In addition to private equity, private debt has attracted a lot more interest in recent years. Given the huge size of this market, opportunities for interesting projects with higher yields are almost endless. Private loans can be securitised into any type of bond, including convertibles or a CLN. This is a highly efficient way to access institutional fixed-income investors worldwide.
Problem: Very often companies seek additional capital to fund various sorts of projects. Examples include financing a new market entry, early-stage working capital, a new product line, etc. The traditional financing through a bank loan, if provided at all, is typically rather expensive and inflexible. Setting up several individual private loan contracts with friends, family or an individual’s further associated network is highly cumbersome and resource-intensive.
Solution: Via a CLN, a private company can very efficiently source funding from various known qualified investors. Given that the borrower, i.e. the company seeking to finance a certain project, can negotiate terms with its investors directly, financing costs are typically significantly lower compared to traditional financing methods. With a marketable CLN, investors can easily finance the borrower while the borrower formally interacts solely with the lender (the CLN). Furthermore, investors can track their investment in the custody account of their house bank.
Simplified Example: A CLN to Finance a New Market Entry
1. Qualified investors instruct their custody bank to buy the CLN certificate via the Swiss ISIN.
2. Through this buy transaction, the investor receives CLN certificates booked into their custody account while the buying price in cash flows into the CLN’s account at ISP.
3. As soon as cash has arrived at ISP, we, in our role as paying agent, transfer the cash proceeds to the Borrower’s bank account so they can start financing the project.
Experience
1.000+ ISINs serviced
Understanding
As professional Asset & Wealth Managers, our understanding of our clients' needs is inherent to our practice.
Securities Firm
We are a long standing, reputable Swiss securities firm, with a broad team of product & securitisation experts.
Skills
Our highly skilled relationship managers, product specialists and traders are accompanied by experts within onboarding, legal & compliance and many more fields.
Trading Lines
700+ financial institutions have open trading lines with us, allowing our clients numerous advantages.
Partners
In addition to our inhouse trading services, our clients are also provided with access to trading via several prime brokers in the market.
Flexibility
We always put our clients and their needs first, we are highly flexible and can accommodate any needs.
Our team consists of experts in the field of securitisation. We take a dynamic, dedicated and tailored approach that enables us to realise our clients’ goals and visions. With our can-do attitude, we strive to serve our clients with the highest level of professionalism in the most efficient way.
Trading financial products carries significant risks, including the risk of a complete loss of investment, and may not be suitable for every investor. Therefore, please consider our risk warnings carefully, ensure that you have clearly understood all associated risks and that your legal place of your residence or registered office allows you to access this information.
