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 Uipath, PayPal, Alphabet cl. A and Zoom Video.
This research outlines and describes the characteristics of this financial product.
Key features
| Issue price | EUR 85 |
| Issue date | 31 January 2024 |
| Maturity | 2 February 2028 |
| Coupon yield | 5% |
| Capital barrier | 60% |
| Trigger coupon | 70% |
| Interest valuation dates | Trigger coupon | Autocall barrier |
| 26 April 2024 | 70% | – |
| 26 July 2024 | 70% | – |
| 28 October 2024 | 70% | – |
| 27 January 2025 | 70% | 100% |
| 28 April 2025 | 70% | 99% |
| 28 July 2025 | 70% | 98% |
| 27 October 2025 | 70% | 97% |
| 26 January 2026 | 70% | 96% |
| 27 April 2026 | 70% | 95% |
| 27 July 2026 | 70% | 94% |
| 26 October 2026 | 70% | 93% |
| 26 January 2027 | 70% | 92% |
| 26 April 2027 | 70% | 91% |
| 26 July 2027 | 70% | 90% |
| 26 October 2027 | 70% | 89% |
| 26 January 2028 | 70% | 70% |
| Underlyings |
| Uipath |
| PayPal |
| Alphabet cl. A |
| Zoom Video |
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.
- Quanto protection: This investment certificate is protected from the exchange rate risk.
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Uipath
| Strike Price | USD 22,74 |
| Barrier level | USD 13,644 |
| Coupon level | USD 15,918 |
Tweets from Uipath
PayPal
| Strike Price | USD 61,78 |
| Barrier level | USD 37,078 |
| Coupon level | USD 43,246 |
Tweets from PayPal
Alphabet cl. A
| Strike Price | USD 152,185 |
| Barrier level | USD 91,311 |
| Coupon level | USD 106,5295 |
Tweets from Google
Zoom Video
| Strike Price | USD 67,74 |
| Barrier level | USD 40,644 |
| Coupon level | USD 47,418 |
Tweets from Zoom Video
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