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The Erste Group Express 5 certificate combines the opportunity to generate an attractive yield with the possibility for an early redemption. The share of Erste Group Bank share serves as underlying for the investment product without capital protection. The Express Certificate offers an attractive profit opportunity for those investors who expect the Volkswagen preferred share to quote at or above the annually declining termination level within the forthcoming five years.
Term:
The certificate has a minimum term of 1 year and a maximum term of 5 years. If the closing price of the Erste Group Bank share quotes at or above the terminatin level at one of the annual valuation dates, (early) redemption is effected according to the predefined redemption price.
The longer the term is, the higher is the termination price and the lower is the termination level. If the share quotes below its termination level at the respective annual valuation date, the term extends by another year, the potential termination price rises by 10% and the annual terminal level declines by 10 percentage points.
| 1st year Termination level: 100% of starting value | Termination price: 108.75% of the nominal value | |
| 2nd year Termination level: 90% of starting value | Termination price: 117.50% of the nominal value | |
| 3rd year Termination level: 80% of starting value | Termination price: 126.25% of the nominal value | |
| 4th year Termination level: 70% of starting value | Termination price: 135.00% of the nominal value | |
| 5th year Termination level: 60% of starting value | Termination price: 143.75% of the nominal value |
Safety mechanism:
If the certificate is not redeemed in the first four years and provided that the underlying quotes below the termination level at the fifth and final valuation date, an additional safety mechanism applies: in case the closing price of the Erste Group Bank share quotes above the barrier of 60% at the final valuation date, redemption is effected at 100% of the nominal value. This means investors do not generate profit and the nominal value of EUR 1,000 is redeemed.
If the barrier is touched or undercut at the final valuation date physical delivery applies. Then the investor gets the Erste Group Bank shares in the amount predefined at the issue date (nominal value/strike). The difference to the integral number is paid out. In this case, the lower share price of the delivered shares may result in the loss of a major part of the capital.
Further information as well as the Key Information Document please find on the product page.
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