The 8.5% Health Care Protect Reverse Convertible Bond combines afixed interest payment of 8.5% with a partial safety mechanism for the invested capital down to the barrier of 55%. The interest amount is paid out at the end of the term, regardless of the performance of the two underlying shares (Bayer AG and Fresenius SE & Co. KGaA).
The share basket of the Protect Reverse Convertible Bond consists of two German shares in the health care sector:
- The life science group Bayer AG operates in the chemical and pharmaceutical industry. The company‘s core competencies are in health care and agriculture.
- The German health care group Fresenius SE & Co. KGaA, an international dialysis specialist, supplies hospitals with medical equipment and provides transfusions to patients.
The certificate is redeemed at 100% of the nominal value at the maturity date (February 2020), provided that the daily closing price of each of the two 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, the predefined amount of the worse 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 - explained in an easy way
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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).
