The 5.7% Health Care Reverse Convertible Bond combines twofixed interest payments of 5.7% with a partial safety mechanism for the invested capital down to the barrier the barrier of 59%. The interest amount is paid out annually, regardless of the performance of the three underlying (Fresenius SE & Co. KGaA, Koninklijke Philips N.V. and Sanofi S.A.).
The share basket of the Reverse Convertible Bond consists of three heavy weights of the health care sector:
- The German health care group Fresenius SE & Co. KGaA, an international dialysis specialist, supplies hospitals with medical equipment and provides transfusions to patients.
- The Dutch group Koninklijke Philips N.V. counts among the leading providers of technology in the health care sector. The company covers all stages of the health care cycle: prevention, diagnostics, therapy and care.
- The French Sanofi S.A. group is a globally leading pharmaceutical company. The business focuses on the fields of diabetes, cardiovascular diseases, vaccinations and specialty care.
The certificate is redeemed at 100% of the nominal value at the maturity date (March 2022), 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 (daily observation).
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, solely 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).
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 Structured Products Team of Raiffeisen Centrobank