What is an Investment Certificate?
Investment Certificates are derivative financial instruments that replicate the performance of one or more underlyings.
This investment certificate, issued by Barclays, replicates the performance of Mercedes-Benz Group, Bayer AG, Eni Spa and Stellantis NV.
This research outlines and describes the characteristics of this financial product.
Key features
| Issue price | EUR 83 |
| Issue date | 31 January 2024 |
| Maturity | 2 February 2028 |
| Coupon yield | 5% |
| Capital barrier | 65% |
| Trigger coupon | 75% |
| Interest valuation dates | Trigger coupon | Autocall barrier |
| 26 April 2024 | 75% | – |
| 26 July 2024 | 75% | – |
| 28 October 2024 | 75% | – |
| 27 January 2025 | 75% | 100% |
| 28 April 2025 | 75% | 99% |
| 28 July 2025 | 75% | 98% |
| 27 October 2025 | 75% | 97% |
| 26 January 2026 | 75% | 96% |
| 27 April 2026 | 75% | 95% |
| 27 July 2026 | 75% | 94% |
| 26 October 2026 | 75% | 93% |
| 26 January 2027 | 75% | 92% |
| 26 April 2027 | 75% | 91% |
| 26 July 2027 | 75% | 90% |
| 26 October 2027 | 75% | 89% |
| 26 January 2028 | 75% | 75% |
| Underlyings |
| Mercedes-Benz Group |
| Bayer AG |
| Eni Spa |
| Stellantis NV |
How does it work?
Provided none of an automatic settlement (autocall) event, a nominal call event, an optional early settlement event or any other settlement or purchase or cancellation of the securities has occurred, a cash amount per calculation Amount in the Settlement Currency determined by the Determination Agent in accordance with the following:
if:
- FP ≥ Capital barrier percentage,
then:
- 100% × Calculation amount
Otherwise:
- (FP/SPP) x Calculation amount
- “FP” = Final Performance (in respect of the worst performing underlying asset as of the final valuation date, the final valuation price divided by the initial price)
- “SPP” = Strike Price Percentage (100%)
Advantages
- Yield Linearity: This investment certificate’s yield follows linearly the underlying’s worst-of performance.
- Memory effect: In case the underlying’s worst-of performance goes below coupon barrier’s level, the coupon would be evaluated during the next evaluation date.
- Step-down autocall: The autocall barrier percentage will drop by 1% every three months starting from 27 january 2025, making it easier to trigger it.
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Mercedes-Benz Group
| Strike Price | EUR 61,26 |
| Barrier level | EUR 39,819 |
| Coupon level | EUR 45,945 |
Tweets from Mercedes-Benz
Bayer AG
| Strike Price | EUR 32,315 |
| Barrier level | EUR 21,0047 |
| Coupon level | EUR 24,2363 |
Tweets from Bayer
Eni Spa
| Strike Price | EUR 14,756 |
| Barrier level | EUR 9,5914 |
| Coupon level | EUR 11,067 |
Tweets from Eni
Stellantis NV
| Strike Price | EUR 19,524 |
| Barrier level | EUR 12,6906 |
| Coupon level | EUR 14,643 |
Tweets from Stellantis
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