Tag: attract investors

October 10, 2015 3:54 pm

…with access to the secondary market

P2P Lending Companies wishing to raise funds from investors by offering an attractive return and at the same time speed up the disbursement of loans to their clients, are now in a position to issue and list their corporate bonds on EU stock markets under simplified listing rules and create a secondary market in their debt instruments.

Issuers can choose from any one of the jurisdictions that we cover in the EU including Austria, Cyprus and Ireland.

MAIN ADVANTAGES FOR ISSUERS

  • Raise funds from investors via a listed product
  • Securitize the debt
  • Tap institutional investors who by charter are allowed to invest only in listed products
  • Offer multiple bonds in various category of risk
  • Increase your leverage and lending power
  • Fasten the time it takes to lend
  • Provide exit route to your investors via secondary market trading
  • Manage the bond sales via private placement through your platform
  • Default risk remains with bond investors, not Issuer
  • Recoup listing costs by charging Administration, Management and even Performance fees KEY CHARACTERISTICS
    • Established P2P Lenders, Startups or SPVs without prior history can list their bonds
    • A bond listing on an EU stock exchange allows the Issuer regulatory approval to sell the bonds and raise money from investors across the EU28
  • Listing in major currencies including Sterling pound (GBP)
    • Issuer is under no obligation to provide liquidity
    • Listing is secured on average in 3 weeks (provided you are ready with the required documents)
    • Depository, Clearing and settlement is available through Clearstream/Euroclear and or UK’s CREST
    • Listing costs are significantly lower TYPES OF BONDS
    • Traditional bonds with fixed coupon
    • Floating rate bonds tied to LIBOR or EURIBOR
    • Zero coupon bonds
    • Performance linked bonds, whose value is tied to the performance of the underlying asset.

SPECIFICS
• Minimum size at least €200,000 or more per bond listing

  • Registered office of Issuer in an EEC country
  • All Directors must provide brief CVs and basic KYC
  • Issuer must state purpose of listing and explain how the proceeds of the bond issue will be used
  • A comprehensive business plan must be submitted with 3 year financial projections prepared based on IFRS including Profit & Loss Account, Cash Flow statement, Balance Sheet, financial notes and Sensitivity Analysis with 5% to 10% deviation from business plan goals
  • Minimum denomination of bonds should be €10.000 or equivalent
  • Consumer Credit firms based in the UK wishing to list their bonds need to be supervised by FCA

SPECIAL OFFER

Issuers who sign a binding agreement until 31 December 2015 will be eligible to take advantage of our Special Offer of GBP 12.000 Listing Agent fees compared to our usual price of GBP 35.000.

The price excludes stock exchange and custodian fees.

ABOUT EURIVEX

Eurivex Ltd, is an EU investment firm regulated by Cyprus Securities & Exchange Commission (CySEC license number 114/10).

We have many years of experience in advising all categories of companies in connection with bond and share issues. Our clients include large and medium size corporations, institutional clients, investment managers and professional funds having successfully done 30 listings on recognized EU exchanges.

Secondary Market

As a fully licensed regulated EU investment firm, Eurivex is a position to offer our clients access to trading in the secondary market of Issuer bonds or shares that have listed their financial instruments on recognized EU stock exchanges of Ireland, Austria or Cyprus.

Client orders are either matched internally or sent for direct trading to counterparties.

Eurivex is licensed to offer safe-custody through which we act as Custodian for client assets.

As a European investment firm, Eurivex Ltd. operates in full compliance with the regulations of Markets in Financial Instruments Directive (MiFID). Eurivex is also a member of the Investor Compensation Fund and by law client money and custody of financial instruments are segregated and maintained in top Tier 1 banks and with approved Depositories or Registrars.

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May 13, 2014 5:42 pm

 

A detailed and carefuly prepared business plan is critical to the success of any business which is looking to attract investors and raise funds. But the same business plan can also be used to convince management as to whether their aspirations and assumptions are feasible and achievable.

With banks changing their lending model away from accepting business owners from qualifying for a loan by the pledging of property to an environment whereby management has to prove to the bank that their business model is successful in order to qualify for a loan, the preparation of a complete business plan becomes an essential tool to success.

