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16 December 2021
Case Study: Bearer Bond Coupon Sheets
Our Client: Leading International Bank Following the maturity of its legacy Fixed Income Bearer Bond a high-profile Financial Institution required a new production of $10,000 and $100,000 denomination Bearer Bonds with a face value of over $250 million. A leading international bank acting as the institution’s paying agent recommended A1SP to assist in the development… Continue reading Case Study: Bearer Bond Coupon Sheets
Our Client: Leading International Bank
Following the maturity of its legacy Fixed Income Bearer Bond a high-profile Financial Institution required a new production of $10,000 and $100,000 denomination Bearer Bonds with a face value of over $250 million.
A leading international bank acting as the institution’s paying agent recommended A1SP to assist in the development and enhancement of the detailed technical specification, and subsequently to design, produce and securely deliver the bearer bonds.
What is a Bearer Bond?
A bearer bond is a fixed-income security that is owned by the holder, or bearer, rather than by a registered owner. The coupons for interest payments are physically attached to the security. The bondholder submits the coupons to a bank for payment and then redeems the physical certificate when the bond reaches the maturity date. Although many securities are now traded electronically, there are still requirements to have physical copies of bearer bonds. The advantage of a Bearer Bond is that it provides a guaranteed payment value and date, and that they are easily transferable and redeemable.
Bearer bonds are now generally stored by custodians in central vaults on behalf of bearers, with arrangements for the coupon and redemption payments to be made via paying agents who receive the Coupon payments from the bond issuer, which they distribute to the bondholders.
The A1SP Solution: Design, Printing & Secure Delivery of Bearer Bond Coupon Sheets
A1SP has extensive experience in producing high value bearer bonds and fiduciary documents and implemented a range of overt, covert, inspector, and forensic anti-counterfeiting security features.
The design incorporates complex guilloche, numismatic fine-line features, subtly embedded micro-text and multi-colour fluorescent designs. The paper is a certificate grade paper with the distinctive Iris watermark. Each of the Talons and Coupons have a high-security Iris hologram and unique ISIN serial number.
Delivery was made by CVIT dedicated vehicle to Custodian vaults split between the financial hubs of London, Frankfurt and Luxembourg.
