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The 9.5% Europe Reverse Convertible Bond combines two fixed interest payments of 9.5% 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 (AXA S.A., BMW AG and Siemens AG).
The share basket of the Reverse Convertible Bond consists of three heavy weights of the European economy:
- The French group AXA S.A. focuses on pension and insurance products. Worldwide, the
Paris-based company employs more than 149,000 people in 64 countries.
- 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 technology group Siemens AG, headquartered in Munich, is active in the fields of energy, medical technology, industry, infrastructure and urban development.
The certificate is redeemed at 100% of the nominal value at the maturity date (May 2024), 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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For any additional information you may require do not hesitate to contact us on +43151520484.
The Structured Products Team of Raiffeisen Centrobank
