The 6.75% Germany 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 (Continental AG, E.ON SE and Munich Re AG).
The share basket of the Reverse Convertible Bond consists of three German blue chips:
- Continental AG is a German automotive manufacturing company based in Hanover. The company has developed from a pure tyre manufacturer to one of the largest automotive suppliers in the world.
- The German energy group E.ON SE provides both renewable as well as traditional ways of power generation for its core markets Germany, Sweden and CEE.
- Munich RE AGis one of the top providers of reinsurance, primary insurance, and insurance-related risk solutions in the world. Munich Re has a diversified organization structure and offices across more than 50 countries.
The certificate is redeemed at 100% of the nominal value at the maturity date (February 2022), 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, soleyly 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