Banca IMI expands the range of investment instruments with 8 new Cash Collect Certificates which are listed on the SeDeX market of Borsa Italiana starting today 15 June 2017. The certificates - explains the Bank's press release, which we reproduce in full - offer the investor the possibility of obtain returns in situations of stability, rise or limited fall of the underlying financial asset with a short-term time horizon.
THE OPERATION
Banca IMI's Cash Collect Certificates are Conditionally Capital Protected Investment Certificates which have the peculiarity of paying the investor unconditional Fixed Premiums in the first 2 quarters and quarterly Conditional Premiums during the remaining life of the Certificate.
In particular, all Cash Collect certificates listed on June 15th have the following characteristics: issue price equal to 100 Euros, duration of 18 months and barrier observed only on maturity; provide for the payment of 2 unconditional fixed premiums for the first 2 quarters in the months of September and December 2017 regardless of the performance of the underlying share and 4 conditional premiums for the remaining 4 quarters: 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 Enel (ISIN IT0005262339). The investor will have the possibility to purchase this instrument directly on the SeDeX market of Borsa Italiana starting from 15 June 2017 through his/her trusted financial intermediary, phone banking or internet banking. The certificate will pay 2 unconditional fixed premiums of Euro 1,00 for each instrument on the following dates (for the premium to be recognized on the payment dates, the certificates must be purchased within 3 working days before the actual payment dates):
– 13 September 2017
– 13 December 2017
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 Enel's share be below the barrier (equal to Euro 3,6375), the certificate will in any case pay the amount of Euro 1,00.
In the following 12 months, the certificate pays a quarterly premium conditional on the performance of the underlying on the following dates (the certificates must be purchased at least 3 business days before the payment dates shown):
– 13 March 2018
– 13 June 2018
– 13 September 2018
– 13 December 2018
The payment of the premium of Euro 1,00 in this case is conditional on the performance of the Enel 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 75% of the initial strike value), the certificate will not pay the amount of Euro 1,00.
On the expiry day (December 13, 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 1,00 should the value of the Enel share be equal to or higher than the barrier level (equal to Euro 3,6375). 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
