A 150 million EUR bond program with a minimum entry level of £10,000 listed on the Euronext GEM security market of the Irish Stock Exchange. It has an institutional grade board of non-executives who make up an independent committee to offer investor’s confidence that all Collateral Managers have had their Series Bonds signed off at the highest level. Audacia Capital PLC has a management team with extensive experience and knowledge of issuing Bonds, corporate governance and corporate finance.
The PLC is owned in Trust by the Share Trustee, DMS. The shares are held in trust for the benefit of an Irish charitable trust, making the structure bankruptcy remote and reducing potential conflicts of interest. The Directors are John Ferguson, Charles Goldsmith, Howard Chapman, Patrick Gibbons, Matthew Tracey, and Andrew Murphy.
A Collateral Obligor, also referred to as a Collateral Manager, or Series Owner is the owner(s) of the individual Bond Series that has been issued by Audacia Capital PLC. Each Bond Manager is responsible for the underlying activity, and performance of their own Bond. No Series is issued by Audacia Capital PLC unless the Collateral Obligor has undergone a diligence check and been approved independently by the Irish Stock Exchange.
Audacia Capital PLC does not deal directly with investors. Only Eligible Counterparties, usually an approved financial institution, can undertake the investment. Any approved professional investor can purchase and sell bonds which means they can also be traded across the market on the Irish Stock Exchange.
A bond is simply an I O U. The Collateral Manager(s) borrow investors money with a promise to pay it back at the end of the term of the Bond. Along the way the Collateral Manager will pay a rate of interest (also known as the Coupon). The Collateral Managers will use investors money, until they have to pay it back, to grow their business and reach a level where they no longer need to borrow.
Put simply the risks to the investor are that the Collateral Manager (the borrower) is unable to repay fully (or not at all) the funds they have borrowed.
initially the Board of Audacia will undertake a diligence process on the underlying business and the personnel running it. After this a business plan, two years audited accounts and full financial projections are required to satisfy the Irish Stock Exchange of the ability of the Bond owner to be able to service the debt (pay its interest) and to repay the debt at maturity.
Audacia is the Issuer only. Audacia has no involvement in the investment management of the underlying bond. Audacia undertakes no regulated activity and any investor should undertake their own research before investing in any corporate bond as there are inherent risks with all bonds.
A successful listing on the ISE will depend upon a number of factors but once a professional business plan has been presented, two years audited accounts submitted, and the document list for the diligence process has been supplied then a vanilla listing can often be achieved in 6 - 8 weeks.
Audacia are the Issuer only and cannot specify the variables that best suit your business. However we will work with you to determine the level of coupon (taking into account, cash retention, operating expenses, and marketing fees) which your business can sustain and which provides a realistic ability to repay investors.
All bonds issued by Audacia Capital pay a quarterly income to investors. The target rate is set by the underlying bond manager and is a target rate which normally will be the amount investors receive. In some cases, as per the conditions of the Bond and as set out in the Listing Particulars published on the Irish Stock Exchange, Audacia will exercise its right to make deductions from the interest to recoup amortised set up costs of the bond.
The bond manager can only deploy bondholder funds subject to satisfying the Board of the PLC and the Security Trustees (DMS Ireland) processes and criteria. This includes a demonstrable means to pay interest and recover loans, interest and fees.
Audacia requires full transparency with regards to how and where the Bond owners invest bond holders’ funds. Our administrators are Trustmoore who administer many $Billions globally for investors across numerous regulated jurisdictions. They have included within their criteria a quarterly update on performance, financial measurements, progress on projects and any other material updates so that the Board of Directors have a picture of the state of all Bonds issued.
Northern Trust International Banking Corporation is the custodian of the account within which bondholder funds are held before being on lent to the Obligor. Each account is segregated and there is no risk of cross contamination from any Bond issued by Audacia Capital PLC. Control of the accounts is with Trustmoore and not with the Board of Directors of the PLC or the Collateral Managers.
As explained in the listing particulars, strict criteria on the type and nature of loans is in place, so as to ensure there is sufficient returns and working capital to deal with coupon payments and repayment of the Bond sums. Each Bond owners business must be able to show that it can generate sufficient income to meet coupon obligations to investors along with the operational fees of the Bond. The criteria and underwriting process along with the 8% cash retention also helps to ensure there is enough equity accessible should a borrower default on a loan..
Investing in a Bond for a fixed term usually requires the investor to go the full term. Bonds issued by Audacia Capital (Ireland) are available to be traded, have a 30 day redemption period, and the issuer retains 8% of the Bonds funds in Cash to provide additional liquidity and security to investors. Investors should be made aware that exiting a Bond before the end of the term is not a right and there is no obligation to accept a redemption request before the maturity date. Should such a request be accepted, investors must be made aware that the investment will incur penalties which can be significant, especially in the early years.
Audacia Capital PLC is a company specifically set up to issue bonds under the Audacia Capital PLC bond program. It is owned within a charitable trust and is not used as a trading vehicle. Following formal approval with the Central Bank of Ireland in March 2018, Audacia Capital (Ireland) PLC has to prepare its Audited Accounts in each June and to have them completed by the May of each following year. Our Auditors are EisnerAmper and they undertake this audit process and ensure compliance with the Irish Company and International Accounting standards.
YES. Audacia Capital (Ireland) plc is a publicly listed company and as such must comply with Irish business law and is subject to a full annual audit of accounts, management policies, and safeguards and controls. Financial year ends June 30th each year with audits required to be filed by March of the following year. Audacia latest audit can be obtained upon request to the Executive Board.
Audacia Capital (Ireland) plc is the issuer only and does not manage the bonds. However as above we monitor the activity of each bond to ensure the funds are being used in accordance with the Bond mandate and the stated activity in the Bonds listing document. We can put investors in direct touch with the Bond owners but in general the Bond will always be valued at 1 unless there is any impairment. This means that £10,000 lent to the bond will always be worth £10,000 unless there is a declared impairment that affects the Bond's ability to repay its borrowings. Impairments, defaults or any material information that could affect an investors decision to buy or sell a listed security must be declared to the Exchange in a public notice.
The short answer is NO. Audacia is the Bond issuer and favouring any bond over another would be a conflict of interests. If you are reliant on Audacia for the fund raising as well as issuing the bond then we are not the right company for you.
However if you have some means of fund raising albeit limited, then through partner firms and long term relationships we can introduce you to independent fund raising and marketing firms who may be able to assist.
Audacia Capital (Ireland) plc is a rated issuer with most recent rating BBB+ with stable outlook. With the Issuer being investment grade rated and having a relationship with a European Ratings Agency a successfully listed bond can be submitted to obtain an individual Rating.