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£500m Listed Corporate Bond Programme: Providing high yield asset backed returns through corporate peer-to-peer lending Senior Secured bond series, typically paying between 6% and 8% fixed pa; corporate debt in asset rich business sectors, including financial & professional services, property development and luxury assets For professional advisers only. Not for general circulation or distribution www.corporatefinancebonds.com

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Page 1: £500m Listed Corporate Bond Programmecorporatefinancebonds.com/admin/...brochure-final... · Corporate Bond Programme: Providing high yield asset backed returns through corporate

£500m Listed Corporate BondProgramme:

Providing high yield asset backed returns through corporate peer-to-peer lending

Senior Secured bond series, typically paying between 6% and 8% fixed pa; corporate debt in asset rich business sectors, including financial & professional services, property development and luxury assetsFor professional advisers only. Not for

general circulation or distribution

www.corporatefinancebonds.com

Page 2: £500m Listed Corporate Bond Programmecorporatefinancebonds.com/admin/...brochure-final... · Corporate Bond Programme: Providing high yield asset backed returns through corporate

The Corporate Finance Bond Series

Predictable returns secured from asset based lending and corporate peer-to-peer (P2P)lending

How does it work?The bond series raises capital for Corporate Finance Bonds Limited to invest in asset based lending and/or the thriving P2P corporate lending market. Investors in the bond can thus benefit from opportunities presented by the restrictions on lending caused by the banking crisis by providing good quality companies with access to capital at premium rates.

The coupon payable to investors in the bonds is between 6% and 8% fixed per annum, depending on the nature of the securitisation package and prevailing market trends, with no deductions for tax and repayment of the principal invested on maturity.

The bonds are listed and are an eligible asset under the Eligible Assets Directive and are deemed transferable securities under UCITs rules. The securities will be valued monthly and available to be traded at any time, although it is designed to be held to maturity.

A bond is suitable for professional advisers seeking stable and predictable returns with capital security from a simple, highly compliant structure. It is ideal to be held as part of a balanced portfolio and is acceptable to Professional Trustees of pension companies, to investment/wrap platforms, personalised life bonds and professional indemnity insurers.

The bond securities are linked to a carefully vetted pool of corporate debt instruments such as Loans, Corporate Bonds, Loan Notes or Preference Shares.

The bond securities focus on “real asset” backed transactions with stable, proven yields.

The types of business that the bonds seek to invest in will generally fit the following criteria:

European headquartered

Management team with good track record in the relevant business sector

High growth businesses with a focus on vertical integration of products and services or outsourcing - both proven techniques to ensure efficiency and cost management

Demonstrable and verifiable clients and/or client acquisition models

Scaleable within UK and elsewhere through adoption of new business models and technology

Real assets or accounts receivable to cover future debt obligations

Fully articulated business plan supported by cash flow projections as to “affordability” of interest and capital repayment

Clear positioning as “thought leader” in chosen business sector

Diversified business model

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Investment Highlights

Why invest?ABL is used by those companies that are:

Predictable Asset ValueLegally enforceable security with predictable valuations

Management Expertise Management seeks out short term (3 to 5 year) asset based and corporate P2P lending opportunities

Risk Management Counterparty credit risk managed through appropriate security arrangement over the borrowing base - typically a debenture over corporate assets

Professionally Managed Each bond series is part of a professionally managed £500m programme, listed on the Global Exchange Market of the Irish Stock Exchange

Stable YieldInterest rate represents known return over a known period

Fundamental TrendsWith the current restrictions in global bank lending there is a significant opportunity to bridge the funding gap with asset based lending

Corporate GovernanceProfessional trustees oversee the bonds

LiquidityEach bond is listed on the Global Exchange Market of the Irish Stock Exchange. Although designed to be held to maturity, they are tradable on the secondary market via an appointed Market Maker with bid and offer prices for the Bonds recorded on Bloomberg

Investment in asset based lending (ABL) is a proven strategy. Pension funds, private banks and institutional wealth managers worldwide have made substantial investments into the sector. According to the Commercial Finance Association, ABL is over a £200bn market.

The exponential growth of P2P lending provides further investment opportunities.

