#AETHERFSINSIGHTS The Bondholders’ Representative

Being a bondholders’ representative is no trivial matter

The bondholders’ representative is often mistakenly perceived as a tax or a mandatory toll.

Quite the opposite — the representative is the guarantor for both investors and the company, someone the issuer can always rely on to reach out to investors when needed. Much like a Cold War spy waiting to be activated, the representative stays on standby until the day a call comes in — evenings and weekends included.

When called upon, the situation is significant and requires a response that matches the context, both in terms of support and responsiveness. There is no room for excuses about “poor bandwidth” when fulfilling the duty they have quietly been paid for over the years. The bondholders’ representative is a seasoned professional, on par with lawyers and investment bankers who work alongside them on transactions. So why are there still so many deals where representatives resign or vanish without a trace?

As is often the case, it all starts at the beginning — at the time of issuance. When choosing the representative, the real question is whether the provider offers the necessary guarantees that I, as an issuer, will need in the future — because there is no plan B.