The 7.5% Social Media Reverse Convertible Bond combines two fixed interest payments of 7.5% with a partial safety mechanism for the invested capital down to the barrier of 55%. The interest amount is paid out annually, regardless of the performance of the two underlying (Facebook Inc. and Twitter Inc.).
The share basket of the Reverse Convertible Bond consists of two market leaders in the social media industry:
The international IT company Facebook Inc. is known for its social network Facebook as well as for the two services Whatsapp and Instagram. The company, based in Silicon Valley, focuses on the development of technologies for the straightforward sharing of information.
The short message service Twitter, with currently over 200 million daily users worldwide, is operated by the company Twitter Inc. founded in 2006.
If the daily closing prices of the two underlying shares (Facebook Inc, Twitter Inc.) always quote above the respective barrier of 55% during the observation period, or if the closing prices of each shares quote at or above their respective strike at the final valuation date, the certificate is redeemed at 100% of the nominal value.
Otherwise, physical delivery of the share with the lowest performance is effected.
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