Megatrends are major social, economic, political and technological changes that have the potential to change the world sustainably. They usually lead to fundamental social change and can shape our everyday lives permanently. Megatrends are particularly robust and can withstand temporary resets without losing their dynamics.
In order to enable investors to invest sustainably in megatrends, Raiffeisen Centrobank together with the renowned index provider STOXX Ltd. developed the ESG-compliant iSTOXX® Global Megatrends Select 50 Price EUR index, which comprises the following nine megatrends:
- Sharing economy
- Industry 4.0
- Smart cities
- Housing construction
- Next generation telecoms
- Silver economy
This index serves as the underlying for the new capital protection certificate Megatrends Bond 90% II, which enables investors to achieve a return of 30% (3.8% p.a.) if the index is listed at or above 100% of the starting value at the end of the term.
At the initial valuation date the starting value of the iSTOXX® Global Megatrends Select 50 Price EUR index (closing price on June 16, 2020) is determined. At the final valuation date (June 14, 2027) 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 àredemption at 130%
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 130% of the nominal amount. This equals the maximum amount of EUR 1,300 per EUR 1,000 nominal value.
b) Index ≥ 90 % and < 100 % of the starting value àredemption 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.
The issue price amounts to 100% (nominal value EUR 1,000) within the subscription period. Further information as well as the Key Information Document please find on Product Page.
Details on the iSTOXX® Global Megatrends Select 50 Price EUR 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