The 10% Germany Protect Reverse Convertible Bond offers a fixed annual interest rate of 10%. At the maturity date (May 2020) the certificate is redeemed at 100% of the nominal value if the daily closing price of each underlying share (Commerzbank AG, RWE AG, Volkswagen preference shares) always quoted above the respective barrier of 59% during the observation period (daily observation).
In case the barrier is touched or undercut by at least one of the underlying shares and the daily closing price of all shares is at or above the respective strike at the final valuation date, the product is also redeemed at 100% of the nominal value.
In case the barrier is touched or undercut by at least one of the underlying shares and the closing price of at least one share quotes below its strike at the final valuation date, the predefined amount of the worst performing share (percentage performance from the starting value 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 starting value.
The barrier has been touched by Commerzbank AG on 17.12.2018