Bank of America Merrill Lynch today confirmed the listing of Obbligazioni INVEST|BOND, a 15 year, 5,25% fixed rate bond with an annual coupon, on the Italian Exchange.
The INVEST|BOND 5,25%, issued by Bank of America Corporation, aims to provide additional income to Italian savers with a gross annual coupon of 5,25% for the next 15 years, subject to the option of the issuer to redeem the bonds on each interest payment date occurring on or after 31 January 2021 . No built-in distribution fees are incorporated into the price of the product and the bond can be traded directly via the MOT segment of the Italian Exchange, EuroTLX and Hi-mtf, providing liquidity and transparency on pricing.
It is possible to buy or sell the bonds, during any trading day directly from an investor’s bank, via phone or internet banking. The minimum investment size is 1,000 Euro. The INVEST|BOND 5,25% allows Italian investors to benefit from a 5,25% coupon, currently taxed at 12.50%.
Bond details
|
ISIN Code
|
Gross Coupon p.a.
|
Coupon Payment
|
Maturity
|
Call Feature
|
|
XS0584356942
|
5,25%
|
Annual
|
31/01/2026
|
Callable by the issuer annually from 31/01/2021
|
Sample of potential invested amount and related performance.
|
Invested amount
|
Gross annual coupon
|
Net annual coupon
|
Monthly Projection
|
|
1,000
|
52.5
|
45.9
|
3.8
|
|
5,000
|
262.5
|
229.7
|
19.1
|
|
25,000
|
1,312.5
|
1,148.4
|
95.7
|
|
100,000
|
5,250
|
4,593.8
|
382.8
|
|
500,000
|
26,250
|
22,968.8
|
1,914.1
|
Pietro Poletto, Head of ETF & Fixed Income Market at London Stock Exchange Group, commented: “We are delighted to welcome Bank of America Corporation as a new issuer on Borsa Italiana’s MOT market. This choice of MOT for the listing and launch of its first Obbligazioni INVEST|BOND confirms the efficiency of our retail bond market, as also testified by the historical highs in contracts recorded in 2010.”
Marco Piccioni, co-head of EMEA Cross-Asset Retail Sales at Bank of America Merrill Lynch, commented: "The Italian market is the biggest in Europe for fixed income instruments designed for retail investors. As such, we are delighted to offer retail investors one of our fixed rate bonds, which will be quoted directly on the MOT segment of Borsa Italiana. The listing of INVEST|BOND 5,25%, issued by Bank of America Corporation, fulfils the need of Italian investors to achieve an additional yield via a simple, liquid and transparent investment."
