Covered Bond

  • Fully customisable.
  • Debt that is secured by listed company’s asset and/or future cash flow.
  • Classified as a liability in the listed company’s balance sheet.
  • Interest rate is between 10% and 20% per annual in most of the cases.
  • Interest rate is paid quarterly
  • In the event of default, the covered bond maybe converted to floating convertible bond.
  • No prepaid penalty if listed company decides to redeem the bond.

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