From 4 April 2025 they are available on Mot market and on Eurotlx of the Italian stock exchange two new bonds issued by Intesa Sanpaolo, aimed at those who want to invest in the retail market. The bonds are called in US dollars and have 5 and 10 years deadlines.
The characteristics of the new bonds
Both bonds provide for a minimum cut equal to 2,000 USD.
The first, with ISIN IT0005642761 code:
- has a duration of 5 years;
- It offers quarterly coupons with an initial gross annual rate of 8.00%.
The second, with ISIN IT0005642779 code:
- has a duration of 10 years;
- It provides quarterly coupons with a gross annual rate of 9.00% for the first 2 years.
The main novelty lies in offering the possibility to the potential investor to differentiate personal investment strategies.
Negotiation and technical characteristics
The bonds are Senior Usecuredtherefore not guaranteed but with reimbursement priority compared to other subordinate tools. They are negotiable on the Mot market and on Eurotlx through their own trusted bank or intermediary.
This issue expands the offer of tools available to retail investors looking for currency diversification and different coupon structures. In fact, Intesa Sanpaolo currently proposes bonds in 7 currencies.
The risks of investing in US dollars
Being bonds called in foreign currency, the investor is exposed to exchange risk. A US dollar depreciation compared to the euro could Reduce actual performancewhile an appreciation can increase the overall gain.
The range of Bonds Intesa Sanpaolo allows investors to set up diversified portfolio strategies, relying on an issuer with Rating Investment Grade: S&P’s BBB, Moody’s Baa1, Fitch BBB.
What are retail bonds and how to buy them
Retail bonds are financial instruments issued by public or private bodies, such as banks or companies, designed to be purchased by small investors. Represented a possibility of investing in debt securities to a minimum accessible amount, making them suitable for those who do not have large capital to invest.
The main features are:
- a minimum accessible cut;
- the possibility of paying periodic interests (coupon);
- negotiation on regulated markets;
- a relatively safe performance.
The most common way to buy retail bonds is through a bank or financial intermediary (such as an online broker).
Retail bonds are ideal for investors looking for a relatively stable form of investment, which allows to obtain a periodic income flow through the coupons, even without running the highest risks of other forms of investment such as shares.
They are also useful for diversify a walletas they provide one source of additional income And protection against inflation if the emission is linked to variable rates. Obviously in the case of bonds called in foreign currencies, in addition to the risks already known, as already mentioned, investors also expose themselves to the risk of exchange.
