With Raiffeisen Centrobank's 5% European Industries Bonus Certificate investors obtain an annual fixed coupon of 5% during the term of three years. Redemption at the end of the term (August 2021) depends on the performance of each of the three underlying indices (EURO STOXX® Banks, STOXX® Europe 600 Basic Resources, STOXX® Europe 600 Health Care). The certificate is redeemed at 100% of the nominal value at the maturity date, provided that, during the observation period, the price of each of the three underlying indices always quoted above the barrier of 50% (continuous observation).
If the underlying touches or drops below the barrier of 50% of the starting value (50% safety buffer), redemption will be effected according to the underlying that performs "worst of" (percent share performance from the starting value to the closing price at the final valuation date). The opportunity for yields is in any case limited by the annual fixed coupons. Investors do not participate in price increases of the underlying above the starting value.
The barrier has been touched by EURO STOXX® Banks on March 12, 2020