Co-operative Capital Units BCCM Capital Symposium 30 May 2018 A - PowerPoint PPT Presentation

Co-operative Capital Units BCCM Capital Symposium 30 May 2018

A tax accountant’s view DEBT EQUITY

An investor’s view Secured debt DEBT Unsecured liabilities Subordinated debt Preferred equity EQUITY Ordinary equity

And a co- operative’s view Secured debt DEBT Unsecured liabilities Member shares Subordinated debt Preferred equity EQUITY Retained Ordinary equity earnings

… where CCU’s rank last Secured debt DEBT Unsecured liabilities Subordinated debt CCU’s EQUITY Non-share capital

The CCU spectrum Return Development capital Revenue Based Loan - Subordinated debt - Amortising % of revenue - Cumulative interest Production capital Mutual Equity Interest - Tier 1 capital - Perpetual - Dividends Risk

The promise of flexible capital … Can be issued to non-members - Non-voting - No restrictions on holdings Can be equity-like - No restrictions on returns - Can be perpetual (or fixed term)

CCUs in the wild

CCUs in the wild

Proposed ORICoop CCU

Where is the capital that co-operates? Hard to issue and harder to find investors

Investor appetite Retail Self-super Mid-market Managed funds Industry Funds Production Capital Issue size Demand gap … Development capital

Demand meet supply FUND Institutions COOP Members A Cooperative Development Fund delivers the scale & investment process that institutions need …

Mapping coop needs Step #1 to creating a Coop Development Fund gather potential capital needs of co-operatives Register your interest at: http://bonds.coop