In some subordinated loan projects, investors can determine the preferred interest rate for themselves as part of the investment with the target interest rate. The issuer gives potential investors a range of interest rate steps. For example, 3.00% to 7.00%. After you have taken a close look at the investment project, you choose an interest rate that reflects the risk of the investment project for you. e.g. you move the slider to 4.50 %. In these projects, all interested investors choose their preferred interest rate. Until the maximum amount is reached, the company must accept the maximum interest rate. If the maximum amount is oversubscribed, the company may benefit from lower interest rates, as investors with lower interest rates will be favoured in the allocation by the company.
The Invesdor maximum-interest-rate principle applies: the interest rate that the company sets is not only paid to all investors who have selected it, but also to all others who have selected a lower target interest rate. For investors who have specified a higher target interest rate, no contract is concluded and they can use one of the next investment opportunities.
Please note: In rare exceptional circumstances, the companies reserve the right to reject offers even if they include the selected interest rate. In addition, in order to comply with the statutory thresholds, the companies may reject loan offers if the threshold would otherwise be exceeded.