Mikro Kapital High Yielding Bonds
Mikro Kapital Sarl is a Luxembourg registered company, supervised by the Luxembourg Central Bank. It has two SPVs Mikro Fund and Alternative Fund, investing on different emerging markets by facilitating micro credits for investment purposes only. All loans are secured with collaterals and the credit process follows that of the European Bank for Reconstruction and Development (EBRD). Mikro Kapital further holds a number of certificates for social responsibility and sustainability.
The legal and regulatory set up of both Mikro Fund and Alternative Fund henceforth “the Funds” is that of SPVs which issue European Medium Term Note (EMTNs) i.e. bonds and have the legal form FCP – Fonds Commun de Placement. In simple words it is a securitisation vehicle and not an investment fund. All assets of the Funds belong to the Funds and are there to secure the debt that belongs to the Funds only. The management company is not liable for any of the liabilities of the fund. This is a basic concept of the securitisation law of 2004 of Luxembourg, under which the company has been created.
The Funds invest in their own network of regional branches named “Mikro Kapital” and in third parties, such as local small financial institutions, leasing companies, banks or credit cooperatives. Mikro and Alternative Fund collect financial resources from European institutional and private investors by issuing EMTNs denominated in EUR, USD, CHF and GBP with maturities of 24, 36 and 60 months. Ultimate parent of all subsidiaries are Mikro Kapital Sarl Luxembourg.
Our unique competitive advantages which have led to a remarkable Risk/Reward:
- The average credit losses, over the past 10 years, have been below 1%
- All loans are fully collateralised 120/130% of the disbursed loan and all currency risk is hedged.
- The investor currently enjoys annual interest payments of up to 8.5% (60 months EUR as per August, 2018), depending on maturity and currency. Coupons are generally set quarterly. However, they can also be set monthly, semi-annually or annually upon request.
- Further the capital ratio on a consolidated level is set to a minimum of 20% by management regulation, which is above the requirements set by Basel III for regulated Financial Institutions. This gives a good liquidity.
- Important to point out is, that all branches are regulated by the Central Banks of the respective countries where they are legally registered and operate and that all of the activities of the subsidiaries are audited and consolidated under the Luxembourg legal entity (Mikro Kapital Sarl).
- Low correlation with macro-economic factors due to the distribution over a wide range of industries and geographical areas.
