EQUITY LINKED NOTES

An Equity Linked Note (ELN) is a debt instrument, usually a bond, whose final payout is based on the return of the underlying equity, which can be a single stock, basket of stocks or an equity index. It provides investors fixed income like principal protection together with equity market upside exposure. The instrument provides the 100% principal protection whereas the final payment or the coupon payment depends on the appreciation of the underlying equity.