GuideLegal

What is a prospectus?

A prospectus is a substantial legal document related to a Eurobond.

The prospectus details the structural, legal and characteristics of the bond. It furthermore may disclose financial information about the issuer.

A prospectus is also referred to as an “indenture”.

Where can I find a prospectus?

A prospectus is often shared directly to (institutional) investors by the bookrunners or on a request-only basis. Alternatively, issuers may choose to upload a prospectus in the investor relations section of their corporate website.

All prospectuses of Nigerian Eurobonds that are allowed to be publicly available can be found on www.hownoww.com.

What are covenants?

During the life of a Eurobond certain things may change for the issuer. For example, an issuer may acquire another company, the balance sheet structure may change or collateral claims may be reorganised.

To clearly mention the limitations and restrictions for an issuer in relation to the Eurobond and how and when thresholds are triggered a legal document accompanies a Eurobond when issued. This document is called a “covenant”.