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, provides for a risk buffer. Redemption of the Reverse Convertible at the end of the term depends on the closing price of the underlying at the final valuation date.
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. If the barrier is never touched or undercut during the observation period, the Reverse Convertible Bond is redeemed at its nominal value at the maturity date even if the underlying quotes below the strike.
The Reverse Convertible Bonds are based on the Austrian companies Andritz AG, Erste Group Bank AG or voestalpine AG.
Key Facts:
- Initial valuation date: Jun 25, 2013
- Term: 1 year (Maturity date: Jan 29, 2014)
- Listing: Vienna, Stuttgart, Frankfurt
Further information is available at the overview page: In Subscription: Reverse Convertible Bonds (6).
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
