The BMW Express 5 certificate combines the opportunity to generate an attractive yield with the possibility for an early redemption. The share of BMW Group serves as underlying for the investment product without capital protection. The Express Certificate offers an attractive profit opportunity for those investors who expect the BMW share to quote at or above its current level within the forthcoming five years.
The certificate has a minimum term of 1 year and a maximum term of 5 years. If the closing price of the BMW share quotes at or above its redemption level (equal to the share’s closing price at the initial valuation date) at one of the annual valuation dates, (early) redemption is effected according to the predefined redemption price.
If the share quotes below the starting value at the annual valuation date, the term extends by another year (up to a maximum term of five years). At the same time, the potential annual termination price rises by 9% of the nominal value annually (up to a maximum of 145%).
If the certificate is not redeemed in the first four years and provided that the underlying quotes below the termination level at the fifth and final valuation date, an additional safety mechanism applies: in case the closing price of the BMW share quotes above the barrier of 60% at the final valuation date, redemption is effected at 100% of the nominal value. This means investors do not generate profit and the nominal value of EUR 1,000 is redeemed.
If the barrier is touched or undercut at the final valuation date physical delivery applies. Then the investor gets the BMW shares in the amount predefined at the issue date (nominal value/strike). The difference to the integral number is paid out. In this case, the lower share price of the delivered shares may result in the loss of a major part of the capital.
Further information as well as the Key Information Document please find on the product page.
Express Certificates – explained shortly:
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The Team Structured Products of Raiffeisen Centrobank