XCELL GROUP SLP BONDS
Xcell, in conjunction with CAIBUO CAPITAL Société de Gestion (CAIBUO), a Luxembourg licensed and regulated financial company, have created a Specialized Limited Partnership (SLP) under Luxembourg law, which allows for the securitization of certain assets for the purpose of selling securities, in this case bonds and based on the underlying value of the assets pledged. The purpose of this capital raise is to increase the purchasing capacity of Xcell to meet the existing demand of the Artisanal mining community in Guinea, which is currently producing over 800 Million Euros of Gold a year.
HIGHLIGHTS OF XCELL SLP BONDS
1. Five (5) Year Term interest paid annually with full principal repayment after 5 years.
2. Investor’s Principle will be 100% Guaranteed, by using either (i) an independent policy covering the risks of gold trading or (ii) via a captive insurance fund, which will be initially established within 30 days of bond issuance. Both options are currently in the process of due diligence to be completed prior to the first trade using Bond capital.
3. Seven (7%) Simple Interest paid annually:
a. If the captive fund insurance is chosen:
i. The first two years of Seven (7%) Percent Simple Interest guaranteed and held for the investor in escrow by CAIBUO
ii. The remaining three years of Seven (7%) Percent Simple Interest will be paid into escrow One (1) year in advance of each future interest payment, with written notice given to the investors.
b. If the independent insurance policy is chosen, the full amount of the interest for the 5 year term will also be guaranteed so no reserve will need to be established.
4. CAIBUO receives a fee of up to Three (3%) Percent above the par price of the bonds paid by investor at time of sale in order to pay for its services as well as that of brokers bringing in investors. Those brokers will be paid by CAIBUO and will be fully disclosed to the investor prior to investment.
The Xcell Group SLP bonds have already been listed on Bloomberg. As a private placement, it is not a public offering, but a prospective investor can be granted access to the listing by making a request to Xcell Swiss. Upon receiving the request, Xcell Swiss will provide access so more information can be seen via a prospective investor’s Bloomberg terminal. From there it is easily verifiable. In addition, Ecobank as the Paying Agent for the bonds will list the bonds as well upon receipt of the first compliance verification. At that point, the investor will no longer need permission from Xcell to get access via the Bloomberg terminal. It will also be populated on the Bloomberg website for those without access to a Bloomberg terminal. For the ease of the prospective investors, a screen shot of the Bloomberg terminal listing is here: