The 6.6% US-Technology Plus Reverse Convertible Bond combines twofixed interest payments of 6.6% with a partial safety mechanism for the invested capital down to the barrier of 59% (active only at the final valuation date). The interest amount is paid out annually, regardless of the performance of the three underlying shares (AT&T Inc., IBM Corp. und Microsoft Corp.).
The share basket of the Plus Reverse Convertible Bond consists of three heavyweights of the American technology sector:
- The Texas based AT&T Inc. is the largest telecommunications company in the world and the leading mobile and fixed network provider in the United States.
- The International Business Machines Corp. (IBM) is an American IT and consulting company based in the State of New York. IBM is one of the world's leading companies for hardware, software and services in the IT sector.
- The international hardware and software manufacturer Microsoft Corp. based in the state of Washington is known for its Windows operating system and its Office software package.
The certificate is redeemed at 100% of the nominal value at the maturity date (September 2022), provided that the daily closing price of each of the three underlying shares quote above the barrier of 59% 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).
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