CLN
Guernsey PCC - Luxembourg Securitisation Vehicle - Jersey PCC - Irish Section 110 Company - Swiss Issuer
Credit Linked Notes
Transform private debt into a regulated, bankable security. Give investors efficient access to private credit while simplifying the process for borrowers and eliminating loan documentation and KYC overhead for end investors.
Overview
What it is and how it works.
Credit Linked Notes transform traditionally illiquid private debt opportunities into a regulated, bankable security. The structure gives institutional and professional investors efficient access to the credit market while easing the operational burden for borrowers. Only one counterparty faces the borrower (the issuer), and end investors have neither loan documentation nor KYC overhead.
Issued via Guernsey PCC, Luxembourg Securitisation Vehicle, Irish SPV or a Swiss issuer, depending on the borrowers' needs and withholding tax implications.
Structure & features
How the CLN is built.
- Segregated and ringfenced issuance
- Chose between Guernsey or Jersey protected cell, Luxembourg compartment, Irish Section 110 SPV or Swiss Issuer.
- CH / FL / XS-ISIN, private placement
- Settled through Clearstream / Euroclear.
- Purchased through existing custodian/private bank
- NAV on dirty price, reported to SIX
- Liquidity defined by the manager
- Unlimited number of investors
- Institutional / Professional only, minimum investment of CHF / USD / € 10,000
- Listing + quotation
- Vienna Stock Exchange (3rd market) listing and Bloomberg quotation available.
Why it works
Main advantages.
Bankable product, no paperwork required
Neither signed Loan Agreement, nor onboarding of the investor required, as they buy the CLN via their bank.
Single counterparty for the borrower
Only one party faces the borrower — the segregated cell — simplifying loan documentation.
Manager's margin baked into the structure
The interest-rate spread between the loan to the borrower and the coupon paid to investors becomes the manager's margin.
Secondary market mechanics built in
Liquidity creation and secondary transactions are supported.
Aggregate co-investments
Family offices and IAMs can co-invest cleanly through one bookable instrument.
CLN whitepapers
Read the deep-dives.
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