The range of investment instruments issued by is expanding IMI Bank, thanks to 8 new Cash Collect Certificates listed on the SeDeX market of Borsa Italiana starting today 14 December 2017. The certificates offer the investor the possibility of obtaining returns in situations of stability, upside or limited downside 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 December 14th have the following features: issue price equal to 100 Euros, duration of 12 months and barrier observed only at maturity; provide for the payment of 3 unconditional fixed premiums for the first 3 months of January 2018, February 2018 and March 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 the operation of a certificate: Cash Collect on Deutsche Bank (ISIN IT0005317471). Investors will have the opportunity to purchase this instrument directly on the SeDeX market of Borsa Italiana starting from 14 December 2017 through their trusted financial intermediary, phone banking or internet banking. The certificate will pay 3 unconditional fixed premiums of 0,58 euro for each instrument on the following dates (in order for the prize to be recognized on the payment dates, the certificates must be purchased within 3 working days before the actual payment dates):
– January 12, 2018
– February 12, 2018
– March 12, 2018
We remind you that the payment of the premium takes place on the dates listed above regardless of the performance of the underlying. Should the value of the Deutsche Bank share fall below the barrier (equal to Euro 13,2160), the certificate will in any case pay the amount of Euro 0,58.
In the following 9 months the certificate pays a monthly premium conditional on the performance of the underlying on the following dates (certificates must be purchased at least 3 business days before the payment dates shown):
– April 12, 2018
– May 14, 2018
– 12 June 2018
– 12 July 2018
– 13 August 2018
– 12 September 2018
– 12 October 2018
– 12 November 2018
– 12 December 2018
The payment of the premium of Euro 0,58 in this case is conditional on the performance of the share Deutsche Bank. 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 80% of the initial strike value), the certificate will not pay the amount of Euro 0,58.
On the day of deadline (December 12, 2018) of the certificate, the investor will receive the nominal value of the certificate of Euro 100 increased by the last conditional premium of Euro 0,58 if the value of the Deutsche Bank share should be equal to or higher than the barrier level (equal to Euro 13,2160) . Otherwise the investor will suffer a loss commensurate with that which he would have obtained by investing directly in the underlying share.
