In case of Reverse Convertible Bonds at the maturity date interest on the nominal value will be paid out irrespective of the performance of the underlying. The interest rate comes off considerably above market level which, compared to a direct investment, and, therefore, provides for a risk buffer. Redemption of the Reverse Convertible at the end of the term depends on the performance of the underlying.
PLUS+ PROTECT REVERSE CONVERTIBLE BONDS – limited protection until the barrier
Protect Reverse Convertible Bonds issued by Raiffeisen Centrobank are furnished with a barrier which is being set below the strike. This provides for an additional safety mechanism. In case of PLUS+ Reverse Convertible Bonds it is exclusively the closing price of the underlying share at the final valuation date that is compared with the barrier:
The Reverse Convertible Bond will be redeemed at 100 %, if the underlying share closes on August 15, 2014 (final observation date) above the barrier of 70 % of the strike (=closing price of the share on the initial valuation date, February 15, 2013). In case, at the final valuation date, the underlying closes at or below the barrier, the investor is credited the predefined amount of shares per EUR 1,000.- nominal value.
The Reverse Convertible Bonds are based on the German companies Allianz SE, Daimler AG as well as E.ON SE.
Key Facts:
- Initial valuation date: Feb 15, 2013
- Term: 1.5 years (Maturity date: Aug 20, 2014)
- Listing: Vienna, Frankfurt, Stuttgart
Further information is available at the overview page: In Subscription: Reverse Convertible Bonds (3)
For more details kindly see the Product Folder (PDF).
This product, the risks and terms and conditions associated with it, are subject to and governed by the Base Prospectus (including all supplements and amendments thereto) approved by the Austrian Financial Market Authority, which has been deposited at Oesterreichische Kontrollbank AG and is published on www.rcb.at/SecuritiesProspectus.
For any additional information you may require do not hesitate to contact us on +43 1 515 20-484.
The Team Structured Products of Raiffeisen Centrobank
