Investment idea

Express certificate with memory and airbag on Covestro

Covestro presents new materials and solutions for the automotive industry such as holographic rear lights, jointless fronts and polycarbonate glazing at the world's largest trade fair for plastics.

With our latest investment idea, you benefit from an attractive return if the Covestro share price tends to move sideways. In addition, thanks to the airbag, you are protected against falling prices. Covestro is one of the world's leading manufacturers of polymer materials. After an all-time high at the beginning of the year, the share price almost halved in the course of the year and recently consolidated.

With sales of EUR 14 billion, Covestro is one of the world's leading manufacturers of high-tech polymer materials. The company, which emerged from a spin-off from Bayer in 2015, manufactures and markets its products in 30 locations in Europe, Asia and the Americas. Their customers are primarily in the automotive industry, construction-wood processing and furniture industries as well as the electronics sector. In addition, there are areas such as sports and leisure, cosmetics, health and the chemical industry itself. Current analysts recommend 24 out of 25 buy or hold (Analyst Consensus Reuters).

Stock price Covestro in Euro 1 year

After the all-time high at the beginning of the year, Covestro's share price almost halved by October after a breather in the summer and recently consolidated by 60 euros.

How the Express Certificate with Memory and Airbag works

The Express Certificate with Memory and Airbag on Covestro Plc is a registered bond of “Société Générale Effekten Ltd.” with a term until 27th of December 2024, except for early repayment.

Payment of interest

On the respective observation day, a control is made as to whether the Covestro stock is above the interest rate barrier of 65% of the initial fixing. If this is the case, an interest amount of EUR 51,00 (5.10% p.a.) per certificate and any previous unpaid interest is paid retrospectively (memory effect). If this is not the case, the interest payment does not apply. In the event of premature repayment, all future interest payments are cancelled.

Early payback

On the respective observation day, a check is made as to whether the Covestro stock is at or above the corresponding repayment threshold. If this is the case, the certificate is repaid early at its nominal value. Otherwise, the certificate continues to run until the next observation day.

End of term

The final fixation is used to determine whether the Covestro share is quoted above the base price of 65% of the initial fixation. If this is the case, the nominal amount is paid per certificate, otherwise the physical delivery of the Covestro share takes place at the subscription ratio (cash settlement for fractions).

Express certificate with memory and airbag

Underlying Covestro Plc
Coupon 5,10% p.a.
Maturity 6 years
Issuer Société Générale Effekten Ltd
Coupon barrier 65%
Strike barrier 65%
Issue price EUR 1015.-
Subscription period Until 18th of December 2018, early closing possible
Currency Quanto
Expresslevel Year 1 = 90%
Year 2 = 85%
Year 3 = 75%
Year 4 = 65%
Year 5 = 65%