Under what conditions is interest paid out?
The conditions and payment dates for interest, profit participation and repayment payments depend on the respective financial instrument, the specific project and the applicable contractual terms.
For traditional bonds, interest payments are generally made on the contractually agreed dates, for example annually or semi-annually. Different provisions may apply to other financial instruments. The conditions applicable to your investment can be found in the relevant contractual and project documentation.
Special provisions for subordinated loans
Subordinated loans with a qualified subordination clause are subject to specific requirements regarding the payment of interest and repayment of the loan.
Even if a contractual interest or repayment date has been reached, this does not necessarily mean that a payment may actually be made at that time.
A payment may be temporarily suspended if the issuer's economic or financial situation does not permit a payment under the applicable contractual and legal requirements.
This may be the case, for example, if:
- the issuer has negative equity
- the available liquidity is insufficient to make the payment
- grounds for insolvency exist
- making the payment would cause or maintain grounds for insolvency
In such cases, no payment will initially be made on the relevant interest or repayment date.
What does this mean for my investment?
The loan generally remains in place. Outstanding interest or repayment amounts do not automatically cease to exist simply because a payment has been suspended.
However, in the case of a qualified subordinated loan, the relevant claims may not be enforceable or payable for as long as the economic and contractual requirements for payment are not met.
If the requirements for payment are subsequently met again, outstanding payments may be made in accordance with the applicable contractual terms.
Negative equity does not in itself automatically mean that a company is subject to insolvency proceedings. However, it may mean that interest or repayment payments are currently not permitted under the terms of the subordinated loan.
How can I stay informed about the current status?
You will generally be informed of significant developments concerning your investment by email.
Further information on the issuer's economic development can be found in the relevant reporting documents. These are available in your personal CONDA Capital Market account under the respective investment.
We therefore recommend regularly checking both your emails and the available reporting documents.
The specific requirements for interest and repayment payments are always determined by the contractual and issuance terms applicable to your investment. Different provisions may apply depending on the financial instrument and issuer.
Recommendation: Always read the project details carefully before investing to understand when and under what conditions payments are made. If you are unsure, please seek financial or legal advice.