Polbank EFG, part of Raiffeisen Zentralbank Österreich group, is pitching its Special Purpose 8,5% Equity Formula PLN Fund to retail investors. It is the firm's third reverse convertible structure in Poland.
The fund, marketed as Zyskowny Szlak, follows up on its previous series, Inwestycja Podwójny Zysk. The first tranche, marketed in 2008, offered an annual coupon of 10% and sold almost PLN40m (€10m), while the second, which was sold in 2010 with a 9% annual coupon, raised PLN97m (€24m).
The latter, Inwestycja Podwójny Zysk 2, matured last week paying to 2,579 investors their full initial capital alongside two yearly coupons of 9% paid over the course of the investment.
Polbank EFG's personal banking and deposit products manager, Tomasz Sobociński, told SRP that the rollover fund is aiming to raise PLN100m (€25m) in assets.
The one-year Zyskowny Szlak is a reverse-convertible structure linked to a basket of three indices comprising the Eurostoxx50, S&P500 and Wig20. If at maturity all three final index levels are at least 60% above their initial levels, the product offers a capital return of 100% alongside the fixed coupon of 8.5%. Capital is at risk 1:1 with the fall in the worst-performing index over the investment period if any of the final index levels are below the 60% downside protection barrier.
The bank recently closed the subscription period of a structured life policy, Azymut 25, which raised PLN91m (€22m). Azymut 25 is currently the fifth best selling product in Poland.