The 6.5% Europe Reverse Convertible Bond combines twofixed interest payments of 6.5% 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 (Daimler AG, Koninklijke Philips N.V. and SAP SE).
The share basket of the Reverse Convertible Bond consists of three heavy weights of the European economy:
- Daimler AG is one of the biggest producers of premium cars and commercial vehicles. Today, the company‘s development focus is primarily on alternative drives in the field of sustainable mobility.
- The Dutch group Koninklijke Philips N.V. is one of the leading suppliers in the field of healthcare technologies. With solutions for prevention, diagnostics, therapy and care, the company covers all phases of health development.
- The German IT giant SAP SE is the largest European software producer and market leader for business software. Approximately 77% of global transaction revenue passes through SAP systems.
The certificate is redeemed at 100% of the nominal value at the maturity date (June 2023), 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 Team Structured Products of Raiffeisen Centrobank