Bonds with security at their core
Insured for your protection
We know you’ve worked hard for your money and you want peace of mind that your investments are protected.
That’s why our bonds will be underwritten by a leading insurer. This insurance policy guarantees the return of your capital invested (the initial investment value) at the bond’s maturity regardless of market fluctuations or the performance of the underlying company in which funds are deployed.
Investors should note that this insurance covers the initial capital invested only (the principal) and not the projected returns (income coupons).
Additional protection with embedded security measures
In addition to our bonds being insured, we only raise funds on behalf of businesses that meet our lending criteria, which includes embedded security measures.
In the case of our upcoming M12 Global Bond, this will be in the form of assets e.g. property and guarantees provided by the underlying borrower. It must be possible for this security to be passed back to the bond trustee (a specialist independent trustee company) to be held for the benefit of the bond holder.
How this impacts you as a bond holder
Bond holders would have the right to the security offered by the borrower in the unlikely event of a double default by both the underlying company and the company insuring the bond.
This means if the insurance company were to fail, as a primary measure, the security in place will act as a secondary measure to provide some capital protection. Investors should note that it may take time to liquidate an asset (or assets) which may delay capital being returned when such measures are adopted.
Specialist Independent Trustee Company Appointment
These trustee companies are appointed to essentially hold assets for the benefit of investors as bond holders, in the event there is a default. They do not hold any assets on behalf of the bond issuer.
Bond approvals for listing on the London Stock Exchange
All our bonds must be reviewed to meet particular standards as part of being listed on the London Stock Exchange. The Financial Conduct Authority (FCA) is the authorised Listing Authority for the London Stock Exchange.
Please note, neither the FCA nor the London Stock Exchange guarantee the performance of a listed bond (or other listed assets).
The information contained in this section has been designed to give investors an overview of the measures being taken to help mitigate the loss of capital. Investors are reminded that performance of an investment cannot be guaranteed.
As well as the above, investors are asked to read through our Key Benefits and Risks section before investing.