Debt Capital Markets and Debt Equity Markets
Syndicated, Bi-lateral and other Loan Transactions
Pacific Trustees is an experienced trustee, the most suited to provide Security Agent and administrative services to both for financial market including Debt Capital Markets and Debt Equity Markets to avoid litigation arising from those transactions (ie: involving bilateral loan and other types of loans) involving Arrangers, Borrowers and Lenders.
Pacific Trustees Group is able to provide independent trustee and security agent services, with experience of complex amendment, restructuring and enforcement processes. We have acted in respect of a broad range of asset classes including: plain vanilla ABS, asset finance, repacks, distressed assets, high yield bonds, project finance, securitisations, Collateral Loan Obligation (CLO), Non-Performing Loan (NPL), corporate bonds, rentals, Automobile Loan (Hire Purchase), Islamic Capital Market and Sukuk.
The role of Trustee and Security Trustee/Agent primarily includes:
- To constantly monitor industry and market developments in the Private Debt Securities (PDS) business to keep up with regulatory changes as well as market specific practices.
- To pro-actively involve and participate in pre-issuance documentation meetings by providing the proper and correct feedback and comments to parties.
- To continually develop and enhanced systems (both operationally and IT) and to fortify human resource management and planning to meet modern stringent regulatory and legal requirements.
- To engage and provide positive feedback loop to both regulators and industry players/participants to enhance existing Bond structures.
- To persistently engage issuers to ensure proper monitoring of compliance with covenants, terms and conditions of the Trust Deed.
- To provide or facilitate obtaining ‘win-win’ solutions for both issuers and holders for non-compliance, breach or Event of Default (EOD) conditions.
- To ensure that all securities to be held by the Bond Trustee are perfected at the time and in the manner prescribed in the relevant PDS structures.
- Issuer appoints Trustee (Bond Trustee/Security Trustee) & Facility Agent for the bonds issuance programme.
- Issuer opens the Designated Account and charged to the Security Trustee. Detailed below are some of the examples of Designated Account:-
i. Finance Service Reserve Account
ii. Disbursement Account
iii. Proceed Account
iv. Operation Account
Security Trustee will solely operates the Designated Account under item (i) to (iii), while the Operation Account will be solely operated by the Issuer.
When Event of Default is declared Operations Account will be operated by the Security Trustee.
- Issuer issues bond to the bondholders.
3a)Facility Agent updates the details of the issuance in BNM Fast website.
3b)The bonds are credited into the CDS account maintained by the Bondholder with ADI.
- The bond proceeds are remitted to the Disbursement Account solely operated by the Security Trustee.
- The Security Trustee release the funds in accordance with the utilization proceed schedule in the Trust Deed (payment of expenses in relation to the issuance, built up sum to FSRA, release to Operation Account).
- The Security Trustee remits the coupon/redemption payment to Facility Agent. Facility Agent remits the coupon/redemption payment to BNM Account.