The range of investment instruments issued by Banca IMI is further expanded, thanks to 8 new Cash Collect Certificates listed on the SeDeX market of Borsa Italiana starting today 20 September 2018. The certificates offer the investor the possibility of obtaining returns in situations of stability, rise or limited fall of the underlying financial asset with a short-term time horizon.
THE OPERATION
The new Banca IMI Cash Collect Certificates are Capital Conditionally Protected Investment Certificates which have the peculiarity of paying the investor Unconditional Fixed Premiums in the first 3 months and monthly Conditional Premiums during the remaining life of the Certificate.
In particular, all Cash Collect certificates listed on 20 September have the following characteristics: issue price equal to 100 Euros, duration of 12 months and barrier observed only on maturity; provide for the payment of 3 unconditional fixed premiums for the first 3 months of October 2018, November 2018 and December 2018 regardless of the performance of the underlying share and 9 conditional premiums for the remaining 9 months: in order for the conditional premium to be paid, it is sufficient that the underlying on the relevant valuation dates has a value greater than or equal to the Barrier Level. For this reason, even in the event of slight declines in the underlying share, the yield of the Certificate is positive.
As an example, let's see in detail how a certificate works: the Cash Collect on Air France – KLM (ISIN IT0005345282). The investor will have the possibility to purchase this instrument directly on the SeDeX market of Borsa Italiana starting from 20 September 2018 through his/her trusted financial intermediary, phone banking or internet banking. The certificate will pay 3 unconditional fixed premiums of Euro 0,57 for each instrument on the following dates (in order for the premium to be recognized on the payment dates, the certificates must be purchased within 3 working days before the actual payment dates): 17 October 2018 – 19 November 2018 – 17 December 2018
We remind you that on the dates listed above, the payment of the premium takes place regardless of the performance of the underlying. Should the value of the Air France – KLM share fall below the barrier (equal to Euro 6,1054), the certificate will in any case pay the amount of Euro 0,57.
In the following 9 months, the certificate pays a monthly premium conditional on the performance of the underlying on the following dates (the certificates must be purchased at least 3 working days before the payment dates shown):
– January 17, 2019 – February 18, 2019 – March 18, 2019 – April 17, 2019 – May 17, 2019 – June 17, 2019 – July 17, 2019 – August 19, 2019 – September 17, 2019
The payment of the premium of Euro 0,57 in this case is conditional on the performance of the Air France – KLM share. If on the valuation day the price of the underlying is equal to or higher than the Barrier Level, the investor will receive the premium. Conversely, if the value should be lower than the barrier level (equal to 70% of the initial strike value), the certificate will not pay the amount of Euro 0,57.
On the expiry date of the certificate (September 17, 2019) the investor will receive the nominal value of the certificate of Euro 100 increased by the last conditional premium of Euro 0,57 if the value of the Air France – KLM share should be equal to or higher of the barrier level (equal to Euro 6,1054). Otherwise, the investor will suffer a loss commensurate with that which he would have obtained by investing directly in the underlying share.
The complete list of Banca IMI Cash Collect Certificates is available on the issuer's website: www.bancaimi.prodottiequotazioni.com
