Bonds
Listed bonds for
traditional fund
managers
The Bonds Account is designed for traditional fixed income fund managers or specialized investors looking for direct exposure in the form of standard securities to Microfinance institutions or Small Enterprise Banks. Symbiotics has opened the first Impact Investment Bond Issuance Platform for Institutional Investors and will support your investment process with online analytical tools, decision-making solutions and expert knowledge support.
We offer a set of advisory services tailored on your investment objectives. We will define together your positioning and focus which will bring competitive advantages to your investment strategy. Based on your eligibility criteria, this account will help facilitate your investment step by step through its standardized and proven investment process.
- 100+ Micro & SME banks
- Standard due diligence
- Third parties ratings
- Strong eligibility criteria
- Standard documentation
- Electronic settlement
- Monthly or daily valuation
- Standard electronic reporting
- Secondary market sales
Symbiotics has developed a comprehensive set of tools to analyse and provide adequate due diligence on microfinance investments, including a specific country risk analysis framework and a set of four core standards for the due diligence of micro and small enterprise finance institutions. The due diligence includes a desk review, a credit risk, a social responsibility rating and an on-going monthly monitoring process. To date, this thorough process has assisted more than 27 asset managers and institutional investors in more than 1'000 microfinance transactions.
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- Desk Review: Symbiotics’ investment analysts receive three years of audited and non-audited financial and operational information, both in paper format or electronically, in addition to all legal due diligence elements. The compilation and analysis of this information produces a ten to fifteen page Institution Desk Review report.
- Credit Risk: Pursuant to the Desk Review, Symbiotics’ investment analysts travel on-site to perform the credit risk analysis, through interviews and credit scorings. The methodology covers both past quantitative performance and a qualitative assessment of future risk, compiling 55 indicators. The output report is a two to three-page Credit Risk report.
- Social Responsibility: Following the desk review and credit risk analysis, Symbiotics’ investment analysts perform a Social Responsibility assessment based on key institutional components (governance, people, products, clients, community, environment), which produces a two to three-page output report on Social Responsibility.
- Monthly Monitor: Symbiotics’ investment analysts collect monthly key indicators on each financial institution monitored. The analysts then produce indicators, ratios, graphs and qualitative follow-up of key risk factors which are updated monthly, after having exchanged with the institution on key elements of change.
Symbiotics team periodically updates a global pipeline of investment opportunities, collecting, aggregating and filtering funding needs of first tier financial institutions in emerging markets that are looking for larger funding volumes and a broader investor base. Symbiotics negotiates and structures the transaction with the institution and serves as monitoring and servicing agent thereafter.
The investors need to identify themselves to receive bond issue pipeline and all related research on the borrower. Investors then confirm engagements via subscription forms and volumes are allocated proportionately at lowest clearing price. Each series of bonds are in the form of global notes, freely transferable and electronically settled through Clearstream/Euroclear. They are generally listed at the Luxembourg Stock Exchange and can therefore generate liquidity and market valuation. The underlying borrower is a first quality investment grade institution with funding needs typically too large for a direct loan (between 10 and 50M USD in average).
Symbiotics is in charge of surveillance process, available throughout the transaction period. Investors can also access periodic reporting on the borrower via Clearstream/Euroclear, or request further research directly to Symbiotics. We offer monthly bond valuation, with daily/weekly capacity on demand. The selling investor can freely transfer the bonds over the counter with identified purchasers. It can also contact Symbiotics to place a request amongst its investor clientele. We would go through a similar competitive process and place the bond at the best clearing price.
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