The 11.75% Vaccine Reverse Convertible Bond combines two fixed interest payments of 11.75% with a partial safety mechanism for the invested capital down to the barrier of 55%. The interest amount is paid out annually, regardless of the performance of the two underlying (BioNTech SE and Moderna, Inc.).
The share basket of the Reverse Convertible Bond consists of two pharmaceutical companies, successfully launching a vaccine against COVID-19 on the market:
BioNTech SE is a German biotechnology company listed on the stock exchange since the end of 2019. Biontech's focus is on mRNA-based drug discovery. As of early 2020, Biontech developed the BNT162b2 vaccine against the human coronavirus SARS-CoV-2, which will be packaged at Pfizer facilities for global use.
Moderna, Inc. is a U.S. biotechnology company that specializes 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 infection.
If the daily closing prices of the two underlying shares (BioNTech SE and Moderna, Inc.) always quote above the respective barrier of 55% during the observation period, or if the closing prices of each shares quote at or above their respective strike at the final valuation date, the certificate is redeemed at 100% of the nominal value.
Otherwise, physical delivery of the share with the lowest performance is effected.
The issue price amounts to 100 % (nominal value EUR 1,000) within the subscription period. Further information as well as the Key Information Document please find on Product Page.
Reverse Convertible Bonds - explained in an easy way
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The Team Structured Products of Raiffeisen Centrobank