This new product, which will be available from December 7th, is classified as an investment structured product. It will allow investors to participate in the upward movement of the underlyings (indices and stocks) with an up-front discount to the spot price, in exchange for giving part of the return (the return above the strike price or cap).
Although no minimum redemption is guaranteed, this structure makes this product ideal for investors that have a positive yet conservative mid-term view on the performance of the underlying and at the same time want to protect themselves against market fluctuations.
Issuers usually offer discount certificates on stock indices, shares and on share baskets. Commerzbank is now issuing Discount Certificates on shares (Portugal Telecom, Energias de Portugal, Banco Comercial Português, Banco BPI, Brisa and Nokia) and indices (Dow Jones EuroStoxx 50).
These discount certificates will be listed on EasyNext and available for trading on Euronext Lisbon.
Hélio da Silva Cláudio, from Commerzbank, said: “It is with great pleasure that we announce the introduction of a new investment product to the Portuguese market. Discount Certificates have been hugely successful in Germany and Commerzbank has been awarded the title of number one issuer in this product category by Finanztreff.de.
Discount Certificates improve the risk and return profile of the underlying security in a very flexible and efficient way, being therefore an ideal instrument for investors to better manage their equity portfolios.
Commerzbank will start to issue Discount Certificates on the main Portuguese shares and gradually broaden its product range to offer certificates on all major international underlyings.”
Miguel Geraldes, Head of Markets for Euronext Lisbon, said: “We are pleased to have a new type of structured product on Euronext Lisbon as this will provide investors with a new and useful investment product, with a wide array of possible underlyings, with different risk and return profiles. It confirms the desire of issuers to tap the appetite for structures products in Portugal and confirms the success of the Portuguese structured products market.”