Security Agent
A Security Trustee is appointed when Investors are extending finance facilities or bespoke debt products to a Borrower, often on a syndication basis. Normally in such an arrangement, the terms and conditions of contract of each individual Investor or Institution may differ except for common security. The Security Trustee’s role is to create, hold and manage security and/or investment proceeds on behalf of all Investors until the obligations have been settled. We represent lenders in accordance with transaction hierarchies and ensure that each party’s interests are appropriately protected in terms of the transaction documents.
Independent Agent/Trustee
The Security Agent is an independent and impartial third party who plays a critical role in acting as a bridge between the borrower and the lender/s during the life of a non-syndicated or multi-party loan. The Security Agent coordinates and communicates equally with all lenders, borrowers and all other agencies (including Collateral Managers) involved in the structure and ensures that each party is simultaneously appraised or updated on developments.
Syndicated Bank Facilities
With specific regard to the financial services sector; Imara Fiduciary is ordinarily mandated as an independent, non discretionary Security Agent appointed to act on behalf of all lenders in syndicated or funding arrangements. Imara Fiduciary is not a bank and therefore acts independently with no potential for conflict
- The role of the Security Agent in a syndicated bank facility is the administration and monitoring of transaction security, the enforcement and the distributions of the security proceeds to secured lenders on default. With regard to syndicate matters it also functions as a single point of communication between syndicate members and the borrower ensuring all syndicate members receive the same information timeously.
- All of this is done in accordance with the instructions provided and obligations imposed on the Security Agent by a group of lenders in accordance with the agreed terms of a Security Sharing Agreement.
- Monitoring the security and if need be monitoring:
- Asset coverage ratios;
- Compliance of terms of security stipulation by the Issuer; andOngoing compliance with warranties and undertakings made by the borrower at inception;
Contacts
- Rashida Chikudo
- Block 2, Tendeseka Office Park, Samora Machel Avenue, Harare, Zimbabwe.
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+26324 2700000/ 2791318/2790090
/2790164/2790304
In the Zimbabwean debt capital markets, Imara has been proactive in assisting listed and unlisted companies’ access to capital that matches their unique operating requirements.
