About participation certificates
Participation certificates are securities, for the most part bearer securities, that can be traded on an exchange, which lie somewhere between equities and bonds due to their construction. They securitise a participation right in the form of an annual distribution based on the net profit of the issuer.
As participation rights involve the rights of creditors the holder is entitled to be repaid the nominal amount of the principal at maturity. In contrast to a shareholder the holder of the participation certificate has no voting rights and is also not entitled to participate in the Annual General Meeting or shareholders’ meetings.