BNP Paribas announces the issuance of a new set of certificates Cash Collect airbags on equity baskets with a three-year term, with monthly premiums between 0.70% (8.40% pa) and 1.45% (17.40% pa) of the nominal value; the payment of the premium is fixed for the first 12 months of life of the certificates, ie not conditioned by the performance of the underlying shares.
Conditional monthly premiums and early repayment
Starting from the thirteenth month, the monthly premiums, always between 0.70% (8.40% pa) and 1.45% (17.40% pa), are paid with memorial effect, provided that the shares underlying all quote at a value equal to or greater than the Airbag Level (which varies from 50% to 60% of the initial value). If, on the other hand, even just one of the underlying shares is quoted at a value lower than the Airbag Level, the Certificate continues without paying the premium. However, any unpaid premiums are not permanently lostthanks to the memory effect.
Starting from the sixth month of life, the possibility of early maturity also begins on each monthly valuation date. If all the shares that make up the basket trade at a value equal to or higher than the initial value, the Certificates may expire prematurely: the investor thus receives, in addition to the monthly premium, the nominal value (100 euros) and any previously unpaid premiums.
Maturity Scenarios and Airbag Effect
At maturity (April 13, 2026), if the Certificate has not matured early, they are two possible scenarios:
- if the quotation of all the shares making up the basket is equal to or higher than the Airbag Level, the Certificate repays the Nominal Value plus the monthly premium and any previously unpaid premiums;
- if the price of at least one of the shares making up the basket is lower than the Airbag Level, the Airbag is activated (as further described below) and the Certificate pays an amount commensurate with the value of the basket with the worst performance at maturity multiplied by the Airbag Factor ( resulting in a partial or total loss of the invested capital).
What is the airbag? The Airbag Effect makes it possible to contain the negative effects of any declines in the shares making up the basket beyond the Airbag Level and to limit, in this scenario, the losses compared to an investment in a classic Cash Collect certificate on shares. In detail, if, at maturity, the listing of the share with the worst performance in the basket is lower than the Airbag Level, the Airbag Effect is activated and the investor receives an amount commensurate with the value of this share at maturity multiplied by the airbag factor. The Airbag factor is equal to 1.6667 when the Airbag Level is equal to 60% of the initial value of the underlying shares; or equal to 2 when the Airbag Level is equal to 50% of the initial value of the underlying shares. For example, assuming an Airbag Factor equal to 1.6667 and a value of the share with the worst performance of the basket equal to 40%, the redemption at maturity of the Certificate will be equal to 66.67 euros or 40 multiplied by 1.6667.
The list of all new Certificates
More information on the BNP Paribas Cash Collect range is available at https://investimenti.bnpparibas.it/certificates-investimento/cash-collect-certificate. Furthermore, on the dedicated website investments.bnpparibas.it it is always possible to consult quotations, graphs in real time and all the documentation relating to the Certificates.