The Oil & Gas Index Express 6 certificate combines the opportunity to generate an attractive yield with the possibility for an early redemption. The STOXX® Europe 600 Oil & Gas 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 underlying index to quote at or above its current level within the forthcoming five years.
The certificate has a minimum term of 1 year and a maximum term of 5 years. If the closing price of the 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 the starting value at the annual valuation date, the term extends by another year (up to a maximum term of five years). At the same time, the potential annual termination price rises by 9.5% of the nominal value annually (up to a maximum of 147.5%).
If the certificate is not redeemed in the first four years and provided that 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).
Further information as well as the Key Information Document please find on the product page.
Express Certificates – explained shortly:
For any additional information you may require do not hesitate to contact us on +43 1 515 20-484.
The Certificates Team of Raiffeisen Centrobank