Yield Crescendo Tempo Autocall Step Down on Intesa Sanpaolo
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Key Information Document This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. YIELD CRESCENDO TEMPO AUTOCALL STEP DOWN ON INTESA SANPAOLO, UNICREDIT AND STMICROELECTRONICS - EUR - JANUARY 2022 ISIN: FREXA0014771 Issuer: Exane Finance | Guarantor: Exane Derivatives | Supervisor: Autorité des Marchés Financiers and Autorité de Contrôle Prudentiel et de Résolution | Telephone Number: (+33) 1 44 95 70 00 | Website: www.exane.com KID production date: 4/07/2019 You are about to purchase a product that is not simple and may be difficult to understand. WHAT IS THIS PRODUCT? TYPE: Certificate indexed to one or more Underlyings. OBJECTIVES The Certificate Yield Crescendo Tempo Autocall Step Down on Intesa Sanpaolo, Unicredit and STMicroelectronics - EUR - January 2022 issued by Exane Finance carries a risk of capital loss during its life and at maturity. Coupon mechanism On each Interest Payment Date, if the official closing price of each Underlying on the Coupon Valuation Date is higher than or equal to 50% of its Initial Price, the Holder will receive a coupon of EUR 10 and in addition to the current coupon, all previously missed coupons. Otherwise, no coupon is paid for the period. Automatic Early settlement On each Automatic Early Settlement Date, if the official closing price of each Underlying on the Automatic Early Valuation Date is higher than or equal to the decreasing redemption barrier (as a percentage of its Initial Price), the product is early redeemed and the Holder will receive an amount corresponding to EUR 1,000. Otherwise no early settlement occurs. Settlement at maturity On the Maturity Date (unless previously redeemed or purchased and cancelled), if the Final Price of each Underlying is higher than or equal to 50% of its Initial Price, the Holder will receive an amount corresponding to EUR 1,000. Otherwise, the Holder will receive an amount corresponding to the worst Underlying Performance, multiplied by EUR 1,000, which corresponds to an amount inferior to 100% of the Issue Price. The Holder will incur a capital loss. Where ‒ The Initial Price is the price of the Underlying at the close on the Initial Valuation Date. ‒ The Final Price is the price of the Underlying at the close on the Final Valuation Date. ‒ Underlying Performance: for an Underlying, the Final Price of such Underlying divided by its Initial Price. PRODUCT DATA Initial Valuation Date 3 January 2019 Issue Price EUR 1,000 Issue Date 3 January 2019 Product Currency EUR Final Valuation Date 3 January 2022 Maturity Date 17 January 2022 Type of the underlyings Basket of shares Underlyings STMICROELECTRONICS NV (NL0000226223), UNICREDIT SPA (IT0005239360), INTESA SANPAOLO (IT0000072618) Coupon Valuation Dates 4 February 2019 and monthly thereafter (in accordance with the business day convention) Interest Payment Dates 18 February 2019 and monthly thereafter (in accordance with the business day convention) Automatic Early Valuation Dates 3 July 2019 and monthly thereafter (in accordance with the business day convention) Automatic Early Settlement Dates 17 July 2019 and monthly thereafter (in accordance with the business day convention) INTENDED RETAIL INVESTOR This investment is intended for retails investors who: ■ have some knowledge of the financial instrument in question and/or moderate experience of financial markets ■ are able to bear a total loss of capital (up to the total notional amount) ■ have a medium risk tolerance (balanced risk profile) ■ have a short-term investment horizon of more than 1 year and less than 3 years ■ have an objective to invest in an income-paying product WHAT ARE THE RISKS AND WHAT COULD I GET IN RETURN? RISK INDICATOR Exane Derivatives | Key Information Document 4 July 2019 1 The risk indicator assumes you keep the product until 17 January 2022. The actual risk can vary significantly if you cash in at an early stage and you may get back less. You may not be able to cash in early. You may have to pay significant extra costs to cash in early. You may not be able to sell your product easily or you may have to sell at a price that significantly impacts on how much you get back. ■ The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you. ■ We have classified this product as 3 out of 7, which is a medium-low risk class. ■ This rates the potential losses from future performance at a medium-low level, and poor market conditions are unlikely