Be part of @seis.
Saver member. Subordinated bonds issued by @seis.
3.4%
fixed annual coupon
It is set in the deed of issue and paid on its date out of operating cash.
€9.50
is what one bond costs
Entry sits below ten euros. You can start with one.
12
exit windows a year
One every month. You ask for the buy-back inside the window and you go into that month's allocation.
Investing in @seis means buying subordinated bonds issued by @seis. The coupon comes out of operating cash, so in a catastrophic year it is deferred to the next payment date with cash available. Buy-back is capped at 5% of the outstanding balance per year and there may be a wait until the next window.
How you get out
The first way is the buy-back. @seis buys your bond back for what you put in, in monthly windows, up to a cap of 5% of the outstanding balance per year. If a month gets more requests than fit, they are shared out pro rata.
The second is the members' board. You offer your bond to another member at that same value and the transfer is closed away from the board. If the annual buy-back cap runs out, you wait for the next window. It can happen and we say so here.
What we always publish
- The coupon and the date it is paid
- The outstanding bond balance of the holding
- The buy-back windows served and what was allocated in each
- The result of each farm and the kilos of each season
Questions
What exactly am I buying?
Subordinated bonds issued by @seis. It is debt of the holding with a fixed 3.4% annual coupon. You are not buying a farm or a share of one.
When is the coupon paid?
On 31 January every year, on what you have put in. In a catastrophic year it is deferred to the next payment date with cash available.
Can I take it in produce?
Yes. Before each payment you choose cash or shop credit. The credit is worth 10% more than the gross coupon.
Does the tax office take a share?
Yes. The coupon counts as investment income and carries 19% withholding. We pay it over and you receive the net amount.
How do I get out?
Through the buy-back, in monthly windows capped at 5% of the outstanding balance a year. Or through the board, offering your bond to another member. If the cap runs out, you wait for the next window.
What happens if a farm has a bad year?
The coupon comes out of the cash of all the farms together. If one year it does not stretch, it is deferred and paid before any capital is returned.
Do I get a vote in @seis?
No. The bonds carry no vote at the general meeting. Your interests as a bondholder are defended by the bondholders' syndicate.