The USD 1% Index Bond is a Guarantee Certificate in USD with 100% capital protection at the end of the term. The certificate is suitable for security-oriented investors, who expect the economy of the Eurozone and the US to perform stably in the medium to long-term. The certificate is traded in USD (nominal value and yield).
Payout profile:
The certificate provides investors with the opportunity for an annual interest rate of 2.5%. The fixed annual interest rate of 1% is paid out at the respective interest rate payout date during the five-year term regardless of how the indices perform. The annual payout of the additional interest rate of 1.5% depends on the performance of the two underlying indices:
Provided that the index closing price of the EURO STOXX 50® AND the S&P 500® quotes AT/ABOVE the respective barrier of 85% of the starting value at the current annual valuation date, investors obtain the fixed interest rate of 1% plus the additional interest rate of 1.5% (equals USD 25 per USD 1,000 nominal value). Investors have the opportunity to obtain the annual additional interest rate again in the following years of the term.
In case the closing price of one index or both indices quotes below the respective barrier of 85% of the starting value at the current annual valuation date, the additional interest payment does not apply for the respective year and the fixed interest rate of 1% is paid out. However, investors still have the opportunity to obtain the additional interest rate in each of the following years.
At the end of the term the investment is 100% capital protected by Raiffeisen Centrobank, i.e. during the term price fluctuations may occur, but investors obtain at least 100% of the nominal value at the end of the term.
Key Facts:
- ISIN: AT0000A1KV47
- Initial valuation date: May 11, 2016
- Term: 5 years (maturity date: May 13, 2021)
- Public offer in: Austria, Germany, Italy, Hungary, Poland, Czech Republic, Slovakia, Romania, Slovenia, Croatia
- Listing: Frankfurt
Further information is available at the product page: USD 1% Index Bond
For more details kindly see the Product Folder (PDF).
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
This product, the risks and terms and conditions associated with it, are subject to and governed by the 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.
