What is the difference between the nominal amount and share premium in a payout?

What is the difference between the nominal amount and share premium in a payout?

In an offering, the investment amount often consists of two components:
  1. Nominal amount: The nominal value of the instrument. This forms part of the share capital.
  2. Share premium: The additional amount paid above the nominal amount. This is allocated to the capital reserves.

How are the nominal amount and share premium treated in a repayment?

In the event of a repayment following a capital reduction or liquidation, the nominal amount and share premium are treated in accordance with the applicable corporate law provisions.
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As the issuer, you should clearly explain the distinction between the nominal amount and share premium in your investor communications.