Reach Your Target by Express. The SAP Express certificate combines the opportunity to generate an attractive yield with the possibility for an early redemption from the second year onwards. The share ofSAP SE serves as underlying for the investment product without capital protection. For investors who expect the price of this stock to rise or at least remain constant over the next five years, the Express Certificate offers an annual yield opportunity of 5% of the nominal value.
The certificate has a minimum term of at least twoyears and a maximum term of 5 years. If the closing price of the SAP SE share quotes at or above its redemption level (equal to the share’s closing price at the initial valuation date) at one of the annual valuation dates, (early) redemption is effected analogue to the predefined redemption price.
If the share 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 5% of the nominal value annually (up to a maximum of 125%).
In case no early redemption was effected from the second 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 SAP SE share 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 physical delivery applies. Then the investor gets the SAP SE shares in the amount predefined at the issue date (nominal value/strike). The difference to the integral number is paid out. In this case, the lower share price of the delivered shares may result in the loss of a large part of the capital.
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