Structured Deposit - Treasury | DBS CN Corporate Banking

Structured Deposit

Deposits absorbed by commercial banks embedded in financial derivatives

Structured Deposit

Deposits absorbed by commercial banks embedded in financial derivatives

At a Glance

Structured deposits are deposits absorbed by commercial banks embedded with financial derivatives, which are linked to fluctuations in interest rates, exchange rates, indices, etc. or to the credit of an entity, so that customers can obtain relevant returns on the basis of taking certain risks.

DBS China provides customized structured deposits to corporate and institutional customers. By referencing interest rates, exchange rates, gold, indices, securities, funds, credits, etc., customers take certain risks in return for potential yield linked to the performance of the underlying, as agreed upon subscription to a structured deposit.

According to the customer's investment needs and risk tolerance, structured deposits can be designed to be fully principal protected, partially principal protected or no principal protected at all. According to the customer’s expectations of the performance of the underlying, the financial derivatives embedded in the structured deposit can be designed to pay the customer a return higher than interest rate of a term deposit for the same tenor if the underlying’s price rises, falls, or fluctuates within a certain range. Different types of financial derivatives and their combinations, such as European, Asian, digital, barrier options, total return swap, structured option combination and structured swap can also be applied to meet the different needs of various customers for payoff structures.

The structured deposits provided by DBS China can be denominated in RMB or foreign currencies, and the maturity usually ranges from 1 month to 5 years.

Available Products (for example)

LPR-Linked Structured Deposit (Principal Protected)

Currency	Tenor	Potential Profitability
CNY Currency	Average Tenor from 1 month to 2 years	Client will receive the Principal Amount and Return amount upon maturity. The return of the SD is dependent on the performance of the Reference Rate.
The Worst-Case Scenario at Maturity: Client will receive a lower Return Rate per annum for the Return Period Reference Rate for return rate: CNY Loan Prime Rate(LPR)
Important Reminder: This structured product has investment risks. The client will only receive a return determined in the manner set out in the term sheet. The client should fully understand the investment risks before making any investment in this structured product.

Credit Linked- Structured deposit (Non-Principal Protected)

Currency	Tenor	Potential Profitability
CNY or Foreign Currency	Average Tenor from 6 months to 5 years	Client will receive the relevant return amount calculated based on the coupon/dividend from the Underlier while undertaking the profit or loss arised from the underlier price fluctuations or events such as the default of the underlier, as well as the potential profit or loss from exchange rate.
The Worst-Case Scenario at Maturity: Client may suffer a total loss of the principal amount. Underlier(s): Includes but not limit to offshore vanilla bond, CD and AT1 bond
Important Reminder: This structured product has investment risks. There is NO guarantee on the Principal or return amount. The client may suffer a signifcant loss of the principal amount due to market fluctuations. In the worst case scenarios, the client may suffer a total loss of the principal amount.

Dual Currency Foreign Exchange Rate-Linked Non-Principal Protected Structured Deposit (Non-Principal Protected)

Currency	Tenor	Potential Profitability
Foreign Currency Or CNY (CNY is applicable to China (Shanghai) Pilot Free Trade Zone)	Average Tenor from 1 month to 2 years	On the Maturity Date, the client will receive the final total redemption amount in cash. The total redemption amount is composed of the Principal Amount and the Return Amount. Return Amount = Principal Amount*Return Rate. The Return Rate is the percentage as agreed on the Term Sheet. The Client investment currency is defined as the Base Currency while the other currency is defined as the Alternate Currency. If the Alternate Currency appreciates against the Base Currency compared to the Strike Rate at the fixing time on the fixing date, the final redemptioon amount will be in Base Currency; If the Alternate Currency depreciates against the Base Currency compared to the Strike Rate at the fixing time on the fixing date, the final redemptioon amount will be in Alternate Currency, exchanged at the Strike Rate.
The Worst-Case Scenario at Maturity: Client will receive the final total redemption amount in Alternate Currency. The final total redemption amount is 100% of the Principal Amount and the Return Amount exchanged at the Strike Rate. Underlier(s): Spot rate of Base Currency to Alternate Currency.
Important Reminder: This structured product has investment risks. There is NO guarantee on the Principal or return amount. The client may suffer a signifcant loss of the principal amount due to market fluctuations. In the worst case scenarios, the client may suffer a total loss of the principal amount.

