Foreign Currency (FX) Risk
- If the settlement currency is different from the currency of the underlying equity/share, investors will be exposed to FX risk when a share delivery takes place as their principal amount will be converted to the currency of the underlying equity/share based on the prevailing FX rate.
Market Risk
- There are various factors that affect the market value of NPP ELI. This includes but are not limited to the market price of the underlying equity/share, volatility of the underlying equity/share, interest rates, dividends and level of FX rates.
Liquidity Risk
- The investment is not listed, non-transferable and non-tradable.
Conversion Risk
- If a conversion event occurs, the investor will take the physical delivery of the underlying equity/share at the strike price. Investor will be subject to market risk of the underlying equity/share. The investor may experience a realized loss if he disposes the underlying equity/share immediately in the market upon the receipt of the underlying share/equity.
Credit Risk – This Investment is NOT insured/NOT protected by Perbadanan Insurans Deposit Malaysia (PIDM)
- The payment of the principal amount or coupon amount of this investment depends upon the ability of the Bank to make such payments.
Non-Principal Protected, Early Redemption and/or Early Termination Risk
- This investment is NOT principal protected and is subject to the performance of the underlying equity/share. In extreme circumstances, the investor may lose all or a significant proportion of their investment.
- This investment is intended to be held until maturity. If the investor chooses to redeem the investment early or due to an early termination event, investor may not necessary receive full rate of the return and principal amount in respect of the investment, including the possibility of some degrees of principal loss.