The 5.2% Erste Group / Bayer Protect Reverse Convertible Bond is redeemed at 100% nominal value at the maturity date (December 2019), provided that, during the observation period, the closing price of each of the two underlying shares (Erste Group Bank AG, Bayer AG) always quoted above the barrier of 59% (daily observation). The interest amount of 5,2% is paid out annually, regardless of the performance of the underlying shares.
In case the barrier is touched or undercut by at least one of the two underlying shares, but both underlying shares quote at or above their strike at the final valuation date, the product is redeemed at 100% nominal value.
In case the barrier is touched or undercut by at least one of the underlying shares and at least one of the underlying shares quotes below its strike at the final vauation date, the predefined amount of the worst performing share (percentage performance from the strike to the closing price at the final valuation date) will be delivered. Even if the barrier is touched or undercut, investors do not participate in price increases of the underlyings beyond the strike.
The barrier has been touched by Bayer AG on Dec. 27, 2018