New license plate issue Goldman Sachs with a view of Europe. The American banking giant has decided to enrich its range of bonds by issuing on the MOT market (EuroMOT segment) of Borsa Italiana the new Goldman Sachs Bonds Fixed Rate Callable 5.00% in Euro with a duration of 10 years (ISIN XS2521873328).
The new bonds offer investors a fixed annual coupon flow of 5.00% gross and the full repayment of the nominal value at maturity of € 1,000 for each product. From the second to the ninth year, Goldman Sachs has the option of early redemption of the bonds at 100% of their nominal value. In this case, the duration of the bonds would be less than 10 years, with a consequent decrease in the overall investment income.
In detail, the bond with ISIN XS2521873328 has a duration of 10 years and pays an annual fixed coupon of 5.00% gross (3.70% net) until maturity (28 September 2032) or until the date of any redemption. anticipated. The coupons will be paid on September 28 of each year until the maturity date (included), or until the date of any early redemption. The first coupon payment date will be September 28, 2023.
The yield of the bonds will also depend the purchase price and the sale price (if carried out before maturity) of the same on the market. These prices, depending on various factors, including market interest rates, Goldman Sachs creditworthiness and liquidity level, could also differ significantly from the issue price and redemption amount respectively.
Goldman Sachs, at its discretion, may redeem bonds early, for example, when your refinancing cost is lower than the interest rate paid by the bonds. In such circumstances, investors are exposed to the risk of reinvesting the amount received by way of redemption from Goldman Sachs at an effective market interest rate lower than that of the redeemed bonds.
Bonds are subject to the credit risk. In the event that Goldman Sachs is unable to meet its bond obligations, investors may lose some or all of the capital invested.
Finally, it should be noted that the Italian tax rate applicable on the proceeds deriving from the bonds, and in force at the time of issue, is equal to 26%.
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