The certificate Dividend Stocks Bond 90% VII is based on the STOXX® Global Select Dividend 100 Price EUR index, which contains 100 high-dividend stocks. Security-oriented investors who expect the global dividend share index STOXX® Global Select Dividend 100 Price EUR to develop positively over the next 8 years, but at the same time want to have a large part of their invested capital covered, can use this certificate to position themselves for this market scenario.
At the initial valuation date the starting value of the STOXX® Global Select Dividend 100 Price EUR index (closing price on November 19, 2020) is determined. At the final valuation date (November 15, 2028) the closing price of the index is compared to the starting value and one of the following scenarios will apply:
- SCENARIO 1: Index AT/ABOVE 90% of the starting value
a) Index ≥ 100% of the starting value → redemption at 124%
If the closing price of the index at the final valuation date is equal to or higher than the starting value, the redemption on the maturity date will be 124% of the nominal amount. This equals the maximum amount of EUR 1,240 per EUR 1,000 nominal value.
b) Index ≥ 90% and < 100 % of the starting value → redemption at 100%
If the closing price of the index at the final valuation date is less than 100% but at least 90% of the starting value, the payout on the redemption date will be 100% of the nominal value. This corresponds to EUR 1,000 per EUR 1,000 nominal amount.
- SCENARIO 2: Index BELOW 90% of the starting value
If the closing price of the index at the final valuation date is below 90% of the starting value, the capital protection will apply and the certificate will be repaid on the maturity date at 90% of the nominal value (equivalent to EUR 900 per nominal value).
The 90% capital protection by Raiffeisen Centrobank AG only applies at maturity, i.e. during the term the certificate price may drop below 90%, but the investor obtains at least 90% of the nominal value at the end of the term.
Details on the STOXX® Global Select Dividend 100 index as well as the current list of index members can be found on the website of the index provider STOXX Ltd.
Capital Protection Certificates – simply explained:
For any additional information you may require do not hesitate to contact us on +43 1 515 20-484.
The Team Structured Products of Raiffeisen Centrobank