The range of investment instruments issued by Banca IMI is further expanded, thanks to 8 new Double Bonus Certificates listed on the SeDeX market of Borsa Italiana starting today 14 November 2017. The certificates offer the investor the possibility of obtaining a premium which ranges from 6,20% to 9% in December 2017 even in the event of declines in the underlying asset (within the Barrier Level) and a further premium at maturity in the event of stability or increases in the underlying asset.
THE OPERATION
The new Banca IMI Double Bonus Certificates are Conditionally Capital Protected Investment Certificates which have the peculiarity of paying the investor a bonus in the first month of life of the certificate if the value of the underlying asset is equal to or higher than the barrier and at maturity a further bonus if the value of the underlying is above the initial strike value. At maturity, even in the event of declines in the underlying asset (within the Barrier Level), the Issue Price of the Certificate is repaid.
In particular, all Double Bonus certificates listed on 14 November have the following characteristics: issue price equal to 100 Euros, duration of 24 months and barrier observed only on maturity; provide for the payment of 1 bonus in December 2017 if the underlying asset is equal to or higher than the barrier level. On the expiry date, 3 scenarios can occur:
1) The underlying value is equal to or greater than the initial strike: the certificate pays the issue price plus a further bonus
2) The underlying value is between the initial strike and the barrier level: the certificate does not pay the bonus but reimburses the issue price of the certificate equal to Euro 100
3) The value of the underlying is below the barrier level: the certificate will repay an amount commensurate with that which would have been obtained by investing directly in the underlying share, with consequent loss on invested capital.
As an example, let's see in detail how the Double Bonus works on Fiat Chrysler Automobiles (ISIN IT0005311995). The investor will have the possibility to purchase this instrument directly on the SeDeX market of Borsa Italiana starting from 14 November 2017 through his/her trusted financial intermediary, phone banking or internet banking. The certificate will pay the bonus in December 2017 equal to Euro 8,10 if the value of Fiat Chrysler Automobiles is equal to or higher than the barrier level, equal to 10,3600.
On the expiry day of the certificate (November 11, 2019) the investor will receive a further bonus amount of Euro 8,10 in addition to the issue price of the certificate (equal to Euro 100) if the value of the Fiat Chrysler Automobiles share were to be equal to or greater than the Initial reference value (equal to 14,8000); should the value of Fiat Chrysler Automobiles fall between the barrier level (equal to 10,3600) and the initial reference value, the investor will receive the nominal value of the certificate equal to Euro 100. Lastly, if the underlying should have a value below the barrier level, the investor will record a loss commensurate with that which he would have obtained by investing directly in the underlying share.
