News & Announcement
Krungthai to offer SOAIESG5 index linked note tied to global AI companies with 100% principal protection
Updated Date 17 Jan 2022
Krungthai is set to offer a 5-year Krungthai Solactive Global Artificial Intelligence ESG (SOAIESG5) index linked note with returns based on an index composed of global Artificial Intelligence names such as Meta, Alphabet (Google’s parent company), Tencent and Alibaba. The note rides future business trends and comes with full principal protection if held until maturity. The offering is from 19-25 January 2022 at all Krungthai branches.
Rawin Boonyanusasna, Senior Executive Vice President, Head of Global Markets Group at Krungthai Bank, revealed that Krungthai is ready to roll out its third index linked note, after two very successful offerings last year. The prior success was because the offered notes were well suited for investors in several dimensions. One of their main advantages is full 100% principal protection which allows investors to be confident even when markets are volatile. Another advantage is that investors have a chance to get better returns compared to deposit interest rates as the performance of the notes is derived from that of stocks in high-growth industries. The first index linked note offered was Krungthai SOLUX10F, which invests in stocks of luxury brands; the second one was Krungthai iSTOXX® Global Transformation IXGTRSND, which invests in businesses riding the megatrends.
As for its third index linked note, Krungthai SOAIESG5 will once again offer full 100% principal protection. The returns will be based on the Solactive Global Artificial Intelligence ESG index, which invests in leading global Artificial Intelligence (AI) hardware and software companies including Meta (formerly Facebook), Alphabet (Google’s parent company), Tencent, Alibaba, NVIDIA, Pure Storage, Intel, Zoom, eBay, Twitter, etc. which measures and pass the criteria of environmental, social and corporate governance (ESG) performance. This further highlights Krungthai’s commitment to its mission, conducting business sustainably and respecting all stakeholders, as well as fortifying the bank’s position as a leading ESG financial solution provider to improve the quality of life of Thai people and address Sustainable Development Goals (SDGs). The SOAIESG5 (Solactive Global Artificial Intelligence ESG) index is rebalanced every 3 months.
“AI businesses are on the rise because AI is used in practically all industries and is relevant to everyday life’s activities. Smart devices, social media, online shopping, online gaming, online banking and medical technology are all powered by AI. It is developing at a rapid pace, and it is now one of the key factors driving world economic growth. Therefore, our new index linked note will meet both the need for good returns from continuously rising businesses and the need for stable investment,” said Rawin.
Krungthai Solactive Global Artificial Intelligence ESG (SOAIESG5) will be offered to institutional and high net worth investors during 19-25 January 2022 at Krungthai branches. Interested investors can also contact 02-208-4691, 02-208-4673, 02-208-4835, 02-208-4818 during office hours.
Marketing Strategy Team
17 January 2022
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