UniCredit issued on Borsa Italiana the new 100% Protected Cash Collect Certificates in EUR and USD on European and American shares. These tools are characterized by a unconditional total protection of the Nominal Value at maturity.
How do they work
The new certificates have a duration of approximately 4 and 5 years respectively and allow for the achievement of half-yearly premiums from 1.90% to 3% if, on the Observation Dates, the Reference Price of the Underlying is equal to or higher than the Conditional Additional Amount Level, set for this issue between 85% and 100% of the Initial Value. The Issue Currency and the respective payments are in Euros or US Dollars.
What happens when it expires
On the Final Observation Date, thanks to the full unconditional protection, whatever the value of the Underlying, the Redemption Amount will be equal toMinimum amount of EUR 100 or USD 100 based on the Issue Currency. On the Final Observation Date (19 November 2026 for the Certificates in USD and 16 December 2027 for the Certificates in EUR), whatever the value of the Underlying, the Redemption Amount will be equal to the Minimum Amount of EUR 100 or USD 100 in based on the Issue Currency. Furthermore, in case the Reference Price of the Underlying is equal to or higher than the Conditional Additional Amount Level, the investor will also receive the last gross premium.
Finally, for the Certificates issued in USD, we remind you to pay attention to the exchange rate risk. In this case investors will receive payments in a foreign currency, therefore the final return which will depend on the exchange rate between the two currencies (euro and dollar).