In addition to the disproportionately high earnings opportunities and the mostly stately security buffers, the main incentive for the purchase of express certificates is the possibility of early availability of the capital investment after a relatively short investment period (usually one year).
The prerequisite for the early repayment of the capital investment of most Express Certificates is that the price of the underlying is quoted at or above the starting value after one of the observation periods. The new HVB-Express Plus certificate offers the chance of early availability of the capital investment even if the price of the underlying falls. The Express Plus certificate currently offered for subscription is based on the EuroStoxx50 index (ISIN: EU0009658145).
3.7 percent bonus chance per observation period
The closing level of the EuroStoxx50 index, fixed on July 3rd, 20, will be fixed as the base price for the Express Plus certificate. If the EuroStoxx50 index is listed on the first observation day (31.8.21) at or above the payment level of 100 percent of the base price, the certificate will be repaid with 100 euros and a bonus payment of 3.70 percent. On the following observation days, which are attached every year, the early repayment including bonus payment will also take place if the index level is weaker. If the EuroStoxx50 is listed on August 31, 2002 above the repayment level, which has now been reduced to 95 percent of the base price, the certificate will be repaid at EUR 1,074 per nominal amount of EUR 1,000. The procedure of the repayment thresholds, which decrease by five percent annually and the bonus payments, which increase by 3.70 percent annually, will also be applied in the remaining term years.
If the index is listed on the last observation day (31.8.26) at or above the barrier at 60 percent of the base price, the certificate with its maximum amount of EUR 1,222 will be repaid. If the index is down by more than 40 percent on this day, the certificate will be repaid with the negative percentage index development compared to the base price.
The HVB-Express Plus certificate on the EuroStoxx50 index, ISIN: DE000HVB4GA2, maximum term up to 7.9.26, can still be subscribed to 1,010 euros until 3.7.20.
CertificateReport conclusion: Over the next 6 years and 2 months, with an up to 40 percent fall in the price of the EuroStoxx50 index, this express certificate will give you the chance of a gross return of 3.70 percent for each interest period, with the first period over 14 Months.
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