The CFBL programme is approved for the issue of individual Notes up to £500m in value, and typically in tranches of £5m to £10m.
The programme is wholesale and can be accessed by professional advisers, institutions, stockbrokers and other fund managers on behalf of their clients or qualified high net worth investors subscribing for a minimum of £100,000.
The Notes are required to be "Senior Secured" with asset backing. The investment policy follows this mandate with loans made to a variety of businesses with security in the form of a registered debenture and / or other physical security or personal guarantees when the underwriting process suggests such other security to be prudent.
The operating costs of the Secured Note Programme are funded by an interest rate differential between the coupon paid to investors and the interest rate charged to borrowers and from arrangement fees.
These costs include underwriting loan applications, involving corporate due diligence, analysis of business plans and evaluation of relevant business sectors, sensitivity analysis on financial projections and potential for re-financing.