The USD Oil Bonus Certificate 2 combines the opportunity for an attractive bonus yield with a partial protection for the invested capital. Because of its initial safety buffer of 30% the USD Oil Bonus Certificate 2 is a suitable investment for all investors who look for less risk compared to a direct investment and who wish to generate above-average yield even in sideways moving markets.
With the USD Oil Bonus Certificate 2 the starting value (settlement price of the Brent Crude Oil Future and the barrier (70% of the starting value) are determined at the initial valuation date. At the maturity date (March 2022) investors receive the bonus amount of EUR 113 per certificate, provided that the settlement price of Brent Crude Oil never touches or undercuts the barrier during the observation period (daily observation).
In case the underlying declines by 30% or more compared to the starting value, the bonus mechanism will be suspended. In this case redemption at the maturity date is effected according to the performance of the underlying (percentage performance of oil from the starting value to the settlement price at the final valuation date). Even if the bonus mechanism is suspended, the maximum amount remains limited at EUR 113 per certificate and investors do not participate in price increases of oil beyond the cap.
This certificate is denominated in USD. 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.
Further information as well as the Key Information Document can be found on the product page.
Bonus 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