to impact our capacity to pay you. ■ Be aware of currency risk. You may support a currency risk if you receive the payment in a different currency than your domestic one or if the certificate itself carries a currency risk (i.e. if there is a distinction between the product currency and at least one underlying currency and when the certificate is not currency hedged). This risk is not considered in the indicator shown above. ■ This product does not include any protection from future market performance so you could lose some or all of your investment. ■ If we are not able to pay you what is owed, you could lose your entire investment. ■ For detailed information about all risks please refer to the risk sections of the Base Prospectus as specified in the section “Other relevant information” below. PERFORMANCE SCENARIOS Investment [EUR 10,000] Scenarios 1 year 2.5 years What might get back after costs EUR 9,852.46 EUR 9,901.47 Stress scenario Average return each year -1.46% -0.39% What might get back after costs EUR 9,852.46 EUR 9,901.47 Unfavourable scenario Average return each year -1.46% -0.39% What might get back after costs EUR 9,852.46 EUR 9,901.47 Moderate scenario Average return each year -1.46% -0.39% What might get back after costs EUR 9,852.46 EUR 9,901.47 Favourable scenario Average return each year -1.46% -0.39% ■ This table shows the money you could get back over the next 2.5 years, under different scenarios, assuming that you invest EUR 10,000. ■ The scenarios shown illustrate how your investment could perform. You can compare them with the scenarios of other products. ■ The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies, and are not an exact indicator. What you get will vary depending on how the market performs and how long you keep the product. ■ The stress scenario shows what you might get back in extreme circumstances and it does not take into account the situation where we are not able to pay you. ■ The figures shown include all the costs of the product itself, and include the costs of your advisor or distributor. The figures do not take into account your personal tax situation, which may also affect how much you get back. WHAT HAPPENS IF THE ISSUER IS UNABLE TO PAY OUT? If Exane Finance is in default, the holders may enforce the unconditional and irrevocable guarantee given by Exane Derivatives acting as Guarantor. If Exane Derivatives is also in default, the holders may lose some or all of the amounts invested. WHAT ARE THE COSTS? The Reduction in Yield (RIY) shows what impact the total costs you pay will have on the investment return you might get. The total costs take into account one-off, ongoing and incidental costs. The amounts shown here are the cumulative costs of the product itself, for three different holding periods. They include potential early exit penalties. The figures assume you invest EUR 10,000. The figures are estimates and may change in the future. COST OVER TIME The person selling you or advising you about this product may charge you other costs. If so, this person will provide you with information about these costs, and show you the impact that all costs will have on your investment over time. Exane Derivatives | Key Information Document 4 July 2019 2 Investment [EUR 10,000] Scenarios If you cash in after 1 year If you cash in after 2.5 years Total costs EUR 130 EUR 50 Impact on return (RIY) per year 1.3% 0.2% COMPOSITION OF COSTS The table below shows: ‒ The impact each year of the different types of costs on the investment return you might get at the end of the recommended holding period; ‒ The meaning of the different cost categories. This table shows the impact on return per year Entry costs 0.2% The impact of the costs already included in the price. One-off costs The impact of the costs taken of exiting your investment Exit costs 0% when it matures. The impact of the costs of us buying and selling underlying Portfolio transaction costs 0% investments for the product. Ongoing costs The impact of the costs that we take each year for managing Other ongoing costs 0% your investment. The impact of the performance fees. We take these from you Performance fees 0% investment if the product outperforms its benchmark. Incidental costs Carried interests 0% The impact of carried interests. HOW LONG SHOULD I HOLD IT AND CAN I TAKE MONEY OUT EARLY? The recommended holding period for the product is until 17 January 2022, which corresponds to the product’s maturity, or until an automatic early redemption event occurs.