The 6.25% Industrial Protect Reverse Convertible Bond combines twofixed interest payments of 6.25% 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 (Airbus SE, Schneider Electric SE and Siemens AG).
The share basket of the Protect Reverse Convertible Bond comprises three well-known European industrial stocks:
- Airbus SE is the second largest aerospace company in the world by revenue. The business units of the company can be roughly divided into passenger aircrafts, helicopters, defense/security and space. The Airbus share is currently included in several benchmark indices, like the MSCI World, the EURO STOXX® 50 as well as the French CAC 40.
- The French multinational corporation Schneider Electric SE is a leading player in the digital transformation of energy management and automation. The company has approximately 144,000 employees and operations in more than 100 countries.
- The German technology group Siemens AG headquartered in Munich operates in the energy, healthcare, infrastructure and urban development industries. The company employs around 377,000 people in more than 200 countries.
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