The 10% Europe Reverse Convertible Bond combines two fixed interest payments of 10% with a partial safety mechanism for the invested capital down to the barrier of 59%. The interest amount is paid out annually, regardless of the performance of the three underlying shares (Infineon Technologies AG, Koninklijke Philips NV and Siemens AG).
The share basket of the Reverse Convertible Bond consists of three heavy weights of the European economy:
- The German group Infineon Technologies AG is a leading global producer of semiconductor solutions. The company focuses on energy efficiency, mobility and security.
- The Dutch group Koninklijke Philips N.V. is one of the leading suppliers in the field of healthcare technologies. With solutions for prevention, diagnostics, therapy and care, the company covers all phases of health development..
- The German technology group Siemens AG, headquartered in Munich, is active in the fields of energy, medical technology, industry, infrastructure and urban development.
The certificate is redeemed at 100% of the nominal value at the maturity date (May 2024), provided that the daily closing price of each of the three underlying shares always quotes above the respective barrier of 59% during the observation period.
If at least one underlying price quoted at or below its respective barrier and the final value of at least one underlying quotes below the respective starting value, physical delivery of shares is effected. Regardless of which underlying violated the barrier, only the underlying with the worst performance (percentage performance from the starting value to the final value) shall be delivered to the securities account. The fixed interest rate is paid out in any case, regardless of the performance of the underlying shares.
Further information as well as the Key Information Document please find on the product page.
Reverse Convertible Bonds - explained in an easy way
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The Structured Products Team of Raiffeisen Centrobank