PROTECT REVERSE CONVERTIBLE BONDS – conditional protection mechanism until the barrier
At the issue date Reverse Convertible Bonds have a predefined term, a fixed interest rate and a predetermined strike. These parameters remain constant during the term. The interest rate comes off considerably above market level which, compared to a direct investment, provides for a risk buffer.
Protect Reverse Convertible Bonds issued by Raiffeisen Centrobank are furnished with an extra barrier which is being set below the strike. This provides for an additional safety mechanism: if the barrier is never touched or undercut during the observation period, the Reverse Convertible Bond is redeemed at its nominal value at the maturity date – even if the underlying quotes below the strike.
Each of the four Reverse Convertible Bonds is based on one of the following German companies:
- Bayer AG
- Daimler AG
- RWE AG
- Siemens AG
Key Facts:
- Initial valuation date: Jun 10, 2014
- Term: 2 years (Maturity date: Jun 15, 2016)
- Public offer in: Austria, Germany, Italy, Hungary, Poland, Czech Republic, Slovakia, Romania, Slovenia, Croatia
- Listing: Frankfurt, Stuttgart, Vienna
Further information is available at the overview page: In Subscription: Reverse Convertible Bonds
For more details kindly see the Product Folder (PDF).
This product, the risks as well as terms and conditions associated with it, are subject to and governed by the Base Prospectus (including all supplements and amendments thereto) approved by the Austrian Financial Market Authority, which has been deposited at Oesterreichische Kontrollbank AG and is published on www.rcb.at/SecuritiesProspectus.
For any additional information you may require do not hesitate to contact us on +43 1 515 20-484.
The Team Structured Products of Raiffeisen Centrobank