Every business plan depends on the nature, complexity and target audience for which it is prepared.

If the plan is to attract a limited number of investors who already understand the business, then it can be very specific and to the point, concentrating more on financial projections, cash flow, investment returns and contingency plans.

Similarly, if the product or service is not complex, then the plan does not need to be very detailed such as explaining the setting up of a café. But if the proposed venture will deal in complicated instruments or an industry which is new to the general public, then it is advisable for extensive description and explanations together with charts and other tools to make the plan easily understood and presentable.

Every business plan should provide an Executive Summary, description about the company, about management including CV and previous success of managers, explanations about the product or service, what is your key advantage, mission and objectives, analysis of the industry, market in which the company will be active with extensive analysis of company strengths, opportunities, competition and possible weaknesses.

A business plan needs also to be accompanied by very detailed and extensive financial projections with explanations on how particular sales forecasts are made, the gross and net profit, profit & loss account, balance sheet, cash flow and sensitivity analysis.

In addition to the above, a business plan needs to include details about the marketing and sales plans and if the company intends to raise funds from investors and the projected returns promised.

If the objective of the business plan is to raise funds, then the success of the fundraising will also depend on the:

  • Quality of the issuer
  • History and in which industry it is involved
  • The Company’s previous track record, profitability and balance sheet size
  • How much are the existing owners contributing into the project
  • Where and how the proceeds of the funds will be used
  • What is the return objectives
  • The management team and members of the Board
  • What contingency plans the Company has in the event of adverse market conditions

Exit route

A business plan that in addition to all the above also offers an exit route for investors is likely to be more successful in reaching its objective of raising funds from investors.

Many investors have no problem to invest in businesses and assume a share of the risk against being compensated with a higher return, but almost all investors want to know what kind of exit options management is providing to them.

Nobody wants to be stuck in an investment forever.

The most effective exit route is to form a public company and list the shares on the Emerging Companies Market of the Cyprus Stock Exchange under simplified rules and listing conditions. Eurivex Ltd., a regulated investment firm and approved Nominated Advisor for listings on the ECM of the CSE has helped start-ups list their shares on this market in record time and at very reasonable fees, which is ideal for any start-up or even established businesses.

Alternatively, companies with at least one year history may also consider listing their shares on the MTF Market of the Vienna Stock Exchange under simplified rules and at very reasonable fees. Eurivex is authorised by Vienna Stock Exchange to act as Listing Agent for listing of shares, bonds or funds on the MTF Market and where needed can act as Capital Market Coach for listings on the secondary market.

The listed option allows the Company or the Issuer to give a buyback pledge that in 2-3 years time it will buy-back the shares at a specific price, thus giving added assurance to would-be investors that there is a credible plan allowing them to exit out of the investment if they so wish and after they achieve a specific return.

 

[email protected]

(Shavasb Bohdjalian is an approved Investment Advisor and CEO of Eurivex Ltd., a Cyprus Investment Firm, authorized and regulated by CySEC, license #114/10. Eurivex is an approved Nominated Adviser for listings on the Emerging Companies Market of the Cyprus Stock Exchange and as Listing Agent for listings on the MTF Market of the Vienna Stock Exchange. The views expressed above are personal and do not bind the company and are subject to change without notice)

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Disclaimer & Regulatory information
Eurivex Ltd is a Cyprus Investment Firm, authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC), License number 114/10. Company Reg. HE 255430. Headquartered and based in Cyprus, member of EU.

Risk warning: Investing in financial instruments and other derivatives involves a high degree of risk and may not be suitable to all investors. Trading in such financial instruments can result in both an increase and decrease in capital. If you invest through Eurivex Ltd, the value of investments may go down and your capital will be at risk. Eurivex Ltd operates a secondary market but there is no guarantee that all buy/sell orders will be completed at the desired prices and there is a risk that an order may not be completed in the Eurivex secondary market if there is no matching order. There is no guarantee that you will be able to exit early by selling your investment. Eurivex Ltd does not provide investment, tax or legal advice. If you are unsure about the suitability of an investment, you should speak to a financial adviser. Please refer to our Risk Warning available on our web site for further information.