What is a Collaterised Asset Backed Note (CABN)?

A Note is a promise by a Borrower to pay a Lender, which may be backed by assets of the Borrower. Collaterised Asset Backed Note (CABN) is a type of Repurchase agreements (REPO) developed by e-Link Markets.

 

REPOs are financial contracts that allow an investor to purchase assets of an MFB at an agreed amount.  And then at a future date the MFB will repurchase the assets at a higher amount, such that the difference in the purchase and repurchase amounts represents interest payments to the investors by the MFB for use of the funds provided by the investor. To ensure liquidity and safety of funds the transactions are settled through our appointed custodian bank United Bank of Africa. 

What is Convertible Asset Backed Equity (CABE)?

Convertible Asset Backed Equity (CABE), is a composite financial instrument that has been developed by e-Link Markets that enables holders of Collaterised Asset Backed Notes to convert a portion or all of their Note payments due at  maturity to equity investment in the Borrower’s company. 

 

As the name implies this product or service facilitates in a collateralised, liquid and safe environment, the borrowing and lending of funds to market participants. CABE is facilitated for a maximum tenor of one year.  CABE is traded on an interest bearing or discount basis. (i.e.  Interest can be earned upfront or at maturity).

  

 

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