The 7.5% Technology Protect 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 shares (Infineon Technologies AG, Koninklijke Philips NV and SAP SE).
The share basket of the Protect Reverse Convertible Bond consists of three leading companies of the European technology sector:
- The German company Infineon Technologies AG is a worldwide leading supplier of semiconductors. The company focuses on energy efficiency, mobility and safety.
- The Dutch group Koninklijke Philips N.V. is one of the leading health technology providers. The company employs approximately 78,000 people and operates in more than 100 countries.
- The German SAP SE is the biggest European software development company. It is mainly known for its business software solutions.
The certificate is redeemed at 100% of the nominal value at the maturity date (November 2021), provided that the daily closing price of each of the three underlying shares always quotes above the respective barrier of 59% 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).
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 Structured Products Team of Raiffeisen Centrobank