(This investment is available only to ‘wholesale clients’ as defined in the Corporations Act)
Invest in an 8.0%pa 31 March 2030 AUD Tranche 1 Series A Note issued by CRAFT Bond Issues Pty Ltd as trustee for the Commodities Receivables and Finance Trust (CRAFT).
The information below is a summary of this investment opportunity. Investors must obtain and read the Information Memorandum and Issue Supplement 1 (both dated 21 March 2025) before investing in this opportunity.
Overview
CRAFT Bond Issues Pty Ltd established CRAFT to raise funds through the issue of Australian dollar Notes and apply those funds to invest directly (and indirectly through Approved Commodity Finance Lenders) in (or make) loans to participants in the Commodities Sector.
Craft Bond Issues will use the proceeds raised by these Notes to invest in or lend to Approved Commodity Finance Lenders (ACFLs) which facilitate financing (Commodity Financing) to participants in the following commodities sub-sectors:
- hard commodities (minerals and materials);
- soft commodities (agriculture and foods);
- liquid commodities (gases, minerals and agriculture); and
- natural resources and commodities supply chains (including producers, traders, transporters, refiners/processors and customers).
Note Disclosure Documents
• Information Memorandum dated 21 March 2025
• Issue Supplement 1, dated 21 March 2025
Craft Marketing Documents
Key Terms
| Issuer | CRAFT Bond Issues Pty Ltd ACN: 683 091 714, Authorised Representative 1314349 of Novus Capital Ltd ACN 006 711 995 (AFSL 238168) (Novus). |
|---|---|
| Investment Manager | CRAFT Commodity Services Pty Ltd ACN: 681 533 111, Authorised Representative 1314359 of Novus |
| Arranger | ABE Distribution Pty Ltd CAN 673 177 912, Authorised Representative 1307088 of Novus |
| Coupon | 8.0% p.a (fixed), paid semi-annually |
| Maturity Date | 31 March 2030 (the Issuer has the opportunity to extend the Maturity Date to 30 September 2030) |
| Issue Size | AUD 30 million with the ability to increase this amount *The targeted aggregate of the outstanding principal is A$150,000,000. The actual aggregate of the outstanding principal of Series A may be more or less than this amount. |
| Issue Price | $100 |
| Minimum Investment | $10,000 |
| ABE Code | CRNF080030 |
| ISIN | AU3CB0319721 |
Risks
This is an overview of the main risks associated with this investment. Further details are set out in the Information Memorandum.
- Interest rate movements – may impact on the investments made by CRAFT and attractiveness of the Notes;
- Illiquidity – the Notes may be difficult to trade;
- Lack of capital base – CRAFT has not been capitalised and is reliant on the Investment Manager successfully implementing the Investment Strategy;
- Reliance on the Investment Manager’s performance – CRAFT’s ability to pay interest and to repay the principal at maturity relies on the Investment Manager generating sufficient income, interest and profits;
- Start-Up – CRAFT, the Investment Manager and the Issuer are newly established and do not have a track record of issuing Notes;
- Unhedged foreign currency risk – the Investment Manager may not hedge against foreign currency risks arising the Issuer raising funds in AUD and investing and lending in foreign currencies; and
- Investment risk – the Commodity Financing industry is subject to a wide range of risks and uncertaines including market, war, trade war, economic, geopolitical, regulatory, credit, operational, borrower, loan default and enforcement risks.
- Foreign counter-parties – CRAFT’s loans and investments will be made predominantly to foreign (non-Australian) entities and therefore, if the Issuer needs to enforce or to sue on any of its contracts, ligaon in foreign jurisdictions is likely to be expensive, difficult, uncertain and slow.
Disclaimer: This webpage has been prepared by ABE Distribution Pty. Ltd ACN 673 177 912 (“ABE”). ABE is a Corporate Authorised Representative number 1307088 of Novus Capital Limited ACN 006 711 995 AFSL 238168. It describes an offer which is available only to ‘wholesale clients’ (as defined in the Corporations Act) only. Before investing in this Note, you should read the Information Memorandum and Issue Supplement 1 (both dated 21 March 2025) and consider whether an investment in the Note is appropriate for you. No representation or warranty is made as to the accuracy, completeness or reliability of any estimates, opinions, conclusions, or other information contained in the content. The content may contain certain forward-looking statements. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, and other factors, many of which are beyond our control. To the maximum extent permitted by law the Investment Manager disclaims all liability and responsibility for any direct or indirect loss or damage that you may suffer as a result of relying on anything in this content. Past performance is not an indication of future performance.