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 life permanently. Megatrends are particularly robust and withstand temporary resets without losing their momentum. Many investors are aware of their enormous importance and position themselves accordingly.
In order to enable investors to invest sustainably in megatrends, Raiffeisen Centrobank and the renowned index provider STOXX Ltd. collaborated to establish the ESG-compliant iSTOXX® Global Megatrends Select 50 Price EUR index which comprises businesses along the following nine megatrends: Infrastructure, Sharing Economy, Industry 4.0, Smart Cities, Housing Construction, Next Generation Telecoms, Millennials, Fintech and Silver Economy.
The certificate offers the opportunity for redemption of 100 % plus an additional coupon of 35% (equals to 6.2% p.a.) at the end of the term. The barrier of 60% of the index starting value serves as a protective mechanism and is only observed at the end of the term.
Redemption at the end of the term:
- SCENARIO 1a: Index closing price ≥ 100% of the starting value
If the closing price of the index on the final valuation date quotes at/above the starting value, investors receive 100% of the nominal value and an additional coupon of 35% of the nominal value at maturity. This respresents the maximum amount of EUR 1,350 per nominal amount.
SCENARIO 1b: Index closing price < 100% but > 60% of the starting value (barrier)
If the closing price of the iSTOXX® Global Megatrends Select 50 Price EUR index quotes below the starting value but above the barrier of 60% of the starting value on the final valuation date, the redemption is effected at 100% of the nominal value. On the maturity date, investors will receive the bonus amount of EUR 1,100 per nominal value.
- SCENARIO 2: Index closing price ≤ 60% of the starting value (barrier)
If the closing price of the iSTOXX® Global Megatrends Select 50 Price EUR index quotes at or below the barrier of 60% of the starting value on the final valuation date, the nominal value minus the negative performance of the index (percentage performance from the starting value to the closing price on the final valuation date) is paid out.
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.
Bonus Certificates – explained shortly:
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