The certificate Sustainability Bond 90% IV is based on the STOXX® Global ESG Leaders Select 50, a global benchmark of 50 sustainable stock titles. The certificate addresses security-oriented investors who consider ethical, ecological and social criteria in their investment decisions and hence are looking for a sustainable investment.
At the initial valuation date the starting value of the STOXX® Global ESG Leaders Select 50 index (closing price on July 22, 2020) is determined. At the final valuation date (July 23, 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 → redemption at 132%
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 132% of the nominal amount. This equals the maximum amount of EUR 1,320 per EUR 1,000 nominal value.
b) Index ≥ 90 % and < 100 % of the starting value →redemption 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 STOXX® Global ESG Leaders Select 50 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