The 6% Automobile Plus Reverse Convertible Bond combines twofixed interest payments of 6% with a partial safety mechanism for the invested capital down to the barrier of 62% (active only at the final valuation date). The interest amount is paid out annually, regardless of the performance of the three underlying shares (BMW AG, Daimler AG und Volkswagen AG preferential shares).
The share basket of the Plus Reverse Convertible Bond consists of three Bavarian blue-chips:
- Bayerische Motoren Werke AG is a leading producer of premium passenger cars and motorcycles with the brands BMW, Mini and Rolls-Royce. The group focuses solely on the premium segment throughout its entire brand range.
- Daimler AG is one of the biggest producers of premium cars and commercial vehicles. Its product range spans from high-quality small cars to large commercial trucks.
- Volkswagen AG is engaged in developing and manufacturing passenger cars under its brands Audi, Bentley, Bugatti, Lamborghini, Porsche, Seat, Skoda und VW as well as commercial vehicles under brands like Scania and MAN.
The certificate is redeemed at 100% of the nominal value at the maturity date (April 2023), provided that the daily closing price of each of the three underlying shares quote above the barrier of 62% 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 the Product Detail Page.
Reverse Convertible Bonds - explained in an easy way
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The Team Structured Products of Raiffeisen Centrobank