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The certificate Europe Inflation Bonus&Safety 28 is based on the best-known equity benchmark in the euro zone, the EURO STOXX 50® index.
Investors of the investment product without capital protection receive the euro area inflation rate in the first three years of the term. From the fourth year onwards, the fixed interest rate of 9.25% p.a. is paid out annually. The initial distance to the barrier (safety buffer) is 51% and the term is five years.
Payout profile:
In the first three years of the term you will receive the interest rate equal to the annual inflation rate (euro area HICP excluding tobacco). From the fourth year of the term the fixed interest rate is paid in any case, regardless of the underlying performance. In the event of a negative inflation rate (deflation), only the fixed interest rate is paid out.
Interest rate in the amount of the annual inflation (HICP excluding tobacco) from the 1st to the 3rd year + 9.25% fixed annual interest rate from year 4
Redemption of the nominal value at the end of the term depends on the performance of the underlying. Redemption is effected at 100% at maturity (October 2028) provided that the daily closing price of the EURO STOXX 50® index always quotes above the barrier of 49% of its starting value (= respective closing price on October 19, 2023) during the observation period.
If the barrier is violated by the underlying, redemption at the maturity date is effected according to the underlying performance (percentage underlying’s performance from the starting value to the closing price at the final valuation date). Even if the barrier is touched or undercut investors do not participate in price gains above the respective starting value.
The issue price amounts to 100% (nominal value EUR 1,000) within the subscription period. Further information as well as the Key Information Document can be found on the product page.
Details on the EURO STOXX 50® index as well as the current list of index members can be found on the website of the index provider STOXX Ltd.
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