The certificate 3.25% Europe/Gold Bonus&Safety is based on the best-known equity benchmark in the euro zone, the EURO STOXX 50® index and the gold price. This investment product without capital protection is suited for investors who expect these two underlyings to perform stably in the upcoming five years and who deem price slumps of 51% or more unlikely to occur. The certificate combines fixed interest payments of 3.25% p.a. with partial protection for the invested capital. The initial distance to the barrier (safety buffer) is 51%. The certificate has a term of five years.
Redemption of the nominal value at the end of the term depends on the performance of the two underlyings. Redemption is effected at 100% at maturity (October 2025) provided that daily closing price of the EURO STOXX 50® index and the daily gold settlement price (London Afternoon Fixing) always quote above their barrier of 49% of the respective starting value (= respective closing price on October 8, 2020) during the observation period.
If the barrier is violated by at least one of the underlyings, redemption at the maturity date is effected according to the underlying which performs “worst of“ (percentage underlying’s performance from the starting value to the closing price at the final valuation date). Even if the barrier is touched or undercut investors do not participate in price gains above the respective starting value.
Further information as well as the Key Information Document can be found on the product page.
Details on the EURO STOXX 50® index as well as the current list of index members can be found on the website of the index provider STOXX Ltd.
Bonus Certificates – explained shortly:
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