Frequently Asked Questions

What is an SME Bond?An SME Bond acts as a debt instrument which, prior to conversion, can include an interest (coupon) rate. However instead of paying out cash the SME will pay the investor in shares once the bond is converted.
How many SME Bonds can my Company create?A User is restricted to creating no more than ten (10) SME Bonds in any twelve (12) month period.
What is meant by "coupon rate"?"Coupon rate" is the interest rate and is a term that originated when bondholders had to detach and mail in coupons to receive their interest payments. The name stuck even after information began transmitting electronically.
What is a "BCN"?Each SME Bond certificate has a unique Bond Certificate Number (BCN). Investors should keep a separate record of the BCN in case of loss or theft.
What is the typical profile of an SME bond investor?Generally these are people around a good idea or new venture who would love to own a slice of the action…all that’s been missing is the opportunity and the right structure.
If you can't find an answer to a question you have about SME Bonds, please ask us the question and we will respond within 24 hours.

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SME Bonds explained


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