This memory express bond issued by Credit Suisse AG refers to the ADRs of Alibaba Group Holding Ltd. and JD.com Inc. (underlyings). It offers an interest payment which depends on the performance of the underlyings. The bond has a maturity of five years, if there is no early redemption. The redemption at maturity depends on the closing price of the underlyings on the final valuation date.
Interest payments: Interest of 11.50 % on the nominal amount is paid on the annual interest payment date (16.04.), if the closing price of the underlying with the worst performance is at or above the coupon barrier (65.00 % of the strike price) on the valuation date. Otherwise, there is no interest payment. If the interest payment has not been triggered at one or several interest payment dates but has been triggered at a later interest payment date, the interest payments of the earlier periods are paid retrospectively (memory function).
Redemption: The bond will be redeemed on 16/04/2026 if there is no automatic early redemption. There is an early redemption, if the closing price of the underlying with the worst performance is at or above the redemption barrier (100.00 % of the strike price) on one of the valuation dates (13/04/2022, 13/04/2023, 15/04/2024, 14/04/2025). In this case the early redemption amount and the interest amount due at this time are paid.
If there is no early redemption the bond will be redeemed at maturity as follows:
1. If the closing price of the underlying with the worst performance is at or above the final redemption barrier on the final valuation date (13/04/2026), the bond is redeemed at 100.00 % of the nominal amount (plus the relevant interest amount).
2. If the closing price of the underlying with the worst performance is below the final redemption barrier on the final valuation date, ADRs (defined by the ratio nominal amount / strike price, converted to EUR) of the underlying with the worst performance (worst-of) are delivered. Since the underlying is quoted in a different currency than the bond, the strike price is converted into the currency of the bond on the basis of the applicable exchange rate on the last valuation date. The bond is thereby currency-hedged ("quanto"). Fractions of ADRs are settled in cash in EUR. In this case capital loss occurs. Furthermore, there is no interest payment at maturity.
Information on the product during the term can be found on the issuer's website: https://derivative.credit-suisse.com/at/at/en/detail/cs-multi-memory-express-anleihe-online-handel-21-26/DE000CS8EGS9/CS8EGS