The certificate Europe/USA Bonus&Safety 2 is based on two well-known stock indices. The EURO STOXX 50® index and the S&P 500® index serve as underlyings for this certificate.
This investment product is suited for investors who expect the European shares benchmark as well as the US-american index to perform stably in the upcoming five years and who deem price slumps of 51% or more unlikely to occur.
The certificate Europe/USA Bonus&Safety 2 combines the opportunity to obtain a bonus yield of 20% at the end of the term (equals 3.7% p.a.) with partial protection for the invested capital. The initial distance to the barrier (safety buffer) is 51% and the certificate has a term of five years.
At the maturity date (January 2026) the Bonus Certificate will be redeemed at the bonus amount of EUR 1,200 per nominal value, provided that the EURO STOXX 50® index and the S&P 500® index always quote above their barrier of 49% of the respective starting value (= respective closing price on January 28, 2021) during the observation period.
If the barrier is violated by at least one of the underlying indices, redemption at the maturity date is effected according to the index which performs “worst of“ (percentage index performance from the starting value to the closing price at the final valuation date). Even then the maximum amount remains limited at EUR 1,200 per nominal value and investors do not participate in price increases of the underlyings beyond the bonus level = cap.
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 detail page.
Details on the EURO STOXX 50® index as well as the current list of index members can be found on the website of the index provider STOXX Ltd. For details on the S&P 500® Index visit the www.spglobal.com.
Bonus 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