PROTECT REVERSE CONVERTIBLE BONDS – limited protection until the barrier
In case of Reverse Convertible Bonds at the maturity date interest on the nominal value will be paid out irrespective of the performance of the underlying. The interest rate comes off considerably above market level which, compared to a direct investment, provides for a risk buffer.
Protect Reverse Convertible Bonds issued by Raiffeisen Centrobank are additionally furnished with a barrier being set below the strike. This provides for an additional safety mechanism: if the barrier is never touched or undercut during the observation period, the Reverse Convertible Bond is redeemed at its nominal value at the maturity date – even if the underlying quotes below the strike. At the end of the term one of the two scenarios will occur:
SCENARIO 1: Underlying always quoted above the barrier
Provided that during the observation period the underlying always quotes above the barrier, the nominal value is paid out at 100 %, even if the underlying quotes below the strike.
SCENARIO 2: Underlying touched or dropped below the barrier
In case the barrier is violated during the one and a half year term AND the underlying closes at or below the barrier at the final valuation date, the investor is credited the predefined amount of shares per EUR 1,000.- nominal value.
The Reverse Convertible Bonds are based on the Austrian companies Andritz AG, OMV AG, Telekom Austria AG and voestalpine AG.
Key Facts:
- Initial valuation date: Feb 11, 2014
- Term: 1.5 years (Maturity date: Aug 12, 2015)
- Public offer in: Austria, Germany, Czech Republic, Poland, Hungary, Slovakia
- Listing: Vienna, Frankfurt, Stuttgart
Further information is available at the overview page: In Subscription: Protect Reverse Convertible Bonds
For more details kindly see the Product Folder (PDF).
This product, the risks and terms and conditions associated with it, are subject to and governed by the Prospectus (including all supplements and amendments thereto) approved by the Austrian Financial Market Authority, which has been deposited at Oesterreichische Kontrollbank AG and is published on www.rcb.at/SecuritiesProspectus.
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
