Reference

Community bond glossary

Check an offering’s own definitions when a legal term changes the rights of a bondholder.

A structure in which principal is due in one payment at maturity, although interest may be paid earlier.

Claims described as ranking equally with one another. Always identify the creditors and the relevant borrower or collateral.

A cash flow coverage measure. Definitions vary by loan agreement; check the numerator, payments included and period before comparing values.

Debt backed by a legal claim on specified assets. The value available to investors can depend on senior charges and enforcement.

An electricity purchase arrangement with contracted pricing and a defined term. Its expiry can affect expected project revenue.

The possibility that new debt or investment needed to pay a maturing obligation is unavailable or more costly.

The dated issuer document setting out an offering, its terms and disclosed business and risks. It must be read with its schedules.

A claim entitled to payment or collateral proceeds ahead of a junior claim under the relevant legal agreements.