The Raiffeisen Centrobank’s capital protection certificate “Sustainability Bond 90% IV” was voted 3rd by the audience at the CertificatesAwards 2020/2021!
At the CertificatesAwards 2020/2021, the leading award for the best providers and products on the German certificate market, which was presented by the specialist magazine “Der Zertifikatberater” and the news channel n-tv with the support of the Stuttgart and Frankfurt stock exchanges on the evening of 26 November 2020, Raiffeisen Centrobank’s “Sustainability Bond 90% IV” achieved 3rd place in the public voting for the “Certificate of the Year”!
Due to the Corona, this event did not take place traditionally as a gala in Berlin, but as a digital live event, which meant that the many thousands of participants who took part in the online vote could also be there live for the first time. More than 13,000 investors voted for the “Certificate of the Year”, RCB’s “Sustainability Bond 90% IV” on the podium.
A total of 12 product concepts were nominated in this category that are particularly useful, innovative, investor-friendly or successful, and given the huge range of certificates, one nomination can already be seen as an award. The RCB team is all the more pleased with 3rd place.
In addition to the extremely simple and promising payout profile, the decisive factor was certainly the base value; the certificate refers to the STOXX® Global ESG Leaders Select 50 Index, which contains companies that are among the best in the world in the areas of environment, social affairs and corporate governance.
As the name suggests it is Sustainability Bond 90% IV not the first certificate with a “Bond” payout profile. Raiffeisen Centrobank has been working with this payoff for many years, which is due to its simplicity and Returns already impresses in sideways-moving markets: If the base value is quoted at / above a certain level at the end of the term, usually its starting value, then the repayment is well above 100%. For the Sustainability Bond 90%, this means that the certificate will be redeemed at 132% if the STOXX® Global ESG Leaders Select 50 Index at the end of the term (in July 2027) is at / above its price on July 22, 2020 (first valuation date). The base value is currently a few points above it, although this is not relevant as only the price on the last valuation day decides the amount of the repayment. Since it is a certificate with 90% capital protection, there is another threshold: If the underlying is listed below its starting value at the end of the term, but has lost less than 10%, then the repayment is still 100%. Only if the base value has lost more than 10% will the repayment be made at 90%.
Precisely because many investors have the feeling that stock markets have already done well, “bond” payout profiles are very popular, after all, a sideways market is enough to generate attractive returns.
Mag. Philipp Arnold, Head of Structured Products Sales: “We are extremely pleased about this further award, which underlines once again how perfectly the topic of” sustainability “fits our security-oriented and attractive payout profiles! We have been issuing certificates on sustainable underlying assets since 2015, and in the past 3 years alone the volume assessed in this way has increased almost tenfold! ”
About Raiffeisen Centrobank AG
Raiffeisen Centrobank AG (RCB) is the competence center for certificates and shares in Austria with a strong regional focus on Central and Eastern Europe. As a full-service provider of certificates, the bank offers around 6,000 products for every market situation and every investment horizon. Raiffeisen Centrobank AG is a subsidiary of Raiffeisen Bank International AG.