Bonus certificate on Asian ESG stocks

Product Rationale

Following the trend of the market, this product has a bearish exposure to ESG (environmental, social, governance) and offers the client a bonus coupon, if the worst performing underlying is lower than the knock-in barrier.

Product Description
  • Issuer: Commerzbank AG
  • Issuer credit rating: A1 stable (Moody’s) / A– (S&P) / A– (Fitch), 'preferred' senior unsecured debt
  • Maturity: 18 months
  • Currency: USD
  • Underlyings:

Underlying name

Bloomberg ticker

Siemens Ag

SIE GY Equity


SAN FP Equity

Volkswagen AG

VOW3 GY Equity

  • Knock-in observation period:
    Scheuled trading days starting from and excluding the trading date until but including maturity date (observed daily)
  • Knock-in event:
    Occurs if the worst performing underlying closes below the knock-in barrier on any date during the knock-in observation period
  • Knock-in barrier: 60%
  • Bonus: 17%
  • At maturity:
    • If the knock-in event never happened, the security holder will receive:  100% + Max[Bonus, Max[0, AvB(f)]]

    • Otherwise, Wof(f) / Wof(i)

    • Wof(f) is the final level of the worst performing underlying
    • Wof(i) is the initial level of the worst performing underlying
    • AvB(f) is the final level of the average performance of the equally weighted basket

Key Benefits
  • Uncapped upside exposure on a basket of stocks
  • Low knock-in barrier level (60%, daily observation)
Key Risks
  • No capital guarantee
  • The investor is subject to the issuer risk of Commerzbank
  • Please also refer to Additional Risk Disclosures below

Additional Risk Disclosures
Before investing in this product, investors should carefully consider its appropriateness and suitability, and the following additional risks: 1. Issuer Risk: Any failure by the issuer to perform its contractual obligations, when due, may result in the loss of all or part of the invested capital. 2. Counterparty Risk: Any failure by Commerzbank AG to perform its contractual obligations, when due, may result in the loss of all or part of the invested capital. 3. Market Risk: Various market factors may affect the value of the investment or the underlying assets, including but not limited to the impact of volatility, interest rates, dividends (if any), foreign exchange. 4. Liquidity/Secondary Market Risk: Under normal market conditions Commerzbank will endeavour to provide a secondary market price. However, Commerzbank has no obligation to make a secondary market in the instruments concerned. Accordingly, under some circumstances, the secondary market for the investment may be limited and subject to wide bid/offer spreads. 5. Reinvestment Risk: The risk that the investment redeems prior to maturity at a time when reinvestment opportunities are not favourable for the investor. 6. Redemption Risk: The risk that the investor may receive substantially less than the amount invested, if they liquidate the investment prior to maturity. 7. Tax Risk: There may be tax implications based on where the investor resides. Please consult a tax professional before investing. 8. Legal Risk: There may be legal restrictions depending on where the investor is domiciled. It is advised to seek legal guidance prior to investing. When specified, the terms ‘guaranteed’ and ‘protected’ are subject to the creditworthiness and solvency of Commerzbank and although financially strong there is the possibility that returns may not be met in the unlikely event of a Commerzbank failure. For additional information on the product features and key risks, please contact your sales advisor or refer to the contacts page.