The Austrian bank has issued its first product in collaboration with Polish investment house Xelion.

Raiffeisen Bank International (RBI) has announced a partnership with Dom Inwestycyjny (DI) Xelion for the distribution of structured products in Poland.

As part of the agreement, RBI issued certificates will be included in the DI Xelion offering.

By issuing tailor-made structured certificates, we primarily focus on addressing the investment needs of our clients - Anna Kujawska, RBI

“By issuing tailor-made structured certificates, we primarily focus on addressing the investment needs of our clients,” said Anna Kujawska (pictured), CEE country manager, structured products sales at RBI.

“Therefore, in collaboration with DI Xelion, we will prioritize understanding their investment requirements while being open to a diverse range of underlying instruments, from Polish listed companies to currency pairs, as well as a variety of payout profiles, including autocall certificates, Twin-win certificates and reverse convertible bonds,” Kujawska told SRP.

The first RBI product marketed by DI Xelion is an express certificate linked to the share of ARM Holdings. It has a tenor of three-years and redeems early if the underlying share closes at or above its initial level on any semi-annual observation date. The return in that case is 100% of capital, plus a coupon of 12.70% per semester elapsed.

At maturity, the potential maximum capital return is 176.20%, providing the share closes at or above 75% of its initial level on 1 December 2027. Otherwise, the investor participates 1:1 in the fall.

RBI has been present in Poland for almost 15-years and introduced its first structured certificates on the Warsaw Stock Exchange in 2010-2011. Since then, it has constantly developed its offering, both on the primary and secondary markets.

Around 2013, the Austrian bank started collaborating with Polish financial institutions, mainly banks and brokerage houses, for the distribution of structured certificates on the primary market.

Current business partners include, among others, PKO Bank Polski and Ipopema Securities. The former has launched 16 structured certificates in partnership with RBI, including six autocalls and five Twin-win certificates, according to the SRP Poland database. Twelve products offered by PKO are capital protection certificates, returning at least 100% of the nominal invested at maturity.

A further 16 products – mostly bonus- and express certificates – were distributed via Ipopema Securities. Of these, 13 were linked to single shares of mainly Polish companies such as PKN Orlen, KGHM Polska Miedz (four products each), PZU (three), LPP and CCC (two each).

Another bank RBI has partnered with is Pekao, with whom it launched a bonus certificate on the share of PKO Bank Polski in 2021.

“We remain committed to expanding our base of partners in Poland and enabling their clients to invest in structured certificates, of which we are the issuer,” said Kujawska.

On the secondary market, RBI has introduced almost 400 structured warrants on the Warsaw Stock Exchange this year alone. The products are linked to nine Polish stocks (Allegro, Bank Pekao, CD Projekt, Dino Polska, KGHM Polska Miedz, Orlen, Pepco Group, PKOBP, PZU) and three indices (WIG20, mWIG40, and DAX).

DI Xelion offers a wide range of investment funds in Poland. When it comes to structured products, it has limited its offering, until now, to capital protection certificates, express plus certificates and cash collect certificates issued on the paper of Unicredit Bank.

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