The M12 Global Bond is intended to provide investors with predictable monthly income and competitive returns with the added benefit of liquidity of the London Stock Exchange, and where the return of the capital invested (the initial investment value) guaranteed upon the maturity date through an insurer.
Key benefits include:
Fixed monthly income at an attractive rate
The M12 Global Bond will offer returns that are higher than the Bank of England’s cash rate with interest paid monthly into a nominated bank account until the bond matures.
Guaranteed return of principal
The Bond will be 100% principle protected by a leading insurer. This insurance policy guarantees the return of your capital at the bond maturity regardless of market fluctuations or in the unlikely event of any underlying loans defaulting.
Asset-backed for added security
In addition to being fully insured, the loans that are issued by our partner businesses with the funding raised via the bond are subject to security measure, which includes assets-backed protection and guarantees.
Liquidity on a Tradable Exchange
The Bond will be listed and tradable on the London Stock Exchange’s Order Book for Retail Bonds (ORB) – a dedicated market for retail bond trading. This means that any time during the life of the bond investors may be able to sell their investment (within market hours and in normal market conditions) on the open market through a licensed stockbroker.
Being listed means the bonds will be subject to the London Stock Exchange’s standards of market supervision and oversight.
Measures are being put in place to preserve investors capital through insurance covering the capital being deployed, however there can be no guarantee that these will preserve all capital invested.
Assets may be held as security in the event of a default of the underlying asset(s) and the insurance company, however there can be no guarantee that the liquidation of those assets will sufficiently cover the capital deployed, and therefore there is a risk that not all capital could be retrieved in such an event.
Income (Monthly Coupon)
The income generation is dependent on the performance of the underlying assets for which the funds from investors will be deployed in accordance with the bond’s investment strategy.
If an underlying asset is unable to afford the payments back as required, investors may not receive the income (monthly coupon), impacting the overall returns of the investment.
No FSCS protection on the investment
Investors should be aware that there is no FSCS (Financial Services Compensation Scheme) protection available on any underlying investments performance. Therefore, if the bond does not perform as expected, investors are unable to claim for any loss through the FSCS or through any other body.
Investors should ensure they seek independent financial advice to assist in understanding whether the investment product is suitable to meet their investment objectives, and is within their risk appetite.
M12 Global is not responsible for assessing whether a bond is suitable for an investor.
Special Purpose Vehicle (“SPV”)
Investors will become a bond holder of an SPV, which has been set-up specifically to facilitate the investment opportunity, and provide capital by way of a corporate bond to a corporate entity. The SPV will have its own costs and fees to pay as a standalone corporate entity.
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