The 0.5% Europe Dividend Stocks Winner 90% Capital Protection Certificate is based on the EURO STOXX® Select Dividend 30 index. The certificate addresses security-oriented investors who want to participate in a diversified European dividend stocks index and who wish their investment to be 90% capital protected at the end of the term.
During the term:
At the interest rate payout dates the interest payment of 0.5% is effected regardless of the index performance (equals EUR 5 per EUR 1,000 nominal value).
At the end of the term:
At the initial valuation date the starting value of the EURO STOXX® Select Dividend 30 index (closing price on Aug 30, 2019) and the cap (125% of the starting value) are determined. At the end of term the performance of the index is calculated and one of the following scenarios will occur:
- SCENARIO 1 – positive index performance
… and BELOW the cap of 125%
1:1 participation in the index performance, e.g.: index +20% → redemption: EUR 1,200
… but ABOVE the cap of 125%
redemption at the maximum amount, e.g.: index +50% → redemption: EUR 1,250
- SCENARIO 2 – negative index performance
… but ABOVE 90 % of the starting value
1:1 participation in the index performance, e.g.: index -5% → redemption: EUR 950
… and BELOW 90 % of the starting value
redemption at the capital protection amount, e.g.: index -20% → redemption: EUR 900
The 90% capital protection by Raiffeisen Centrobank AG only applies at maturity, i.e. during the term the certificate price may drop below 90%, but the investor obtains at least 90% of the nominal value at the end of the term. Further information as well as the Key Information Document can be found on the Product Page.
Capital Protection Certificates – simply explained:
For any additional information you may require do not hesitate to contact us on +43151520484.
The Structured Products Team of Raiffeisen Centrobank