The USD Barrick Gold Express certificate combines the opportunity to generate an attractive yield with the possibility for an early redemption. The share of Barrick Gold Corp.serves as underlying for the investment product without capital protection. The Express Certificate offers an attractive profit opportunity for those investors who expect this share to quote at or above the annually declining termination level (termination levels see table below) in the upcoming five years.
The certificate has a minimum term of1year and a maximum term of 5 years. If the closing price of the Barrick Gold Corp. share quotes at or above its respective termination level at one of the annual valuation dates, (early) redemption is effected according to the predefined termination price.
The longer the term is, the higher is the termination price and the lower is the termination level. If the share quotes below its termination level at the respective annual valuation date, the term extends by another year, the potential termination price rises by 10.5% and the annual terminal level declines by 10 percentage points.
|Termination level: 100% (= starting value)||Termination price: 110.5% of the nominal value|
|Termination level: 90%||Termination price: 121.0% of the nominal value|
|Termination level: 80%||Termination price: 131.5% of the nominal value|
|Termination level: 70%||Termination price: 142.0% of the nominal value|
|Termination level: 60% (= barrier)||Termination price: 152.5% of the nominal value|
In case no early redemption was effected from the first to the fourth year and if the underlying quotes below the termination level of 60% (equal to the barrier) at the fifth and final valuation date, physical delivery of the share is effected. This means that the investor receives shares of Barrick Gold Corp. in the predefined amount(nominal value/starting value). The difference to the next whole number is paid out.
Currency risk/opportunity: This certificate is not currency hedged. If the cash flows from the certificate (repayment) are later converted into another currency, additional risks as well as opportunities arise from possible fluctuations of the currency price in relation to the nominal value.
The issue price amounts to 100% (nominal value USD 1,000) within the subscription period. Further information as well as the Key Information Document please refer to the product page. 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 +43 1 515 20-484.
The Team Structured Products of Raiffeisen Centrobank