The Europe Sustainability Express certificate combines the opportunity to generate an attractive yield with the possibility for an early redemption. The STOXX® Europe ESG Leaders Select 30 Index serves as underlying for the investment product without capital protection. The Express Certificate offers an attractive profit opportunity for those investors who expect the price of the index to quote at or above its current level within the forthcoming five years.
The certificate has a minimum term of1year and a maximum term of 5 years. If the closing price of the STOXX® Europe ESG Leaders Select 30 Index quotes at or above its redemption level (equal to the index 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 index quotes below its termination level at the respective annual valuation date, the term extends by another year and the potential annual termination price increases by 5.5% to a maximum of 27.5% of the nominal value. This means, the longer the term, the higher the potential termination price (between 105.5% and 127.5% of the nominal value).
If no early redemption was effected from the first to the fourth year and if 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 index 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, redemption is effected analogue to the index performance and the investor will generate a loss (percentage performance from the index starting value to the closing price at the final valuation date).
Details about the underlying
Current information on the STOXX Europe ESG Leaders Select 30 index as well as a list of all index members can be found on the website of the index provider STOXX Ltd.
Express 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