The 10% Home Office Plus Reverse Convertible Bond combines twofixed interest payments of 10% with a partial safety mechanism for the invested capital down to the barrier of 60% (only observed at maturity). The interest amount is paid out annually, regardless of the performance of the three underlying shares (Cisco Systems Inc., Microsoft Corp. und Zoom Video Communications Inc.).
The share basket of the Reverse Convertible Bond consists of three heavyweights of the American technology sector, who provide modern home office solutions:
- Cisco Systems Inc. is a multinational company based in Silicon Valley that focuses on networking hardware, software and telecommunications equipment.
- The international hardware and software manufacturer Microsoft Corp., based in Washington State, is known for its Windows operating system and Office software package.
- The globally active company Zoom Video Communications Inc. is a provider of cloud-based communication software for the effortless exchange of information.
The certificate is redeemed at 100% of the nominal value at the maturity date (March 2023), provided that the daily closing price of each of the three underlying shares quote above the barrier of 60% of each respective strike on the final valuation date (observation only at maturity).
If one of the barriers is touched or undercut by the daily closing price of at least one of the underlying shares and at least one of these shares closes below its strike at the final valuation date, the predefined amount of the worst performing share is delivered (percentage performance from the starting value to the closing price at the final valuation date).
Further information as well as the Key Information Document please find on Product Page.
Reverse Convertible Bonds - explained in an easy way
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The Team Structured Products of Raiffeisen Centrobank
