Borrowers

Discover the benefits eppf brings to borrowers.

Blazing fast

Accessing bond markets takes for first time borrowers a couple of weeks instead of months

Cost efficient

Before eppf, issuance of bonds was 500% more expensive, equalling an 80% saving to borrowers

Extreme flexibility

Issue in any currency, maturity, interest rate structure, volume, frequency, listed/unlisted

pay-as-you-print

Fees only accrue when bonds are actually issued, reducing running considerably

Time-to-market

Once set-up, borrowers can access markets within days (T+1) and issue strategically

Turnkey solution

Borrowers literally sign 1 agreement and are ready to issue, no more regulatory hassle

Investors

Discover the benefits eppf brings to investors.

standardised documentation

All eppf bonds share the same standard documentation allowing to focus on credit

centralised investor data hub

Borrowers under eppf must supply information into a central data hub

Improved liquidity

Standardised, machine readable documentation means easier trading which improves liquidity

quality

eppf has stringent quality controls implemented which give a certain base assurance

new issuer universe

Low entry barriers means that more borrowers can tap capital markets

cost efficient

Less due diligence costs, faster investment process, less need for discovery services

Banks

Discover the benefits eppf brings to banks.

new bond clients

Clients that previously wouldn’t have thought of accessing bond markets can now do so

cost savings

eppf helps banks with everything between origination and placement

new product

Banks are able to offer clients a new product which offers EMTN flexibility at the costs of a loan

new market

New and existing issuers accessing a standardised market lead to a whole new segment

more business

Despite regulatory balance sheet constraints banks can offer clients all they need

lean process

eppf is fully automated and digitalised making transactions very straightforward

Dark green and social bonds – the end of greenwashing

Green and social Bonds do not include covenants and are prone to “green washing”. Due to eppf’s unique structure, it can provide protection to investors, by making covenants binding and monitoring investments with clearly defined escalation steps. At the same time this protects issuers from frivolous law suits based on green or social covenants. With this structure, green and social bonds become “dark green” and – due to their legal differentiation – can be considered an asset class separate from the normal senior (un)secured curve of the issuer crystallising even better a green premium (“greenium”).

Quality Assurance

Quality assurance is the main issue for eppf to function and be successful but quality does not mean investment-grade corporates only​.

eppf is designed to require certain quality checks

  • only major banks which have a reputation to lose
  • strong directors with professional experience and reputation
  • high quality documentation
  • only high quality law firms drafting the disclosure
  • audited accounts by PWC, both at general eppf level as well as at compartment level
  • thorough due diligence and credit monitoring, listing disclosure
  • rating only from quality agencies: in particular, big 4 rating agencies (S&P, Moody’s, Fitch, DBRS), Euler Hermes
  • full due diligence, e.g. by PWC
  • independent investor reports, credit checks​

Criteria regarding the corporate agreed by the banks

  • rating not below BB flat (implied or actual rating)
  • recommendation of turn-over of at least EUR 100m or equivalent at the beginning, no hard cap
  • financial data availability of at least 3 years, spin-off exemption
  • no defaults in past 3 years
  • Bundesbank or similar commercial rating to be disclosed to directors of eppf
  • corporate to commit to send any communication sent to other lenders also to eppf (information covenant)
  • standard covenants: cross default, negative pledge, change of control
  • set of covenants required at BB+ and BB levels
  • corporate to commit to at least annual management calls with investors
  • corporate to commit to due diligence calls with investors and banks pre-issuance

Documentation

eppf has developed a standardised documentation over more than four years with the help of leading lawyers and law firms, banks, regulators, investors and other entities. The documentation is continously updated and adapted to legal and regulatory changes taking away the costs of "technical updates" for Borrowers. The documentation will allow Borrowers to have a readily available instrument, a debt issuance programme, under German and English law (French law and additional modules are in development) which can be adapted by simply ticking the right boxes and deployed immediately and allows for recurring issuance.

Going Skyward

  • Borrower and investor guides and manuals
  • Joining agreements for Borrowers and Banks
  • Due diligence questionnaires
  • Sample term-sheet
  • Sample confidentiality agreement (NDA)
  • Transaction timetables
  • Sample Borrower description
  • Covenant handbook (in development)
  • All documents are owned by eppf and subject to intellectual property rights

Groundbreaking Innovation

  • for the first time Borrowers are able to issue cleared German law registered notes (Namensschuldverschreibungen, NSVs)​
  • a documentation that allows to switch between applicable laws by the tick of a box
  • Borrowers can adapt the documentation for their needs by simply ticking the right boxes, for example in covenants like cross default and negitive pledge
  • all freely convertible currencies are available for issuance plus Renminbi
  • modular documentary architecture that allows to include additional modules for different uses in an easy way, e.g. French law module (in development) or covenant handbook (in development)
  • the first and market driven practical implementation of the Capital Markets Union
  • due to highly efficient work-flow processes, the documentation required for a notes issuance can be done in very short time, usually within a day
  • electronic links to the relevant clearing systems allow for settlement in T+1
  • subject to fulfilment of general criteria, the documentation allows for central bank collateral eligibility as well as access to the relevant bond purchase programmes of different central banks

Corporate Governance and Transparency

  • as a vehicle subject to the Luxembourg Securitisation Law and expected to be regulated eppf has implemented the highest corporate governance standards ​available
  • stringent quality criteria for Borrowers
  • strict conflicts of interest policies
  • careful selection and due diligence of partners and service providers
  • eppf is set-up in a way to give investors a most transparent view of Borrowers using technology platforms
  • eppf balancing the need of information from investors with the need of confidentiality towards the public for Borrowers