The certificate Europe Inflation Bonus&Safety 11 is based on the best-known equity benchmark in the euro zone, the EURO STOXX 50® index.
In addition to the annual fixed interest rate of 1%, the investment product without capital protection pays a variable interest rate in the amount of the positive annual change rate of the consumer price index for the euro zone. The initial distance to the barrier (safety buffer) is 51% and the term is five years.
The interest rate is composed of a fixed and a variable component and is paid out annually in any case, regardless of the performance of the underlying index. The minimum interest rate is 1% p.a.; in addition, the positive inflation rate is paid out as extra interest:
1% Fixed annual interest rate + Annual additional interest rate (positive rate of change euro area HICP excl. tobacco) = Total annual interest rate
Redemption of the nominal value at the end of the term depends on the performance of the underlying. Redemption is effected at 100% at maturity (October 2027) provided that the daily closing price of the EURO STOXX 50® index always quotes above the barrier of 49% of its starting value (= respective closing price on September 6, 2022) during the observation period.
If the barrier is violated by the underlying, redemption at the maturity date is effected according to the underlying performance (percentage underlying’s 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 respective starting value.