Early redemption can happen in two scenarios:
- Mintos may decide to pay back the bond before the scheduled maturity. This is also referred to as a call option and is a common feature of subordinated bonds. The exact provisions that allow Mintos to redeem the bond early are specified in the base prospectus.
- Certain regulatory events might also lead to early redemption. For example, if the bond no longer qualifies as Tier 2 capital, Mintos might be allowed to redeem it.
If Mintos redeems the bond early, it has to repay the principal amount of the bond, just as it would at normal maturity. Typically, the redemption is at par value (100% of the face value). For example, if you invested €1,000, you’d get €1,000 back at the redemption date.