i. Consortium Finance (Security Trusteeship)
A Security Trustee is appointed when Lenders/Financiers grant facilities to a Borrower on a multiple arrangement or syndicated basis usually on varying terms and conditions (spelt out in the Offer Letters), either for expansion purpose or to meet the costs of operation. An institution can also consolidate its assets in a Debenture arrangement to determine the market value and make it seamless for future borrowing/funding.
With a capacity to support diverse interests, UTL Trust Management Services Limited’s role as Security Trustee of complex multi-dimensional security arrangements entails full service support to the stream of Lenders/Borrowers towards maximizing loanable amounts against assets offered by a Borrower as collateral for the loans.
With a capacity to support diverse interests, UTL Trust Management Services Limited’s role as Security Trustee of complex multi-dimensional security arrangements entails full service support to the stream of Lenders/Borrowers towards maximizing loanable amounts against assets offered by a Borrower as collateral for the loans.
Additional role include:
- Holding security over charged assets on behalf of secured parties.
- Acting as an independent party in the transaction.
- Working with parties, individually and or collectively including relevant third parties.
- Reviewing and effecting amendments on the Transaction Documents.
- Organizing meetings on behalf of parties.
- Attending to requests of the parties.
- Releasing from, or accepting additional assets into the security arrangement.
- Enforcing security in the event of default.
Additionally, we also provide the following services:
- Conceptualizing, structuring and supervising the execution of relevant security documents with optimum efficiency, due diligence and compliance with all the terms and conditions of the facility documents.
- Facilitating and coordinating Informational interchanges as required amongst the loan parties.
- With the complements of a vibrant legal team, liaising with the lead Lender and Lender’s legal counsel on drafting, finalizing and execution of security documents.
- Providing prompt support and information to the Lenders on any matter relating to the covenants or terms/ conditions of the loan and security.
- Leading the Borrowers and Lenders towards the overall coordination and smooth closure of the financial project.
ii. Corporate Bond
A Corporate Bond is a long-term debt instrument with maturity of at least three to five years or above, issued by an Institution to raise financing for a variety of reasons such as expansion of business, funding of operations, re-financing of existing short-term loans among others.
Accessing the debt segment of the Capital Market requires a Corporate Trustee that can navigate the complex regiment of regulatory and documentary requirements of the corporate bond issuance process. As experienced Trustees of diverse Corporate Bonds, we will work with your organization to access the bond market and meet your obligations by doing the following:
- Protecting/managing the Bond Holders interests;
- Managing the sinking fund, if any;
- Monitoring and ensuring compliance with the Trust Deed;
- Providing periodic reports to the Issuer and Regulator;
- Convening Bond Holders Meetings;
- Oversight role on ensuring/monitoring repayment of principal and interest;
- Computing the Repayment Adequacy;
- Protecting/managing the Bond Holders interests;
- Managing the sinking fund, if any;
- Monitoring and ensuring compliance with the Trust Deed;
- Providing periodic reports to the Issuer and Regulator;
- Convening Bond Holders Meetings;
- Oversight role on ensuring/monitoring repayment of principal and interest.
iii. Share Warehousing
A Corporate Organization may desire to allot a percentage of its shares to certain employees/beneficiaries. A Trustee is usually appointed to hold the interest in the shares so allotted for the benefit of the identified beneficiaries. The shares allotted rank pari passu in all respect and identical with all other shares in the capital of the Company.
The Company will deliver to the Trustee a Share Certificate constituting valid title to the shares so transferred and avail the Trustee, evidence that all corporate formalities in connection with the allotment of such shares have been complied with.
The modalities for the distribution of dividends/bonuses would be incorporated in the appropriate Trust Deed as well as the number of units of shares allocated to the respective identified beneficiaries. We have hands-on experience in managing share warehousing arrangements and share pledges to the benefit and satisfaction of all the Stakeholders.
The Company will deliver to the Trustee a Share Certificate constituting valid title to the shares so transferred and avails the Trustee, evidence that all corporate formalities in connection with the allotment of such shares have been complied with.
The modalities for the distribution of dividends/bonuses would be incorporated in the appropriate Trust Deed as well as the number of units of shares allocated to the respective identified beneficiaries. We have hands-on experience in managing share warehousing arrangements and share pledges to the benefit and satisfaction of all the Stakeholders.
Our role in this instance would be:
- Holding the shares on behalf of the designated beneficiaries.
- Ensuring the appropriate modalities for the administration, custody of shares and distribution of dividends.
- Issuing of Letters of Allotment to each beneficiary evidencing the respective holdings.
- Issuing of disengagement notice to beneficiary (ies) exiting the arrangement.
- Collecting all dividends and other distributions accruing in respect of the Trust.
- Paying dividends to the beneficiaries’ accounts.
- Providing annual statement of accounts/reports on each beneficiary.
- Liaising with relevant Governmental Agencies to ensure compliance with applicable regulations.
- Providing periodic reports on the administration and management of the Scheme.
iv. Share Pledge Trustee
Share pledge is the use of listed shares as collateral to secure a facility received by a person whether corporate or individual. It could also be used as a security for a deferred payment when a corporate entity/individual is unable to pay or complete payment for a service rendered to such an individual/entity. The listed shares applied in transactions of this nature are essentially such shares that have high capitalization.
A Share Pledge Agreement which is usually executed between the owner of the pledged shares, the Trustee and the lender does not transfer title in the Shares to the lender but rather creates a charge or lien over the pledged shares which is registered against the particular pledged shares.
The share pledge Scheme is such that the pledgor (borrower) secures the interest of the pledgee (lender) by executing a number of documents in favour of the Trustee on behalf of the pledgee while also providing the pledgee with documents which can be activated by the pledgee in a situation of default.
Our role as Trustee:
- Custody of all executed documents and executable documents.
- Ensuring that the units of shares provided as security are valuable and well-suited for securing the facility advance.
- We will ensure continual valuation of the shares and in addition generate periodic reports for the Lender(s).
- Ensuring the appropriate modalities for the administration of the Scheme.
- Listed shares will be monitored and periodic reports sent to the Lender(s).
- In cases where defaults occur, we may sell shares on behalf of the Lender(s) using appointed broking entities.
- Liaising with relevant Agencies to ensure compliance with applicable regulations.
- Providing periodic reports on the administration and management of the Scheme.
- Ensuring the effective discharge of the Scheme when all obligations are fulfilled by the pledgor.