The certificate Europe Dividend Stocks Memory Bonus&Safety is based on the European EURO STOXX® Select Dividend 30 index. This certificate is suited for investors who expect a stable performance of the underlying index in the upcoming 5 years and who deem price slumps of 51% or more unlikely to occur.
The possible annual yield is 6% of the nominal value. The initial distance to the barrier (safety buffer) is 51% and the term of the certificate is 5 years.
Annual yield opportunity:
If the index closing price quotes at or above the starting value at the annual valuation date, the yield of 6% (equals EUR 60 per EUR 1,000 of the nominal value) is paid out. If the closing price on an annual valuation date quotes below the starting value, the interest payment will not be paid out for the affected year. Forgone payments can be caught up in the following year.
Redemption at maturity
Redemption of the nominal value at the end of the term depends on the performance of the underlying index. Redemption is effected at 100% at maturity (October 2024) provided that the EURO STOXX® Select Dividend 30 index always quotes above the barrier of 49% of the starting value (=closing price on October 8, 2019) during the observation period.
If the barrier is violated by the underlying index, redemption at the maturity date is effected according to the index performance (percentage performance from the starting value to the closing price at the final valuation date). Even if the barrier is touched or undercut investors do not participate in price gains above the starting value.
The issue price amounts to 100% (nominal value EUR 1,000) within the subscription period. Further information as well as the Key Information Document can be found on the product page.
Bonus Certificates – explained shortly:
For any additional information you may require do not hesitate to contact us on +43151520484.
The Structured Products Team of Raiffeisen Centrobank