The 6.75% Europe Protect Reverse Convertible Bond combines twofixed interest payments of 6.75% with a partial safety mechanism for the invested capital down to the barrier the barrier of 55%. The interest amount is paid out annually, regardless of the performance of the three underlying shares (Airbus SE, ING Groep N.V. and Sanofi S.A.).
The share basket of the Protect Reverse Convertible Bond consists of three heavyweights of the European economy:
- 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.
- ING Groep N.V. is a Dutch multinational banking and financial services corporation. It is one of worldwide 29 systemically important financial institutions. The group offers banking services to more than 38 million retail and wholesale banking customers in over 40 countries.
- The French Sanofi S.A. is one of the world‘s leading pharmaceutical companies. The company focuses on the areas of diabetes, cardiovascular diseases, vaccinations and specialty care.
The certificate is redeemed at 100% of the nominal value at the maturity date (September 2021), provided that the daily closing price of each of the three underlying shares always quotes above the respective barrier of 55% 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