FREQUENTLY

ASKED

QUESTIONS

FAQs

1. General Bond Information

What is a corporate bond?
A corporate bond is essentially an IOU. Investors lend money to the Collateral Manager(s), who promise to repay the capital at the end of the bond’s term. During the term, investors receive regular interest payments (the “coupon”). For example, the Propifi Bond pays an 8.1% coupon. The Collateral Manager uses investor funds to grow the business until repayment at maturity.

What is the difference between investment grade bonds and minibonds?

Minibonds / Junk Bonds: Often unsecured, illiquid, unlisted, and very high risk. They are sometimes marketed as “asset-backed” but typically have little or no security.
Investment Grade Listed Bonds: Senior secured, rated AAA–BBB, freely transferable, liquid, and categorized as low risk (historical default rates ~0.4%).

What does “senior secured” mean?
“Senior secured” means bondholders have a first priority charge over specific pre-existing collateral, held by an independent Security Trustee. This ensures that in the event of issuer default, assets are available to cover obligations, independent of company risk.

2. Investor Protection

How is my money protected with the Propifi Bond?

Funds raised are used by Propifi Investment Limited (PIL) to make secured bridging loans.
Each loan is backed by property security, becoming a financial collateral asset of PIL.
An independent trustee takes security over all issuer and PIL assets on behalf of noteholders.
If Propifi defaults, the trustee can enforce and liquidate collateral to repay investors.

Who is the trustee representing bondholders?

Truva is the independent trustee safeguarding noteholder interests. Truva provides corporate trustee and administration services and holds security separately from Propifi. The issuer’s share capital is fully owned by Truva Share Trustee Limited, which is independent of Propifi.

3. Bond Terms & Returns

Truva is an independent trustee representing the interests of the noteholders.

Truva is a group of companies that provide corporate trustee and corporate administration services for bond programmes to ensure that appropriate security is taken in the interests of noteholders.

How often is the coupon paid?

Quarterly, with announcements lodged on the London Stock Exchange.

Has Propifi ever missed a coupon payment?
No. All coupon payments have been made in full and on time since 2020.

Has the Propifi Bond made any redemptions?
Yes. Propifi has successfully completed scheduled redemptions of maturing bond tranches, repaying principal to investors alongside coupon payments. This demonstrates both the strength of the bond programme and the protection structure in place.

What is the minimum investment?
£100,000.

In what currencies is the bond available?
GBP (£), USD ($), and EUR (€).

How much is Propifi raising?
The programme is capped at £5 billion, issued in tranches of £300 million.

4. Trading & Liquidity

Can I sell my bond before maturity?
Yes. The Propifi Corporate Bond is listed on the Boerse Frankfurt Stock Exchange and can be traded before maturity. However:

A broker fee applies to secondary sales.
Selling early may reduce overall returns compared with holding to maturity.

What is “dirty pricing”?

Dirty Price = bond price plus accrued interest since the last coupon payment.
Clean Price = bond price excluding accrued interest.
Dirty pricing is standard in Europe; clean pricing is typical in the U.S.

5. Investment Grade Bond Features

An investment grade bond typically includes:

Listed on major exchanges and freely transferable
Global ISIN number and rating AAA–BBB
Eligible for ISAs, ISA transfers, SIPPs, and regulated investment platforms
Senior secured with pre-set collateral
Public audit and regulatory compliance
Issuers may include supranational bodies, governments, and large established companies
Buyers include pension funds, insurers, hedge funds, sovereign funds, and individual investors

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