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 Amazon, Zalando and eBay.
This research outlines and describes the characteristics of this financial product.
Key features
| Issue price | EUR 100 |
| Issue date | 30 January 2024 |
| Maturity | 3 February 2025 |
| Coupon yield | 10.80% |
| Capital barrier | 60% |
| Trigger coupon | 60% |
| Interest valuation dates | Trigger coupon | Autocall barrier |
| 26 February 2024 | 60% | – |
| 25 March 2024 | 60% | – |
| 25 April 2024 | 60% | – |
| 28 May 2024 | 60% | – |
| 25 June 2024 | 60% | – |
| 25 July 2024 | 60% | 100% |
| 26 August 2024 | 60% | 98% |
| 25 September 2024 | 60% | 96% |
| 25 October 2024 | 60% | 94% |
| 25 November 2024 | 60% | 92% |
| 27 December 2024 | 60% | 90% |
| 27 January 2025 | 60% | 60% |
| Underlyings |
| Amazon |
| Zalando |
| eBay |
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 2% every month starting from 26 august 2024, making it easier to trigger it.
- Quanto protection: This investment certificate is protected from the exchange rate risk.
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Amazon
| Strike Price | USD 157,75 |
| Barrier level | USD 94,65 |
| Coupon level | USD 94,65 |
Tweets from Amazon
Zalando
| Strike Price | EUR 18,48 |
| Barrier level | EUR 11,088 |
| Coupon level | EUR 11,088 |
Tweets from Zalando
eBay
| Strike Price | USD 42,16 |
| Barrier level | USD 25,296 |
| Coupon level | USD 25,296 |
Tweets from eBay
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