1-Year Autocallable with 90% Capital Protection on Copper & Aluminum – 51% p.a. Coupon upon Autocall, in USD

Copper hit an all-time high on the London Metal Exchange this week at $14,617 per ton – its fourth consecutive gain – driven by tight supply and expectations that the US administration may expand tariffs on refined copper imports. The price is now roughly 17% higher than at the start of the year, underpinned by a structural mismatch between constrained mine supply and growing demand from data centers, renewable energy, and power grids.

Aluminum is following its own distinct price path: prices are forecast to reach around $3,800 per ton in the third quarter, driven by supply disruptions from the Middle East conflict – two major aluminum smelting facilities in the Gulf region were affected by the escalation – as well as possible shifts in Chinese export policy. In addition, the US administration has been promoting the build-out of domestic smelting capacity since July, including for defense-related applications.

Both metals are core building blocks of power infrastructure – copper primarily in cables, motors, and electric vehicles, aluminum mainly in high-voltage overhead transmission lines – yet they follow clearly different near-term price drivers: copper reacts to US tariff policy and data-center demand, aluminum to Middle East-driven supply disruptions and Chinese export decisions.

With an Autocallable Capital Return Note (1-year term) on the worst-of Copper and Aluminum, investors can benefit from a coupon of 51% p.a. in USD. Unlike classic autocallables, there is only a single observation date after 6 months: if both underlyings are then at or above 105% of their initial level, the note terminates early with 100% capital repayment plus half the annual coupon of 25.5%. If this threshold is missed, the note continues to run until maturity after 12 months – then without a coupon, but with built-in capital protection: repayment reflects the performance of the weaker underlying, but never less than 90% of the notional.

Conclusion: A structure that combines two industrial metals with structurally different drivers – yet equally central to electrification – with a high coupon and a loss potential capped at a maximum of 10%.