One innovative way that Quay Advisors has raised money for clients is by issuing a bond.
If a company has assets but does not want to release equity to outside investors, Quay Advisors can arrange for a bond to be issued (in Luxembourg, or on other recognised exchanges) in order to raise funds, secured against the assets. The bond will have an ISIN number, be graded by a recognised ratings agency and this grade will determine the interest rate payable on the bond. The usual term for these bonds is 5 to 10 years.
There are billions of dollars parked in pension funds and with institutional investors who are keen to invest in secured debt instruments with a predictable yield. The investor appetite for these bonds is immense as a consequence of the worldwide low interest rate environment.
Quay Advisors can provide a complete service to arrange these bonds for clients. It is a particularly useful method of raising funds where significant property assets are owned, because day-to-day control of the assets can be retained by the owner.