Commercial Terms

The level of loan interest set by CFBL from its lending is thus at a level required to support the coupon obligations after costs. CFBL lending rates are sensitive to the marketplace in general for providing asset backed finance, which are typically between 9% and 15% per annum. At these rates there is a sufficient differential between the interest received from borrowers and CFBL's contractual obligations to pay the coupon.

As Notes are issued in Series, each with specific terms, the level of coupon offered on new Series issued can be adjusted within the rules of the programme upwards or downwards depending on the interest rate environments in the UK and further afield.

It is anticipated that Notes are offered with a market competitive coupon in the range of 6% to 8% and so in the current low interest rate environment offer an opportunity for professional investors to secure yield with underlying asset security.

Each Series issued is admitted to the Global Exchange Market of the Irish Stock Exchange where full details can be viewed. It is enabled for electronic clearing and settlement through CREST, Euroclear and Clearstream so the Directors of CFBL can raise capital within the UK and internationally.

 

Key point summary:

  • £500m secured note programme
  • Bonds issued from programme in individual Series
  • Each Series terms reflect prevailing market conditions
  • Programme and each Series approved by Irish Stock Exchange and listed on its Global Exchange Market
  • Enabled on Crest and Euroclear / Clearstream
  • Secondary market facilitated on matched bargain basis
  • Each series valued at least weekly with price feeds and market news available from Bloomberg and Financial Express
  • Bond invests in the debt of not less than five companies per series
  • ABL / P2P major growth sector due to bank lending restrictions
  • Lending is secured by registered debenture or what additional specific security is appropriate