This post will inquire into Kaeva PLC bond to see the investment option’s terms and features.
Here, we’ll give some important updates regarding the bond program to shed light on what’s going to happen to investments now that interest payments weren’t made on time and liquidation proceedings were initiated against Kaeva Pty Ltd., the borrower.
Their recent default makes it essential to re-evaluate your entire portfolio in light of the fact that you may be exposed to further hidden risk.
If you are looking to invest as an expat or high-net-worth individual, which is what I specialize in, you can email me ([email protected]) or WhatsApp (+44-7393-450-837).
Investment management company Kaeva PLC provides investment opportunities to institutional investors. The firm was previously known under the BWI International Capital PLC and Index Ecogen PLC brands.
Kaeva PLC was formed as a business vehicle on Aug. 17, 2016 to sell listed securities, transferable in series, via the secured note program.
The company is now known as Kaeva Ltd after it registered as a private firm on October 2, 2023. For the purposes of this post, all instances of Kaeva PLC should be interpreted as Kaeva Ltd, and vice versa.
Kaeva PLC Bond Terms and Features
Kaeva PLC offered up to 1 billion pounds worth of senior secured notes with a fixed interest rate of 9% per annum paid bi-annually. Aside from British pounds, the bonds were sold in euro and US dollar denominations too.
Kaeva PLC bond, rolled out on February 8, 2019, matured on Feb. 8, 2024. The investment was offered as the first tranche of Kaeva PLC’s 5 billion pound secured medium term note program.
Net proceeds of the notes were earmarked for advance loans or acquisition of asset-backed investments.
Kaeva PLC bond security
The notes were secured by the projects they funded and given priority for repayment as they held “senior” position. They were listed for trading on Euronext Dublin and Frankfurt stock exchanges and were easy to buy and sell.
The Kaeva PLC bond can be held on various investment or savings vehicles like UCITS, ISA, SIPP, SSAS, QROPS, and Portfolio Bonds.
Pros and cons of senior secured fixed rate bond investments
Benefits of senior secured bonds
- They pay a set interest on a regular basis.
- These bonds are less likely to fail than unsecured assets because they are backed by assets.
- When things go wrong, bondholders get paid back before other creditors because of the “senior” status
Risks of senior secured bonds
- Because they are safer, senior secured bonds usually have lower returns vs riskier options like high-yield bonds or stocks.
- Interest rate changes can have a negative impact on the notes.
- The borrower might default on payments to the issuer, which in turn will badly affect interest payments to investors.
Kaeva PLC Bond Updates
On April 9, 2022 the secured fixed rate notes due 2024 were taken off the Frankfurt stock market by Kaeva PLC. The company took the notes off of Euronext Dublin’s list on February 6, 2023.
In 2023, the bond offering did not get any proceeds versus the 1.9 million pounds earned in the prior year.
For the year ended August 31, 2023, no coupon payments were disbursed because Kaeva was not paid the sums that were due from Kaeva Pty Ltd (the borrower).
The liquidation process for Kaeva Pty began on July 9, 2023. The Liquidator’s appointment was a default event for the secured medium term note program, which meant that they became due and payable right away.
Due to the lack of substantial assets recovered throughout the liquidation process, Kaeva Ltd has informed its creditors and investors that they would not be receiving any payments.
Meanwhile, Kaeva Ltd continues as a going concern.
On March 14, 2024, a meeting of the informal noteholders was scheduled to discuss issues related to the bond issuance.
The stated purpose of the meeting was to address the concerns of noteholders regarding the delayed bond payments and determine the next steps to be taken. Noteholders will need to convene once more to cast their votes on any proposed changes to the deal’s conditions.
Final Thoughts on Kaeva PLC Bond Investments
Bond investments carry dangers, such as default and capital loss, so it’s important for investors to research bond issuers’ creditworthiness. Fortunately, some of these dangers can be lessened with careful planning and diversification plus the help of a financial advisor.
Bondholders risk heavy losses as a result of the borrower’s suspension of interest payments and subsequent liquidation.
Kaeva Pty.’s assets may not be enough to pay all of their debts, even though bondholders have priority claims. Bondholders run the risk of losing all of their money or receiving just a small portion of it in such a scenario.
Through the liquidation process, bondholders may have to pursue legal action to recoup their losses. Doing so can require a significant investment of time and money.
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