The 7.5% Streaming Reverse Convertible Bond combines twofixed interest payments of 7.5% with a partial safety mechanism for the invested capital down to the barrier the barrier of 59%. The interest amount is paid out annually, regardless of the performance of the three underlying (Amazon.com Inc., Netflix Inc. and Spotify Technology S.A.).
The share basket of the Reverse Convertible Bond consists of three market leaders in the streaming industry:
Amazon.com Inc. operates Prime Video, one of the largest video-on-demand platforms, with just over 200 million subscribers worldwide.
Netflix Inc. is currently the world‘s largest video-on-demand provider with over 200 million subscribers.
Spotify Technology S.A. is currently the largest audio streaming service provider with more than 350 million monthly users and nearly 160 million paying subscribers.
The certificate is redeemed at 100% of the nominal value at the maturity date (July 2023), 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, solely 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).
The issue price amounts to 100 % (nominal value EUR 1,000) within the subscription period. 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