edelweiss structured product offerings

Edelweiss Structured Product Offerings

(PRINCIPAL PROTECTED, UNLISTED & RATED MARKET LINKED DEBENTURES )

VALID FOR OCT’21

Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.

2 Strictly Private and Confidential- Not for Publication. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws.

Why - Structured Products - The need of the hour

Cornerstone for asset allocation enabling

diversification

With low interest rates on fixed return investments

the quest for a positive real returns are a challenge

Structured Products are inflation efficient investments versus traditional fixed income.

Provide tailor made solutions to investors Prior due diligence of issuer by an independent trustee, regulated by SEBI & RBI

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Amongst the limited players offering equity oriented products

2 Successful Track record with Gross Issuances of Rs. 18,200+ cr (as of 31st August, 2021)

Edelweiss – One of India’s leading structured solution architects

1 First to the market – First Indian entrant in the Market Linked Debenture Segment in 2007

Edelweiss Structured Products 3

Robust Distribution Network – Banks, Wealth outfits, Family Offices and marquee clients include Provident Funds & treasuries

4 Bespoke Solutions per investor requirement

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What is Edelweiss Twin Win?

Fixed Returns of 6.00% p.a.2

payable at maturity

If Nifty 50 Index gives more

Than 6.00% p.a.2 returns

over 3 years, Twin Win gives

Nifty 50 returns#

In case Nifty is down after

3 years, you still get

Principal1

+ Fixed return

Twin Win gives the higher of

Fixed Return (6.00% p.a.) or

Nifty Returns over 3 years

Thus no need to allocate

between Debt and Equity,

Twin Win gives you the best

of both

1 Principal protection is to the extent of the Face Value of the underlying investment in Market Linked Debentures (MLDs) and subject to credit risk of the Issuer of MLDs; 2 Realized return on investment may differ, as there may be a difference in purchase value and face value of the security on the date of investment;# in Edelweiss Twin Win, equity upside return is basis face value; Realized return on investment may differ, as there may be a difference in purchase value and face value of the security

Fixed Returns and Principal Protection1

Full Equity UpsideNo Equity Downside

Edelweiss Twin Win

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Twin Win – Return Scenarios4

Nifty Level

Nifty ReturnTW

Return4 Redemption ValueInvestment at

FVTW IRRat FV 6

36000 100.00% 100.00% 20,00,000 10,00,000 21.91%

31500 75.00% 75.00% 17,50,000 10,00,000 17.35%

27000 50.00% 50.00% 15,00,000 10,00,000 12.29%

25200 40.00% 40.00% 14,00,000 10,00,000 10.09%

22072 22.62% 22.62% 12,26,200 10,00,000 6.00%

19800 10.00% 22.62% 12,26,200 10,00,000 6.00%

18900 5.00% 22.62% 12,26,200 10,00,000 6.00%

18000 0.00% 22.62% 12,26,200 10,00,000 6.00%

16200 -10.00% 22.62% 12,26,200 10,00,000 6.00%

13500 -25.00% 22.62% 12,26,200 10,00,000 6.00%

9000 -50.00% 22.62% 12,26,200 10,00,000 6.00%

0 -100.00% 22.62% 12,26,200 10,00,000 6.00%

AssumedEntryLevel5

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4 Twin-Win returns showcased are for illustrative purposes only. The returns are pre-tax and post-cost (Excluding set-up fees); 5 Assumed Entry level is average of official closing of Nifty 50 Level on Primary Trade Date and next 5 F&O expiries6 IRR is only for illustrative purpose.

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-10%

10%

30%

50%

70%

90%

2013 2014 2015 2016 2017 2018 2019 2020 2021

Nifty 50 Performance Twin Win

Nifty Return Scenarios % Times Nifty Avg. Return TW Avg. Return

Below 0% 4% -1.83% 22.62%

0% to 22.62% 33% 11.96% 22.62%

Above 22.62% 63% 38.51% 38.51%

3 Year Rolling Returns from Jan-13 to Sep-21

Sou

rce:

NSE

Nif

ty C

losi

ng

Pri

ces

3 y

rA

bso

lute

Re

turn

s

Historically - 63% times, Twin Win has given equity returns2

2 Based on backtested data from 01-Jan-10 till 30-Sep-21 assuming daily investment, covering 3042 observations. Backtesting / past performance is not an indication of future returns.

Twin Win replicates FD returns when Nifty gives negative to flat Twin Win replicates equity returns2 in buoyant market conditions

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Details Twin Win

Issuer ECAP Equities Ltd.

