PROTECT REVERSE CONVERTIBLE BONDS – partial 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.
Payout Profile:
At the end of the term the interest amount is paid out at any rate, regardless of the performance of the underlying. Redemption of the nominal value at the end of the term depends on the price of the underlying.
As long as the underlying always quotes above the barrier, the Reverse Convertible Bond is automatically redeemed at 100% of the nominal value at the maturity date. In case, at the final valuation date, the closing price of the underlying share quotes above the strike, the Reverse Convertible Bond will also be redeemed at its nominal value.
If the barrier was touched or undercut AND the share‘s closing price at the final valuation date quotes below the strike, the predefined amount of shares per nominal value is delivered.
Each of the four Reverse Convertible Bonds is based on one of the following companies:
- Daimler AG
- Deutsche Post AG
- Raiffeisen Bank International AG
- voestalpine AG
Key Facts:
- Subscription period: 07.-28.10.2014
- Term: 2 years (Maturity date: 02.11.2016)
- 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
