UniCredit Bank has launched two new notes onto the Czech market after a six-month break. Both are linked to shares in Prague Stock Exchange's PX Index.
UniCredit's inaugural products of 2010, the 3.5-year Structured Bond Czech Conservative 2013 and 1.5-year Structured Bond Czech Dynamic 2011, have 50% and 100% participation, respectively, in the rise of the index.
'Conservative' pays three annual coupons of 0.5% and index participation capped at a return of 30%, making overall capital return a maximum 116.5%. 'Dynamic' offers uncapped exposure to index growth, but is issued at 111.11% of nominal, so that the minimum capital return of the product is 90%.
UniCredit Bank International Markets Manager Stepan Nyvlt is selling the product as a post-crisis play. "Due to the openness of the domestic economy, it should greatly benefit from further recovery of the global economy after the recession," which should gradually feed into share prices, he said.
Since the end of 2005, Czech investors have been offered only 11 products linked to the PX index. The first, HVB Structured Bond Czech Shares, came from UniCredit's predecessor, then known as HVB Bank.
Both bonds can be sold before their maturity date at the relevant market price, with no redemption fee.
The new products are available until the end of May.
These products are available now in Recent Additions (Czech Republic).