The 10% Vaccine Plus Reverse Convertible Bond combines twofixed interest payments of 10% with a partial safety mechanism for the invested capital down to the barrier of 60% (only observed at maturity). The interest amount is paid out annually, regardless of the performance of the three underlying shares (Johnson & Johnson, Moderna, Inc. and Pfizer Inc.).
The share basket of the Reverse Convertible Bond consists of 3 US pharmaceutical companies, all of them successfully launching a vaccine against COVID-19 on the market::
- After the Corona vaccine of the US pharmaceutical company Johnson & Johnson was released for the American market at the end of February, approval in Europe also followed in mid-March. The preparation is the first in the series of COVID vaccines, of which only one dose needs to be administered to achieve the full protective effect.
- The vaccine from the US pharmaceutical giant Pfizer Inc. is a so-called mRNA vaccine, which has been shown in studies to be particularly effective in preventing COVID -19
disease. In addition, the vaccine is mostly well tolerated and can therefore be used in all age groups.
- Moderna, Inc. is a US biotechnology company specializing in the research and development of mRNA-based drugs. The company‘s CoV vaccine is also based on this technology and, like Pfizer‘s, has been shown to provide a high level of protection against infections.
The certificate is redeemed at 100% of the nominal value at the maturity date (May 2023), provided that the daily closing price of each of the three underlying shares quote above the barrier of 60% of each respective strike on the final valuation date (observation only at maturity).
If one of the barriers is touched or undercut by the daily closing price of at least one of the underlying shares and at least one of these shares closes below its strike at the final valuation date, the predefined amount of the worst performing share is delivered (percentage performance from the starting value to the closing price at the final valuation date).
Further information as well as the Key Information Document please find on the Product Detail Page.
Reverse Convertible Bonds - explained in an easy way
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The Team Structured Products of Raiffeisen Centrobank