Interesting yield potential of up to 40% in five years with a minimum return of 100% of the nominal value (see Note) of PD RESPONSIBLE 5 at the date of its maturity.

ESG is the key “investment theme” for Prémiový dluhopis RESPONSIBLE 5. Its yield depends on the trend of the Solactive ERSTE Green Invest Index VC global index, which is diversified into six underlying assets – ESG stock (USA, Europe, Japan, Emerging Markets) with a 60% weight of the portfolio and ESG bonds (corporate and corporate high yield bonds) accounting for 40% of the portfolio. The individual assets in the index portfolio are represented by the ETF (exchange traded funds) iShares from the reputable company BlackRock. The portfolio is so robustly diversified from thousands of the company’s shares and bonds which meet the strict ESG criteria of the MSCI SRI indexes (Socially Responsible Investment). The control of the portfolio’s volatility stabilises the yield and limits the losses during slumps on markets when the set algorithm targets 7% volatility and compares it with the historical volatility of the monitored portfolio. At high volatility this mechanism reduces exposure to dynamic assets and transfers funds to the money market.

• The issuer is Erste Group Bank AG (S&P's A / Moody's A2 / Fitch A)
• Underlying asset: Solactive ERSTE Green Invest Index VC

For more information see the leaflet.

How does PD  RESPONSIBLE 5 work?

• The yield of five-year PD RESPONSIBLE 5 depends on the development of the global Solactive ERSTE Green Invest Index VC index.
• The initial value of the underlying asset shall be fixed on 3 March 2021.
• The underlying asset is observed annually. Each year its value is recorded on the observation day.
• The average value of the underlying asset is calculated from these 5 values acquired during individual days of observation. This is then compared to its initial value.
• The total amount of the payout at maturity is calculated: 100% of the nominal value of PD RESPONSIBLE 5 + 80% participation × (average value of 5 observations of the underlying asset/ initial value – 1).
• Even with a greater fall in the underlying asset at least 100% of PD RESPONSIBLE 5 nominal value (see Note) is always paid out at maturity thanks to the guarantee.
• For the duration of PD RESPONSIBLE 5 its price may fall even below 100% of its nominal value with regard to the development of the underlying asset and market conditions.
• The maximum amount of the premium is fixed at 40% of the Premium Bond nominal value for the duration of PD RESPONSIBLE 5, i.e. for 5 years.
• Regular annual observation and averaging of the acquired index values partly protect the investor from any sharp fall of prices of the observed underlying asset just before maturity. The total yield does not depend only on the closing value of the observed underlying asset, but on the continuous value of the underlying asset throughout the duration of PD RESPONSIBLE 5. However regular observation can also reduce the resulting yield (if for example there is a rise in the underlying asset just before maturity).

You will find examples of scenarios at maturity in the leaflet

• The maturity date of the Premium Bond shall be on 12 March 2026
• The disbursement of the yield and nominal value shall be conducted by Česká spořitelna
• Liquidity: daily according to current market prices published in the Exchange Rate List of Česká spořitelna, a.s.
• It takes 3 working days to settle the buying and selling of the Premium Bond