ABL is a way of providing fast growing or highly leveraged companies with working capital. This form of financing is ideal for companies that do not fit typical bank lending criteria but have tangible assets which can be used as collateral.

The principal advantage is the acceleration of cash flow to the borrower to support its working capital needs.

Looking for growth financing

Seeking project specific finance

Requiring bridging finance

Needing financing to take advantage of immediate and highly lucrative business opportunities

Looking to refinance existing debt

Non-conformant with restrictive lending policies of high street banks

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Corporate Finance Bonds Limited is part of the SA Group of companies www.sa.uk.com

ABOUT THE BONDS

IMPORTANT NOTICE

KEY BOND FEATURES

Purchases of securities are simply made with reference to the ISIN number through professional advisers. Please see the formal terms and conditions, including the Base Prospectus, Pricing Supplement and individual Fact Sheet for each bond issue.

The bonds are issued by Corporate Finance Bonds Ltd as part of a £500m securitisation programme listed on the Global Exchange Market of the Irish Stock Exchange. The assets and liabilities of each bond issue are legally segregated.

Corporate Finance Bonds Ltd cover a range of business sectors where there are identifiable assets against which a securitisation package can be structured.

Operating principally but not exclusively in the UK and Europe, the assets held within each bond are allocated to a segregated pool of underlying business loans subject to meeting the conditions of the agreed investment mandate.

The Board of Directors of Corporate Finance Bonds Ltd approves the issuance and secures a listing of the asset, the full particulars of which are set out in the terms and conditions relevant to each bond. Each bond will be listed on the Global Exchange Market of the Irish Stock Exchange and traded through Crest and/or Euroclear/Clearstream.

As the assets are legally contractual obligations to pay the coupon and meet the capital redemption as set out and to only invest in the specific type of assets described in the published particulars for each bond, the product is designed to achieve stable returns for purchasers of such bonds along with the certainty of investment policy and strong governance, through independent Trustees.Corporate Finance Bonds Ltd seeks to identify significant development trends within the UK and international financial, professional services, property and luxury assets sectors where there is considerable opportunity to grow market share and a sustainable revenue stream or accelerated profits potential.Corporate Finance Bonds Ltd has considerable global experience

in working with proven specialists with skills in creating bespoke securitisation packages and seeks to access their intellectual capital in specific geographical markets and/or business sectors.

The Bond Series is issued by: Corporate Finance Bonds LimitedThe City Arc89 Worship StreetLondon, EC2A 2BF

T: 0203 411 2763E: [email protected]: www.corporatefinancebonds.com

Investments in Corporate Finance Bonds Limited are NOT covered by the Financial Services Compensation Scheme. The investment opportunity is only available to persons who are Certified High-Net-Worth Investors, Certified Sophisticated Investors, Self-Certified Sophisticated Investors, Certified Restricted Investors and/or Professional Investors or individuals who take independent advice from an authorised Independent Financial Adviser and only following receipt of the full offer document. Investments in Corporate Bonds and the income from them will be at risk and you may lose some or all of the funds invested. This flyer, which is a financial promotion for the purposes of Section 21 of the Financial Services and Markets Act 2000, has been approved for UK publication by Clear Capital Management Limited Liability Partnership of 35 New Bridge Street,London, EC4V 6BW, which is authorised and regulated by the Financial Conduct Authority with firm reference number 598743.

Consolidation activity within the financial advisory market

Technology platforms to support financial adviser fund management activity and client access

Building wealth management advisory services for professional advisers such as stockbrokers, accountants and solicitors

Leveraging institutional investment services and disciplines into a wider wealth management and/or retail sector

Each bond is issued as part of a £500m programme listed on the Global Exchange Market of the Irish Stock Exchange, one of the primary exchanges for listing debt

The “securitisation package” is typically created through a registered debenture against all assets of underlying borrowers

The bonds are liquid transferable securities and are “mainstream assets” for UK and international advisers, pension schemes and PI insurers

The bonds are tradeable through Crest, Euroclear and/or Clearstream and priced on Bloomberg

Investment Capital securitised against “real assets”

Independent trustees and registrars

Legal advisers to CFBL and the Programme are GRM Law

Minimum investment £100,000 with £1 top ups (for institutional investors the limit applies to consolidated accounts, not the underlying client investor)