Societe Generale extends one-off payment to SIA short DLC holders

The DLC lost its value after price adjustments were made to offset share dilution.

Societe Generale’s SG Issuer is giving a single exceptional payment to investors of the 5x Short daily leverage certificates (DLCs) on Singapore Airlines (SIA) as “goodwill gesture,” the issuing entity announced in an SGX filing.

The single exceptional payment will amount to $0.30 per 5x Short DLC on SIA. This will be made to registered holders of the DLC as of 11 May.

On 6 May, an airbag mechanism was triggered as the underlying unit price of the DLCs rose by more than 20%. As the underlying stock price reached $4.59, the DLCs lost 100% of value. Trading and market making activities for the DLCs have been permanently suspended.

Also read: Airlines struggle to tap into debt capital markets: SIA

This followed after a corporate action adjustment involving SIA’s new ordinary shares and mandatory convertible bonds, which was made to offset the dilutive or concentrative effect on the underlying asset price, by way of adjusting the Rfactor of the SIA DLCs.

“We emphasise that the goodwill payment amount is not intended to compensate investors for all loss given the risks investors assumed in purchasing these structured products,” SG Issuer said.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia