BNP Paribas has announced the launch of the first listed bonus and bonus cap warrants on the Spanish market. Two bonus products are linked to the Telefónica share, one to Iberdrola and the three bonus caps to the Santander, BBVA and Repsol shares, respectively. The products are listed on the Spanish stock exchange. All have a 1.5-year term and a combined protected tracker and digital payoff with capital at risk. The products were launched on 16 June.
Mariam Pérez-Camino, head of Spanish listed products, said the bank had been inspired to issue the new products by their solid performance in other European markets. Spanish investors typically take time to digest new products and thus the bank had raised only €100,000 for the warrants as SRP went to press.
"BNP Paribas was the first to issue turbos in Spain in 2007, so we are used to bringing new products to Spanish investors," said Pérez-Camino. "It is a slow process, but it is worth it. We will need time to introduce these products and to educate intermediaries, brokers and investors."
Pérez-Camino said the products are aimed at more conservative clients who are willing to invest for a longer time period than turbos, with guaranteed liquidity. The products are an alternative to funds and other structured products, she said, and are of interest to clients who want to invest in shares.
Bonus warrants are listed products which enable investors to track a share over a set period, paying a similar price to the cost of the share. Investors are guaranteed a minimum payout (above the initial price) if a certain barrier has not been reached. If the barrier has been reached during the investment term, the product tracks the underlying share with a one-for-one participation. The bonus cap adds a cap to the maximum return and makes a higher payout if all the conditions are met. Spanish investors can buy them via brokers such as Renta 4, Cortal Consors, and so on.
BNP Paribas is a major issuer of listed products internationally. It is one of the main issuers of bonus certificates in France and of bonus caps in Italy.
These products are available in Recent Additions (Spain).