db Express WIG20 II is the second issue of express certificates (certificates with the issuer’s early redemption option) issued by Deutsche Bank and introduced to trading on the WSE on 13 June. WIG20 is the underlying instrument of the certificates. The structure of the certificates is the same as that of the instruments previously introduced to the WSE but they have different maturity and different barrier determination dates.
The main instrument parameters are as follows:- value at par – PLN 100;
- issue price – 100% of the value at par;
- maturity – 9 May 2011;
- listed on the parallel market in the continuous quotations system;
- listed in PLN.
Structure of the certificates
The structure of the instruments is the same as that of the certificates DBW20E0411 previously introduced to trading on the WSE.
For the certificates of the second issue of express certificates, the issuer has determined:- Barrier Level equal to 70% of the Initial Reference Level, i.e., the closing level of WIG20 on 7 May 2008. If the Barrier Level is reached or exceeded (if WIG20 falls to or below the barrier level) the guarantee of the client’s capital on maturity does not apply (the same as for DBW20E0411);
- Coupon at 14% (the same as for DBW20E0411)
Barrier Determination Dates
The express certificates give the issuer the option of early redemption. The issuer may decide to redeem the certificates early (“Knock-Out Event”) on Barrier Determination Dates, once per year, on:- 7 May 2009
- 7 May 2010
- 9 May 2011
Early redemption
The terms of redemption of the certificates are as follows:- Early redemption of the certificates is possible in the following cases: Early redemption may take place on Barrier Determination Dates (7 May 2009, 7 May 2010, 9 May 2011) if on any of these dates WIG20 is equal at least to WIG20 on 7 May 2008 (Initial Reference Level).
In this case, the redemption amount is determined as follows: PLN 100 plus a straight-line coupon of 14% in year 1 (redemption in year 1), 2x14% in year 2, and 3x14% in year 3, according to the formula below:
o PLN 100 x (100% + (14% x t)) , where t = 1 to 3,No early redemption
a. If the issuer does not redeem the certificates before maturity and additionally the barrier (at 70% of the initial index level) is never reached (i.e., WIG20 never falls to or below 70% of the initial level), the investor will receive 100% of the value at par on maturity (redemption with guaranteed capital) according to the formula below:
PLN 100 x 100%.
b. If WIG20 reaches or falls below the Barrier Level (70% of the Initial Reference Level, i.e., WIG20 closing level on 7 May 2008) within the lifetime of the certificates and the WIG20 level on maturity is below the WIG20 level on the issue date, the settlement on maturity will be determined according to the formula below (redemption without guaranteed capital):
PLN 100 x Result, where Result means: “final WIG20/initial WIG20”
More information about the product and the issuer at:http://www.pl.x-markets.db.com/PL/showpage.asp?pageid=244&inrnr=245