Credit Rating Minimum of PP-MLD-(A+)

Secured Yes, secured by 1x cover on Principal & Coupon against balance sheet assets

Listing Unlisted

Minimum Investment Amount ( Per Client)

3 Cr

Principal Protection1 Principal Amount is protected at maturity, to the extent of Face Value

Tenor in Months 36/42 M

Entry Level Average of Official Closing Level of Nifty 50 as on primary trade date & F&O expiry of next 5 months

Exit Level Average of Official Closing Level of Nifty 50 as on NSE F&O Expiry of 31st to 36th month from primary trade date

Return Profile4 Maximum of 6.00%2 IRR or Nifty Underlying Performance2

Twin Win Idea - Details


Interest Rate Risk

Repayment Risk

Liquidity Risk

Rise and fall in the interest rates influence the valuation of the investment, thus may result in mark

to market loss during the tenor of the investment.

MLDs are issued for a fixed tenor with no interim exit options for the investor built in.

While the MLDs are listed, there is no assurance that liquidity will be available on the same if there

are no active buyers and sellers.

Principal amount, and any other amounts that maybe due in respect of the debentures is subject to

the credit risk of the Issuer

In the event that bankruptcy or similar proceedings, the investor may stand to lose the entire

invested Principal, or the due amount may not be made or may be substantially reduced or delayed

General Risk Factors

* For detailed information about the risks mentioned above and other risks, please refer to the offer document


Disclaimers

1. This is not an Offer Document or Prospectus and does not constitute an Offer under the applicable laws. The recipient of this document agrees and acknowledges that this document is only for the purpose of market research andthat this document should not to be construed as an offer to sell or a solicitation of an offer to subscribe to the product mentioned in this document, or otherwise buy or sell any securities.

2. This document is prepared by one or more of the ECAP Equities Ltd. (“Edelweiss”) and is strictly confidential and is intended for the use by recipient only and may not be circulated, redistributed, retransmitted or disclosed, inwhole or in part, or in any form or manner, without the express written consent of Edelweiss. Receipt and review of this document constitutes your agreement not to circulate, redistribute, retransmit or disclose to others thecontents, opinions, conclusion, or information contained herein. No part of this document should be copied, photocopied or duplicated in any form.

3. This document is for circulation in India only and is being provided through the empanelled distributors of Edelweiss.4. This document is for the private information of the recipient(s) and is not for public distribution and should not be reproduced or redistributed to any other person or in any form without Edelweiss’s prior permission. The

information in this document is provided on an “as is” and “as available” basis and without representation or warranty of any kind. The information provided in this document is from publicly available data, which Edelweissbelieves, is reliable. While reasonable endeavours have been made to present reliable data in this document so far as it relates to current and historical information, but Edelweiss does not guarantee the accuracy or completenessof the data in this document. Accordingly, Edelweiss or any of its connected persons including its directors or subsidiaries or associates or employees shall not be in any way responsible for any loss or damage that may arise to anyperson from acting on any information contained, views and opinions expressed in this publication. Any person subscribing to any product/financial instruments should do so on the basis of and after verifying the legal, accountingand tax implications attached to such product/financial instrument. Edelweiss does not in any manner advice on the tax implications on such products.

5. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimatescontained in this document reflect a judgment of its original date of publication by Edelweiss and are subject to change without notice. The price, value of and income from any of the securities or financial instruments mentionedin this document can fall as well as rise. The value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financialinstruments. The information contained in this document is of the date hereof and is subject to change.

6. This document is purely for information purposes. The opinions expressed in this document are our current opinions as of the date of this document and may be subject to change from time to time without notice. No informationprovided in this document shall be considered a substitute for your independent investigation. Edelweiss or any persons connected with it do not accept any liability arising from the use of this document.

7. Edelweiss (including its group companies, directors, employees, affiliates and associates) will not be liable to you in relation to the contents of, or use of, or otherwise in connection with, this document for any direct or indirect,special or consequential loss; or for any business losses, loss of revenue, income, profits or anticipated savings, loss of contracts or business relationships, loss of reputation or goodwill, or loss or corruption of information or data.The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material.

8. This document does not provide investment advice and nothing contained in this document should be construed as being investment advice. Recipients should consult their own advisors, including financial, investment, tax andlegal advisors, before investing in the products mentioned in the document. There is no obligation or compulsion to buy or invest in the products mentioned in this document through Edelweiss or its associates and you may investin the products/services at your discretion through any other product or service provider. Any fees and charges, payable by you for the execution/distribution services availed by you, must be paid directly to the respective serviceprovider and not through Edelweiss.

9. Edelweiss has other business segments / divisions with independent research teams separated by ‘chinese walls’ catering to different sets of customers having varying objectives, risk profiles, investment horizon, etc. andtherefore, may at times have, different and contrary views on stocks, sectors and markets.

10. This document is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication,availability or use would be contrary to local law, regulation or which would subject Edelweiss and its affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not beeligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restrictions.

11. As Edelweiss along with its subsidiaries and associates, are engaged in various financial services business and so might have financial, business or other interests in other entities including the subject company/ies mentioned in thisdocument, if any. However, Edelweiss encourages independence in preparation of documents and strives to minimize conflict in preparation of this document. Edelweiss and its associates do not have any material conflict ofinterest at the time of publication of this document.

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