An autocall (autocall product) that pays a conditional coupon, in addition to the possibility of an early redemption of capital linked to the performance of an underlying asset (share of stock). The underlying asset price is set against an autocall barrier (that steps down on each annual date over its lifespan) for determination of the autocall payout. If the price is equal to, or greater than, the autocall barrier, the investor (holder) receives, on maturity, the full par value of the investment amount in addition to the following:

Payout = coupon rate × n

Where: n is number of years invested.

Once the amount invested and payout are received by the holder, the investment ceases to exist.

As a general condition, if the autocall has not redeemed early, the holder receives, on maturity, 100% of the amount invested, unless the underlying asset has dropped below a pre-defined risk barrier– either at maturity (European barrier) or during the investment term (American barrier). In this case, principal amount (par value) of the investment to be repaid would get reduced by a percentage amount equal to the percentage of the final drop in the underlying asset level below the initial level.