Type of Services
The K-Smart Note is a structured note -- a derivative embedded investment -- issued by KBank that offers returns linked to market parameters such as THBFIX (i.e., Thai Baht implied interest rates), equity indices, commodity prices, FX rates, etc. It may also have features allowing the investor or KBank the right to redeem or extend (Call or Put feature) the maturity of the Note early. The K-Smart Note is usually presented in the form of Bills such as B/E or P/N.
Variations of the K-Smart Note:
1. Interest Rate Linked Notes:
This K-Smart Note offers returns linked to the movements of interest rates, for instance, the 6-month THBFIX, average MLR, etc. It may grant the investor or KBank the right to redeem it prematurely, or extend the maturity of the Note (Call or Put feature), as well as giving the right for the investor or KBank to change the coupon payment formulae. The following are some examples of Interest Rate linked Notes:
- Switchable Notes: The first period return is an enhanced fixed rate, however, at a later period, KBank has a one-time right to switch the coupon payment into a floating rate.
- Inverse Floater: the Note pays a fixed rate minus a floating interest rate, such as the THBFIX, e.g., 5% - THBFIX. Investors would receive higher returns if the linked interest rate (THBFIX) decreases.
2. Equity linked Notes:
This K-Smart Note also offers returns linked to equity indices such as the SET50, Nikkei, or a specific group of stocks. The Note may have a fixed minimum return or no minimum return. The following are some examples of the Equity linked Note:
- K-Smart Bullish Note: offers higher returns in line with an increase in the linked financial index.
- K-Smart Bearish Note: offers higher returns in line with a drop in the linked financial index.
- Range Accrual Note: offers higher returns if SET50 moves within a pre-specified range, but will give lower returns (or zero return) if the SET50 is out of the range.
3. Other:
As the investors may imagine, K-Smart Notes offer returns linked to other asset classes like oil prices, precious metals, agricultural products, etc.
Required Documents
and additional documentation as specified below:
Thai Private Individuals:
- A certified true copy of your ID card or other official proof of identity that bears your photo
- A certified true copy of your House Registration
- A certified true copy of your deposit account at KBank
Minors (Less than 15 years old)
- A certified true copy of the parent’s ID card or other official proof of identity that bears their photo
- A certified true copy of the minor’s House Registration
Non-Resident Private Individuals:
- A certified true copy of your passport and/or work permit in Thailand
Businesses Registered in Thailand:
- A copy of the commercial registration (not over 1 year old) along with a certified list of every authorized signatory and the company seal (if any)
- Copies of the national ID cards, passports or temporary work permits in Thailand of directors who are authorized signatories.
Businesses Registered in Other Countries:
- Copies of business registration, memorandum of association, regulations and certification (not over 1 year old) along with a certified list of every authorized signatory and the company seal (if any)
- Copies of passports of the board of directors who are authorized signatories.
Terms & Conditions
- Offered to institutional investors, registered businesses and high-net worth investors, subject to Bank of Thailand regulations.
- Minimum required investment is THB 10 million plus multiples of THB 1 million.