What does “annualized” mean?

An “annualized” or “amortized” repayment schedule means that a portion of the principal invested by subscribers will be repaid with each payment, along with the interest due. This way, you receive the same amount at each payment date, according to the frequency you selected at the time of subscription (annual, quarterly, or monthly), consisting of a portion of the principal and interest. For example, if you invest €1,000 in a project offering bonds at a gross annual rate of 5%, with a loan term of 4 years and annual repayment installments, you will receive 4 payments of €282.01 gross, as detailed below:

• Year 1: €50 in gross interest and €232.01 in principal repayment
• Year 2: €38.40 in gross interest and €243.61 in principal repayment
• Year 3: €26.22 in gross interest and €255.79 in principal repayment
• Year 4: €13.43 in gross interest and €268.59 in principal repayment

This investment option therefore carries less risk than a bullet bond (since your principal is gradually repaid), but it requires reinvesting the repaid principal to avoid reducing the return on these funds.