The 5.75% Oil&Gas Protect Reverse Convertible Bond combines twofixed interest payments of 5.75% 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 shares (OMV AG, Royal Dutch Shell PLC and Total S.A.).
The share basket of the Protect Reverse Convertible Bond consists of three companies from the Oil & Gas Industry:
- OMV AG is an integrated oil and gas company, active in both the up- and downstream businesses. OMV has a balanced international upstream portfolio while its downstream oil and gas business features a European footprint.
- Royal Dutch Shell PLC is one of the world‘s largest oil and gas companies by revenue and market capitalization. The company operates in over 70 countries and employs more than 82,000 people. Shell focuses on the exploration, development, production, refining and marketing of oil and natural gas.
- Total S.A. ranks among the world‘s largest oil and gas companies by revenue and market capitalization. The company is active in over 130 countries and employs more than 100,000 people. Total operates along the entire energy value chain, from the exploration wells to the end client.
The certificate is redeemed at 100% of the nominal value at the maturity date (July 2021), 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, 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 Product Page.
Reverse Convertible Bonds - explained in an easy way
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The Structured Products Team of Raiffeisen Centrobank