any currency of the Currency Pair directly. This product is not secured by any collateral, hence no first priority of claim to the proceeds of the collateral realized. Investors have to bear the credit and insolvency risks of the Bank, and you could lose all of your investment. There is no liquid secondary market for this product, and the Bank has the right (but not the obligation) to terminate this product early upon occurrence of certain events.
Foreign currency-denominated transactions involve currency risks. Fluctuations in currency rates may result in significant losses in the amount invested in the event that the currency denominated in the transaction is exchanged to another currency.
If the investment involves Renminbi, you should note that the value of Renminbi against other currencies fluctuates and will be affected by, amongst other things, the PRC’s government control. You should also note that Renminbi is currently not freely convertible and the offshore Renminbi exchange rate may deviate significantly from the onshore Renminbi exchange rate.
The illustrative examples given in this webpage are given as an indication only and should be read subject to the offering documents governing this product (including but not limited to the Currency Pair Principal Protected Investment Terms and Conditions, the Investment Account Terms and Conditions the relevant Term Sheet), and are you advised to read and understand the terms and conditions of the offering documents (including but not limited to the Currency Pair Principal Protected Investment, the Investment Account Terms and Conditions and the relevant Term Sheet) before investing in this product.
The content in this material is not and shall not be considered as a recommendation, offer or invitation to purchase or subscribe any of the investment products or services mentioned herein. This material does not represent all the details of the risk and product. Investor should not invest solely based on this promotional material. You should carefully read the offering documentation for a detailed product information and risk factors prior to making any investment decision. If you have any doubt, you should seek independent professional advice.
This promotional material is prepared by OCBC Bank (Macau) Limited, and the contents have not been reviewed by any regulatory authority in Macau.
In case of discrepancy between the English version and the Chinese version, the Chinese version shall prevail.

Principal protection1 and potential interest enhancement!

Warning Statement

100% principal protection1

Potential higher interest return

Choice of Bullish or Bearish view

No currency conversion

Tailor-made to suit your needs

No Extra Handling Charge2

How it works

Declaration

Related offering documents and links

How to apply

Visit any of our branches for account opening.

Principal protection¹ and potential interest enhancement!

100% principal protection¹

No Extra Handling Charge²