Market expectations

• Sideways moving or slightly rising underlying
• Falling volatility
• The underlying will not reach or go below a certain level (knock-in level/barrier) during the term

Advantages

• If prices are rising slightly to moderately, repayment and a coupon payment are made early.
• Due to the risk buffer, repayment of the nominal amount is also guaranteed if the performance of the underlying is slightly negative (provided the price of the underlying never touches or falls below the knock-in level).

Repayment terms

• The price of the underlying on the relevant observation date is used to determine the early repayment.
• Amount of the early repayment:
  • If the price of the underlying on observation date 1 is the same or higher than the strike price, the Conditional Coupon Barrier Reverse Convertibles is paid out early at the nominal amount plus the single coupon. Otherwise, the certificate continues to run.
  • If the price of the underlying on observation date 2 is the same or higher than the strike price and no previous repayment has been made, the Conditional Coupon Barrier Reverse Convertibles is paid out early at the nominal amount plus the double coupon (coupon memory effect). Otherwise, the certificate continues to run.
• Amount of the ordinary repayment:
  • If the price of the underlying on final fixing is the same or higher than the exercise price, the Conditional Coupon Barrier Reverse Convertibles is paid out at the nominal amount plus the triple coupon (coupon memory effect).
  • If the price of the underlying on final fixing is lower than the strike price but higher than the knock-in level, the nominal amount is repaid.
  • If the price of the underlying on final fixing is the same or lower than the knock-in level, repayment is made corresponding to the nominal amount multiplied by the negative performance of the underlying between the initial fixing and final fixing.

Early redemption

• If the closing price of all Underlyings on the Observation Date trade at or above the Call Level, the product will be redeemed early at 100.00% of the Denomination.
• If one or more Underlyings trades below the Call Level on the Observation Date, the product continues.

Redemption at maturity

• redemption will be 100% of the Denomination if the Final Fixing Levels of all Underlyings are at or higher than the Initial Fixing Level or
• the investor will receive a physical delivery of a number of Underlyings as defined in Ratio per Denomination of the worst performing Underlying between Initial Fixing Date and Final Fixing Date(Fractions will be paid in cash,no cumulation).

Pay-off diagram upon expiry