Bonds and CLNs

We support issuers across the full bond structuring process, from early-stage design through issuance and opening at SIX SIS, Euroclear and Clearstream for international settlement and apply for listing if requested. We advise on the overall issuance to ensure each bond aligns with issuer objectives and investor expectations.  

Our approach balances flexibility with standardization, enabling efficient execution while meeting regulatory and market requirements.

As acting Paying Agent, we open an account for the company on ISP's platform and arrange the issuance of the note through SIX SIS with a Swiss ISIN, ensuring appropriate governance and regulatory compliance.

The capital proceeds from the investors’ subscription may be used for any company-related investments and may be transferred to the company’s principal bank.

Our Swiss-regulated framework provides credibility and investor confidence while allowing issuers to access international capital markets efficiently and compliantly.

Throughout the lifetime of the bond, we provide ongoing administration and oversight. This includes cash flow management, interest and principal payments, reporting, corporate actions and coordination with relevant service providers.

Our operational platform ensures accuracy, transparency and continuity, allowing issuers to focus on their core business rather than day-to-day financial administration.

CLN stands for Credit Linked Note. A Credit Linked Note is an instrument for securitizing private loans to make them bankable. The CLN is issued with a Swiss ISIN as a tradable security. A CLN serves as an alternative to conventional loans, which in many cases may be prohibitively expensive or difficult to obtain.

A single loan can be securitized and funded by numerous investors via a CLN, providing better terms to both borrowers and lenders.

With a CLN, investors can expand their existing universe of financial instruments and get access to a less correlated asset class – the private debt market.

Typical projects associated with CLNs are:

• Real Estate Development

• Construction Projects

• Business Developments and Acquisitions

CLNs have numerous advantages for investors:

Advantages in Comparison to Loans

• Pooling of numerous lenders with one single financial instrument

• Provision of standardized borrower due diligence

• Bankable financial instrument with enhanced liquidity and daily published prices, if required

• Better credit terms for both borrowers and lenders

• Can provide advantages in terms of double tax treaties

Advantages in Comparison to Bonds

• Significantly leaner legal documentation and clear payment terms

• Faster time-to-market

• Substantially lower set-up costs and less seed money required

• Higher yield due to lower associated costs

• Higher flexibility, where the reference unit, tenor and currency etc., can be adjusted independently of each other

General Advantages

• Integrated Administration: Simplify the administration of your investment vehicle and benefit from collaboration with our top service providers.

• Compliance Coverage: Outsource onerous compliance procedures and focus on growing and managing your business.

• Secondary Market: Offer a secondary market.

• Life-cycle Management: Outsource the life-cycle management of your investment and focus on developing your projects.

• Collateral Management: Structure and offer secured issuances with smart collateral for better investor protection.

• Access to Capital: Gain access to global capital markets and diversify your investor base.

The issuance of a CLN follows a clear and structured process. It begins with the identification of a financing opportunity by a product initiator. We then coordinate the subsequent structuring, issuance, and lifecycle administration of the note to ensure transparent and efficient execution.

1. Opportunity Identification

A borrower with a project or funding need is identified, and the product initiator—who may also be the borrower—typically has access to investors willing to provide the required capital.

2. Structuring & Loan Agreement

We support the set-up of a Special Purpose Vehicle (SPV) to ring-fence potential credit risks and coordinate the preparation of the issuance documentation with our partners. We perform due diligence on the potential borrower. Thereafter, the corresponding loan agreement is prepared by the administrator of the SPV.

3. Securitization & Issuance

The loan is securitized through the issuance of a CLN with a Swiss ISIN, which is opened with SIX SIS, Euroclear, and Clearstream for international settlement, and a technical listing may be arranged upon request. Investors subscribe to the certificate, and the proceeds are transferred to the borrower.

4. Interest Payments & Maturity

Investors receive coupon payments derived from the loan interest directly into their custody accounts. At maturity, the principal is repaid through the SPV and distributed to the investors.

Our streamlined processes ensure efficient and timely market access while maintaining high documentation standards throughout the transaction lifecycle.

During the life of a CLN, we provide ongoing operational support, including pricing publication, payment processing, investor notifications, and settlement in accordance with the transaction documentation. This ensures the orderly and transparent handling of complex credit-linked mechanics.