PUBLIC TRUST SERVICES
Sub-National Bonds
Sub-National Bonds are long-term debt instruments (five years and above) and statutorily require the appointment of a Bond Trustee to protect the interest of the Bondholders/Investors.
The role of a Bond Trustee in this instance includes but is not limited to management of the sinking fund which serves as security for the repayment of the principal and coupon (interest) in relation to the Bond, monitoring the projects/utilization of proceeds in the bond issuance exercise, effecting repayments of principal and coupon to bondholders until final maturity.
Who needs this?
Are you a State Government looking to raise funds for infrastructural development?
Do you need a Trustee to facilitate the process and boost stakeholders confidence?
This service might be for you!
BENEFITS
The benefits of the use of a Trustee in this process include the following:
- Our decades of experience offers our clients invaluable professional guidance into the Bond landscape.
- With our extensive knowledge of regulatory requirements, we are able to mitigate against the risk of legal and regulatory breaches in sub-national bond issuances.
- We monitor the use of Bond proceeds to ensure accountability and transparency in transactions.
- We provide detailed periodic reports to stakeholders and ensure that effective communication lines are open.
- We monitor compliance with covenants outlined in the transaction agreements including the provisions of applicable laws.
Talk to a trust advisor now
“To learn more about our public trust services for Sub-national bonds, please contact us today.”
