The 7% Bavaria Plus Reverse Convertible Bond combines twofixed interest payments of 7% with a partial safety mechanism for the invested capital down to the barrier of 60% (active only at the final valuation date). The interest amount is paid out annually, regardless of the performance of the three underlying shares (Allianz SE, BMW AG and Infineon Technologies AG).
The share basket of the Plus Reverse Convertible Bond consists of three Bavarian blue-chips:
- The German financial service provider Allianz SE offers insurance policies for private and professional customers. The well-established company, headquartered in Munich operates in more than 70 countries and employs around 140,000 employees.
- 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.
- The German Infineon Technologies AG is one of the leading global providers of semiconductor solutions. The company focuses on energy efficiency, mobility and security.
The certificate is redeemed at 100% of the nominal value at the maturity date (November 2022), provided that the daily closing price of each of the three underlying shares quote above the barrier of 60% 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).
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 the Product Detail Page.
Reverse Convertible Bonds - explained in an easy way
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The Team Structured Products of Raiffeisen Centrobank