Asia

Strip of digits note on Asian stocks

Product Rationale

The underlying of the product is composed of four Chinese stocks from different sectors.

Product Description
  • Issuer: Commerzbank AG
  • Issuer credit rating: A1 stable (Moody's) / A– (S&P) / A– (Fitch), 'preferred' senior unsecured debt
  • Maturity: 36 months
  • Currency: qUSD
  • Underlyings:

Underlying name

Bloomberg ticker

BYD Co. Ltd

1211 HK Equity

Petrochina Co. Ltd

857 HK Equity

HSBC Holdings plc

5 HK Equity

Alibaba Group Holding Ltd

BABA UN Equity

  • Coupon: 10%
  • Coupon barrier: 100%
  • At maturity:
    The security holder will receive: 100% + N x Coupon

    Where:

    N = N + 1 if Wof(f)/Wof(i) is greater than coupon barrier, observed every 12 months

  • Worst performing underlying:
    The underlying, observed on the specific date, that has the lowest performance relative to its initial fixing level.

    Where:

    • Wof(f) is the final level of the worst performing underlying
    • Wof(i) is the initial level of the worst performing underlying
Key Benefits
  • This product offers the possibility to the security holder to get a 30% coupon

  • Investor’s capital is fully protected
Key Risks
  • In a strongly trending equity market, the investor potentially receives a lower return from the note than compared to investing in the underlying stock itself

  • 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.