Acting as pledgee on behalf of the bondholders
Control of debit transactions on accounts
Signing agreements that ensure the integrity of the transaction on behalf of the bondholders
Monitoring financial and behavioral covenants
Representative of holders of structured and concession bonds
Legal Capital Investor Services, which has vast experience in working with bonds on the Russian debt market, provides services as a representative of holders of structured and concession bonds.Concession bonds include:
- bonds of the concessionaire, the proceeds from the placement of which are used to finance the implementation of the concession agreement;
- bonds of the concessionaire secured by a pledge of rights of claim under the concession agreement and giving the bondholders the right to be a party to the express agreement.
Unique air defense capabilities when working with concession bonds
Air defense is a “civilized” instrument of interaction between investors and issuers.
In issues of concession and structured bonds, PVO performs expanded functionality compared to simple issues, namely: it acts as a pledgee (including the implementation of an out-of-court procedure for foreclosing on the subject of pledge), carefully controls debit transactions on accounts, signs agreements that ensure the integrity of the transaction , on behalf of bondholders, and oversees financial and behavioral covenants.This helps ensure:
- maximum flexibility in tool structuring
- the ability to grant bondholders equal rights with other senior creditors
- targeted nature of the use of funds
- the possibility of obtaining an increased rating for the instrument
Thus, the participation of an experienced and qualified representative of bondholders in the issue of bonds makes it possible to effectively sell full-fledged concession bonds.
We would like to remind you that from July 1, 2016, the presence of a PVO is mandatory for bond issues with collateral, including a guarantee.