First innovative security with a crypto asset as underlying and capital protection on the Austrian market
- UniCredit Bank Austria is the first Austrian bank to launch a structured note with a crypto asset as the underlying
- The new Garant certificate on the underlying „iShares Bitcoin Trust ETF (IBIT)” combines the opportunities of the crypto world with 100 per cent capital protection in USD at maturity
- The certificate has a term of six years and can generally be sold on and off the stock exchange
With the “USD Garant Cap Certificate 06/2032 of UniCredit S.p.A. on the iShares Bitcoin Trust ETF”, UniCredit Bank Austria is the first Austrian bank to launch a structured note with a crypto asset as the underlying. The Garant Certificate participates 100 per cent up to the maximum amount (cap) of 175 per cent in rising prices of the underlying “iShares Bitcoin Trust ETF” and at the same time provides 100 per cent capital security at the end of the 6-year term through UniCredit S.p.A.
Marion Morales Albiñana-Rosner, Head of Wealth Management & Private Banking at UniCredit Bank Austria, emphasises: “We are pooling the expertise of the entire UniCredit Group and are therefore the first bank to offer this innovative investment solution on the Austrian market. With the new guarantee certificate, we are offering investors an interesting opportunity to invest in crypto assets and participate in price gains, while at the same time having 100 per cent capital security in US dollars at maturity.”
iShares Bitcoin Trust ETF
Bitcoin is the largest digital currency by market capitalisation and the first to achieve broad and global acceptance. Crypto assets are not issued by a central authority such as a central bank, but are managed in a decentralised manner by a network of computers using blockchain technology. Bitcoin can be seen as a global, decentralised, non-government issued and scarce monetary alternative with a fixed supply of 21 million units.
The “iShares Bitcoin Trust ETF” (IBIT, US46438F1012) invests solely in physically backed bitcoins. “iShares Bitcoin Trust ETF” is a passive vehicle that seeks to track the performance of Bitcoin as measured by the CME CF Bitcoin Reference Rate - New York Variant (BRRNY), net of fees and expenses, and does not seek to provide any additional return above that benchmark. The “iShares Bitcoin Trust ETF” was launched under US law and its shares are traded in US dollars on the US stock exchange Nasdaq.
The closing price (reference price) of the “iShares Bitcoin Trust ETF” (underlying) is determined on the initial observation date. The strike price (100 per cent of the reference price) is calculated from this. At the end of the term, the price of the underlying is analysed again. The performance of the underlying is then calculated from the reference prices on the initial and last observation date. To do this, the reference price of the underlying on the last observation date is divided by the reference price on the initial observation date. One is subtracted from the result and the result is multiplied by 100. This gives the percentage performance of the underlying.
If the reference price of the underlying is at or above the strike price on the last observation date, each certificate is redeemed on the redemption date at the nominal amount of USD 1,000 plus the positive percentage performance multiplied by the nominal amount up to a limit of USD 1,750 (before deduction of withholding tax of 27.5 per cent) per certificate. If the reference price of the underlying asset is below the strike price on the last observation date, the capital protection takes effect and repayment is made at the nominal amount of USD 1,000 per certificate.
The capital is invested for a total of six years, whereby the Garant certificate can be sold on and off the stock exchange under normal market conditions.
Enquiries:
UniCredit Bank Austria Media Relations
Matthias Raftl, Phone: +43 (0) 5 05 05-52809;
e-mail: matthias.raftl@unicreditgroup.at