Investment Idea

Express certificate with memory on STOXX® Europe 600 Basic Resources

The global index issuer STOXX AG, headquartered in Zug, is part of Deutsche Börse AG. In the picture its head office, called The Cube, in Eschborn near Frankfurt. PICTURE GERMAN STOCK EXCHANGE

With 5.00% p.a., our new investment idea offers an attractive return in cases where the STOXX® Europe 600 Basic Resources Index trades sideways or trends upwards. The STOXX® Europe 600 Basic Resources is a sub-index of the STOXX® Europe 600 Index and offers access to the European basic materials industry. Our structure offers you the opportunity to benefit from potentially attractive returns and a feature of early repayment in the event of either a recovery or if the predetermined repayment threshold is surpassed.

The STOXX® Europe 600 Basic Resources Index currently consists of the shares of 19 European companies in the commodities sector. The index encompasses companies from diverse sub sectors, such as steel, mining and commodities trading. The weighting is dominated by the three commodity giants Rio Tinto, BHP Billiton and Glencore. Aggregated, they account for more than 50% of the index. The index is therefore particularly suitable for anti-cyclical investors who are looking to diversify their portfolio with commodity stocks.

Price STOXX® Europe 600 Basic Resources Index in Euro 5 years

After a five-year low of EUR 192 at the beginning of 2016, the commodity index peaked in the middle of last year and has since tended sideways.

How the Express Certificate with Memory and Airbag works

The Credit Suisse Express Certificate with Memory on the STOXX® Europe 600 Basic Resources Index in EUR 2019 - 2025 is a bearer bond of Credit Suisse AG with a maturity until 07.04.2025, except for cases when early termination is triggered.

Interest payments

The STOXX® Europe 600 Basic Resources Index will be reviewed on the relevant observation day to determine whether it is at or above the coupon barrier which is equal to 60.00% of the initial fixing. If this is deemed to be the cases then, an interest amount of EUR 50.00 per certificate along with any previous unpaid interest amounts will be disbursed in arrears (memory effect). Otherwise, the interest payment does not apply. In the event of an early redemption any future interest payments pulled off the table.

Early redemption

The STOXX® Europe 600 Basic Resources Index is reviewed on each observation day to determine whether it is at or above the relevant observation level. If this is the case, the certificate is repaid early at par value. Otherwise, the certificate continues to run until the following observation date.

End of term

The final fixation will determine whether the STOXX® Europe 600 Basic Resources Index is quoted at or above the final payout level of 60.00% of the initial fixation. If this is the case, the redemption amount will be paid per certificate. Otherwise, the redemption will be made at par less the negative performance of the STOXX® Europe 600 Basic Resources Index between the Initial Fixing and the Final Fixing.

Reverse Convertible Bond with Express

Underlying STOXX® Europe 600 Basic Resources
Coupon 5,00% p.a.
Maturity 72 Months
Issuer Credit Suisse AG
Coupon barrier 60%
Issue price EUR 1.005,-
Subscription period Until 29th of March 2019, early closing possible
Currency Euro
Expresslevel After 12 Months = 100% / afterwards yearly step down of 5%

Your contact person

Roman Schmid

Co-Head of Client Advisory Switzerland

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