Is your company looking to raise large capital to fund a project?
A Corporate Bond may be what your company needs to take your project to fruition.
What is a Corporate Bond?
“A corporate bond is a type of debt security instrument that is issued by a company and sold to investors. Upon successful funding, the company receives the capital it needs and in return the investor is paid a pre-established number of interest payments at either a fixed or variable interest rate. When the bond expires, or "reaches maturity," the payments cease, and the original investment is returned.” ~ Investopedia
We Offer the Following Services:
Prospectus Drafting
Our firm offers Corporate Bond drafting services to assist companies around the world in raising capital for their projects.
Corporate Bonds are becoming an attractive method for companies to raise capital for projects while providing a return for investors. To initiate the process, one requires an initial Offering Prospectus to be drafted. This is a formal legal document which our firm drafts on behalf of clients, which includes information on the Corporate Bond offering.
The Prospectus provides potential investors (both private and institutional) with insight into the company’s intended project, the management team of the company, the financial performance and yield of the bond. The Prospectus deals with the offering of securities and may be regulated by certain stock exchanges, depending on the jurisdiction. Our firm has experience with drafting Offering Prospectuses for entities worldwide, including jurisdictions such as the United States, Canada, the United Kingdom, the Caribbean, and Chile.
In addition to drafting the required Prospectus, our firm also drafts additional Offering Documents, which, in the case where a Trustee is mandated, consist of the following:
Note Trust Deed or Trust Indentures Security Trust Deed and Debenture Agreements Power of Attorneys for listing on stock exchanges Sale of Share Agreements| Jurisdiction | Industry | Value of Bond | Green Bond Status |
|---|---|---|---|
| Canada | Vertical Farming | $268 million | Yes |
| South Africa | Renewable Energy | $2 Billion | Yes |
| United States | Hotel & Luxury Resorts | $250 million | No |
| Greece | Waste to Energy | $247 million | Yes |
| Caribbean Islands | Telecommunications | $661 million | No |
| Chile | Gold Mining | $195 million | No |
| United States | Green Buildings & Resorts | $550 million | Yes |
We have experience drafting Offering Documents for Mining Companies, the Telecommunications Services Industry, the Hotel Industry, and various Green Projects such as Solar Energy, Waste-to-energy, and Sustainable Agriculture, with Corporate Bonds ranging from $195 million to $2 billion in size.
Green Bond Frameworks
Our newest offering provides a bespoke service of facilitating Green Bond Accreditation for Green and Sustainable Bond Projects.
Firstly, what is a Green Bond?
"A Green Bond is a type of Corporate Bond to raise capital for projects which have an element or elements of climate sustainability in them."
A Corporate Bond which carries Green Bond accreditation is extremely attractive in the current market. Institutional investors have been investing into Green Bonds over the past few years, attracted by the market’s size, liquidity and performance. Currently, there are in fact more funds available in the market for Green Bond investment than there are Green projects.
Institutional investors usually seek to fund verified and accredited Green Bond Projects, and many seek accreditation from third party verifiers in the form of Second Party Opinions or certification.
In order for a Bond Issuer to get this recognition in the capital markets industry, the Bond Issuer will need to have a Green Bond Framework, which is in line with specific criteria of international climate standards and green bond principles. The Green Bon Framework should set out the Project’s Use of Proceeds, and specify how the Bond Issuer will evaluate Projects and Assets according to specific criteria and earmark funds for climate and sustainability related objectives.
Our firm has a team of specialists devoted to drafting Green Bond Frameworks. We firstly provide assistance to Bond Issuers, and work with world leading ESG entities to assess the specific type of Green Bond you may have, and help you discover the best Green Bond accreditation for your Bond. Hereafter our team drafts the Green Bond Framework and will facilitate the accreditation process with a third party verifier, to help you get your accredited Green Bond.
Some methods of proving the integrity and transparency of a Green Bond is through a Bond’s alignment to the core components of the ICMA Green Bond Principles. Other recognised standards are the Climate Bond Standards initiated by the Climate Bond Initiative.
Our firm has experience in drafting Green Bond Frameworks for both of these internationally recognised standards, and can assist companies in determining which accreditation is best suited for your Bond.
Bond and Security Trustee Services
Investors often seek assurance that their funds are being utilised in accordance with the Use of Proceeds outlined in the Offering Prospectus. To meet investor needs, Bond Issuers can hire Trustees to perform an oversight function over the Use of Proceeds over the lifetime of the Bond.
Through our affiliate entity, Campbell Corp. Trustees, we have a team devoted to providing independent Trustee Services. As Security Trustee and legal creditor of the issuer, we also perform a crucial during an Event of Default, instituting and participating in legal proceedings on behalf of the Bondholders.
We offer a full range of quality legal services and expertise, supported by sound business and legal knowledge.
Please Note: Our firm does not provide free legal advice, and a consultation may first be required in order to assess the merits of your matter.
