The 8.25% Europe Reverse Convertible Bond combines twofixed interest payments of 8.25% 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 (Infineon Technologies AG, ING Groep NV and Sanofi Aventis S.A.).
The share basket of the Reverse Convertible Bond consists of three heavy weights of the European economy:
- The German group Infineon Technologies AG is a leading global producer of semiconductor solutions. The company focuses on energy efficiency, mobility and security.
- ING Groep N.V. is a Dutch bancassurance service provider headquartered in Amsterdam. In Austria, the company is best known for its ING-DiBa brand.
- Sanofi Aventis S.A. is a French pharmaceutical group formed in 2004 by the merger of Sanofi-Synthélabo and Aventis. One of the largest pharmaceutical groups in the world in terms of sales.
The certificate is redeemed at 100% of the nominal value at the maturity date (October 2023), 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, 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).
Further information as well as the Key Information Document please find on the product page.
Reverse Convertible Bonds - explained in an easy way
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The Team Structured Products of Raiffeisen Centrobank