Equity/Fund Linked Structured deposit (Non-Principal Protected)

Currency	Tenor	Potential Profitability
CNY or Foreign Currency	Average Tenor from 1 month to 2 years	The product tracks the performance of the underlier. Assume no change of the exchange rate of investment currency to the underlier currency, then the Structured Deposit Redemption Amount increases with the undelier price.
The Worst-Case Scenario at Maturity: Client may suffer a total loss of the principal amount. Underlier(s): Include but not limit to offshore equity index, exchange traded equity, funds(include REITs)
Important Reminder: This structured product has investment risks. There is NO guarantee on the Principal or return amount. The client may suffer a signifcant loss of the principal amount due to market fluctuations. In the worst case scenarios, the client may suffer a total loss of the principal amount.

Equity/Fund/Index Linked -Structured deposit (Principal Protected)

Currency	Tenor	Potential Profitability
CNY or Foreign Currency	Average Tenor from 1 month to 2 years	Structure one(with KO event): If a Barrier Event does not occur, the Customer will on the Maturity Date : (a)only receive a Return Amount which is A% of the Principal Amount, if the Final Closing Level is equal to or lower than the Initial Closing Level; (b)receive a positive Return Amount calculated based the performance of the underlier if the Final Closing Level is lower than the Barrier Level but greater than the Initial Closing Level. The more the performance of the underlier is aligned with the expeactation, the higher the Return Amount will be. If a Barrier Event occurs, the Customer will on the Maturity Date receive a Return Amount, which shall be B% of the Principal Amount.(A% and B% are as agreed on the Term Sheet) Structure two(with no KO event): the Customer will on the Maturity Date receive a Return Amount, which is calculated based on the performance of the underlier. The more the performance of the underlier is aligned with the expeactation, the higher the Return Amount will be.
The Worst-Case Scenario at Maturity: The Client Return Rate will be the lower return rate (A%) as agreed on the Term Sheet. Underlier(s): include but not limited to Offshore/Onshore index,exchange traded equity, funds(include REITs)
Important Reminder: This structured product has investment risks. The client will only receive a return determined in the manner set out in the term sheet. The client should fully understand the investment risks before making any investment in this structured product.

Foreign Exchange Rate-Linked Principal Protected Structured Deposit

Currency	Tenor	Potential Profitability
CNY or Foreign Currency	Average Tenor from 1 month to 2 years	The return is determined by the Foreign Currency Exchange Spot Rate during the SD tenor or at the Fixing Time on the Fixing Date. If the Foreign Currency Exchange Spot Rate satisfies the conditions agreed in the Term Sheet, the redemption amount client receive upon maturity will be the agreed return amount and 100% of the Principal Amount; Otherwise, the redemption amount client receive will be 100% of the Principal Amount and may not receive any additional return amount.
The Worst-Case Scenario at Maturity: The redemption amount client receive will only be 100% of the Principal Amount. Underlier(s): Foreign currency spot rate (i.e. USD/HKD spot rate), XAU related spot rate
Important Reminder: This structured product has investment risks. The client will only receive a return determined in the manner set out in the term sheet. The client should fully understand the investment risks before making any investment in this structured product.

Equity/Fund/Index Linked -Structured deposit (Partial Principal Protected)

Currency	Tenor	Potential Profitability
CNY	Average Tenor from 1 month to 2 years	The return is determined by the performance of the underlier during the SD tenor or at the Fixing Time on the Fixing Date. If the performance of the underlier satisfies the conditions agreed in the Term Sheet, the redemption amount client receive upon maturity will be the agreed return amount and the Principal Amount; Otherwise, the redemption amount client receive might be lower than 100% of the Principal Amount and the client may not receive any additional return amount.
The Worst-Case Scenario at Maturity: The redemption amount client receive might be lower than 100% of the Principal Amount and the client may not receive any additional return amount. Underlier(s): include but not limited to Offshore/Onshore index,exchange traded equity, funds(include REITs)
Important Reminder: This structured product has investment risks. Only Partial Principal is guaranteed and there is No guarantee on the return amount. The client may suffer a signifcant loss of the principal amount due to market fluctuations. In the worst case scenarios, the client may suffer a total loss of the principal amount.

Outstanding Product

DBS China strictly follows the requirement of CBIRC for the information disclosure of structured deposit product. The timely and effective information disclosure of SD product is very important to keep the good relationship with customer.

Periodically and proactively notify of product performance to the investment product holder

Please feel free to contact your relationship manager or contact us through our customer hotline (4008208988) in case of any question or suggestion about our structured deposit products or our services.

*Note: Structured Deposit Products are not ordinary deposits and have investment risks, and customers should be cautious in making any investment.

Disclaimer