The 8.25% Europe Protect Reverse Convertible Bond combines twofixed interest payments of 8.25% with a partial safety mechanism for the invested capital down to the barrier of 59%. The interest amount is paid out annually, regardless of the performance of the three underlying shares (Airbus SE, Anheuser-Busch InBev N.V., Deutsche Lufthansa AG).
The share basket of the Protect Reverse Convertible Bond consists of three European blue chips:
- The company Airbus SE is the biggest European aviation company and the second largest worldwide. The aircraft manufacturer operates over 70 R&D and production sites mainly in Germany and France.
- The multinational Anheuser Busch InBev N.V. represents the world’s largest brewery group, operating well-known beer brands such as Budweiser, Corona, Stella Artois, Beck‘s and Franziskaner.
- DeutscheLufthansa AG is the largest European airline company in terms of annual passenger traffic. In German-speaking countries it is mainly known for its airlines Lufthansa, Austrian Airlines and SWISS.
The certificate is redeemed at 100% of the nominal value at the maturity date (November 2020), 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).
Further information as well as the Key Information Document please find on Product Page.
Reverse Convertible Bonds - simply explained
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The Structured Products Team of Raiffeisen Centrobank
The product described herein is subject to and governed by the Base Prospectus (including all supplements and amendments thereto) approved by the Austrian Financial Market Authority (FMA). The Base Prospectus has been deposited at the Oesterreichische Kontrollbank AG, published at www.rcb.at/securitiesprospectus and contains the risks and terms and conditions of the product.
Additional information may also be obtained from the key information document of the product published at www.rcb.at. Raiffeisen Centrobank AG is subject to supervision by the FMA and the Austrian National Bank as well as the European Central Bank within the Single Supervisory Mechanism (Council Regulation (EU) No 1024/2013).
