With Raiffeisen Centrobank's 5.75% European Industries Bonus Certificate investors obtain an annual fixed coupon of 5.75% during the term of two years. Redemption at the end of the term (May 2021) depends on the performance of each of the three underlying indices (STOXX® Europe 600 Automobiles, STOXX® Europe 600 Basic Resources and STOXX® Europe 600 Insurance). 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 59% (continuous observation).
If the underlying touches or drops below the barrier of 59% of the starting value (41% safety buffer), redemption will be effected according to the underlying that performs "worst of". The opportunity for yields is in any case limited by the annual fixed coupons of 5,75%. Investors do not participate in price increases of the underlying above the starting value.
The barrier has been touched by STOXX Europe 600 Automobile & Parts EUR Price Index on March 12, 2020