A Corporate Note is a short to medium term debt instrument issued by a company to investors. The instrument creates an obligation on the company to pay interest and repay principal to investors at predetermined interest rate and time frame. Corporate Notes are used by the company for a variety of reasons including capital expenditure, meeting cash flow needs and restructuring capital framework. They are regarded as safer investments than owning company stock as they receive compensation prior to shareholders in the event of a winding up event. Tenors include 365 days with a minimum investment amount of XCD 5,000.
ECHMB’s Note are issued by Offer Memorandum with Eastern Caribbean Stock Exchange acting as the Bank’s Registrar, Transfer and Paying Agent. Interest is usually payable semiannually.
Benefits to Investor:
Competitive Interest Rate
Protection of Principal
No Interest Penalty on Early Redemption
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