The conditions of the bond may include special covenants covering non-repayment, which will be different depending on whether it is simply a delay or is due to the issuer's default.
The issuer has the right to set a minimum amount above which the transaction can be closed even if the target amount has not been reached.
Azimut Direct selects companies through a procedure that requires to verify their reputation and credit score, analysing corporate financial statements and banking history. Before an offer is published, the company must provide all the proper details and documentation in order to represent the investment clearly and with the highest transparency. Still, Azimut Direct does not provide any assessment on the quality of the company.
The actual duration of the operation clearly depends upon the length of the offer period. For bonds, for example, we expect about 10-12 weeks to elapse between the date when the company’s documentation set is completed and the settlement date.
The logic of these securities is to create an alternative channel to traditional bank funding, they thus represent a typical "buy-and-hold" investment, rather than a trading investment. The market is currently very illiquid and so you may have to consider the possibility of keeping the bonds in your portfolio until maturity.
The financial instrument is one and only has an ISIN code. The final conditions will therefore be the same for all subscribers.
They are both debt instruments but "minibonds" refers to bonds with a nominal amount up to EUR 50M issued by companies not listed on the stock exchange.