The 11.75% Austria Reverse Convertible Bond combines two fixed interest payments of 11.75% with a partial safety mechanism for the invested capital down to the barrier of 59%. The interest amount is paid out annually, regardless of the performance of the three underlying shares (Erste Group Bank AG, OMV AG and voestalpine AG).
The share basket of the Reverse Convertible Bond consists of three heavy weights of the Austrian economy:
- Erste Group Bank AG, the universal bank with a focus on the private client sector concentrates primarily on the markets of Central and Eastern Europe.
- OMV AG is an integrated, international oil and gas company with activities in the up- and downstream sector.
- voestalpine is one of the world‘s leading technology group with a focus on product and system solutions made of steel and other metals.
The certificate is redeemed at 100% of the nominal value at the maturity date (September 2024), provided that the daily closing price of each of the three underlying shares always quotes above the respective barrier of 59% during the observation period.
If at least one underlying price quoted at or below its respective barrier and the final value of at least one underlying quotes below the respective starting value, physical delivery of shares is effected. Regardless of which underlying violated the barrier, only the underlying with the worst performance (percentage performance from the starting value to the final value) shall be delivered to the securities account. The fixed interest rate is paid out in any case, regardless of the performance of the underlying shares.
Further information as well as the Key Information Document please find on the product page.
Reverse Convertible Bonds - explained in an easy way
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The Certificates Team of Raiffeisen Centrobank