LegalPay, a financial technology company specializing in providing financial services to the legal industry, has announced the launch of Interim Finance Bonds for retail investors.
The legal industry is facing a challenging economic environment, with many law firms struggling to secure funding to cover their operational expenses. The Interim Finance Bonds provide a new source of financing for law firms, allowing them to continue providing essential legal services to their clients. The bonds will be issued by LegalPay’s parent company, Legal Finance Inc, and will be listed on the Australian Securities Exchange (ASX). They will have a maturity of 36 months and will be fully redeemable on maturity.
The Interim Finance Bonds are designed to meet the growing demand for alternative investment options and offer investors an opportunity to earn a fixed rate of return while providing much-needed financing to the legal sector.
The interim financing bonds are fixed-income instruments to finance the costs of the enterprises undergoing CIRP, according to the tech-based FinTech firm, which is also an investor in commercial litigations and bankrupt companies. These bonds, with an issue size over INR 3 crore, have a credit rating of BBB-, have completed rigorous due diligence and risk assessment procedure, and have a 100x asset cover.
Kundan Shahi, CEO of LegalPay, said, “Opening such investments to retail investors will act as a step towards democratising equity markets investing and providing diversification benefits to retail investors. Retail investors usually have access only to traditional securities, primarily listed equities or fixed deposits. There has been a spurt in the emergence of different kinds of Corporate bonds in India with the overall market pegged at around INR 11,500 crores. Corporate bonds provide higher and safer returns to investors and LegalPay is the first platform to provide Interim financing bonds.”
Retail investors will now be able to diversify their portfolios on LegalPay’s platform and take advantage of benefits that were previously only available to super HNIs, thanks to the interim financing bonds. These bonds will allow retail investors to invest with a minimum investment of INR 10,000 and feature an exceptional coupon rate of 14%, allowing investors the chance to make significant gains.
The launch of Interim Finance Bonds is a significant milestone for LegalPay and its parent company and is expected to attract a significant amount of interest from retail investors looking for an alternative investment opportunity. The bonds will be available for purchase on the ASX from January 15th. Interested investors can visit the LegalPay website or contact their financial advisor for more information.