The 6.5% Austria Plus Reverse Convertible Bond combines twofixed interest payments of 6.5% with a partial safety mechanism for the invested capital down to the barrier of 60% (active only at the final valuation date). The interest amount is paid out annually, regardless of the performance of the two underlying shares (Erste Group Bank AG and OMV AG).
The share basket of the Plus Reverse Convertible Bond consists of two heavyweights of the Austrian economy:
- Erste Group Bank AG is one of the largest financial services providers in Central- and Eastern Europe. The bank’s main focus is on the private banking business.
- OMV AG is an integrated oil and gas company, active both in the up- and downstream businesses. OMV has a balanced international upstream portfolio while its downstream oil and gas business features a European footprint.
The certificate is redeemed at 100% of the nominal value at the maturity date (October 2022), provided that the daily closing price of each of both underlying shares quote above the barrier of 60% of each respective strike on the final valuation date (observation only at maturity).
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).
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 Team Structured Products of Raiffeisen Centrobank