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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 - - PowerPoint PPT Presentation
Co-operative Capital Units BCCM Capital Symposium 30 May 2018 A tax accountants view DEBT EQUITY An investors view Secured debt DEBT Unsecured liabilities Subordinated debt Preferred equity EQUITY Ordinary equity And a co-
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An investor’s view
DEBT EQUITY
Secured debt Unsecured liabilities Subordinated debt Preferred equity Ordinary equity
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And a co-operative’s view
DEBT EQUITY
Secured debt Unsecured liabilities Subordinated debt Preferred equity Ordinary equity Member shares Retained earnings
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…where CCU’s rank last
DEBT EQUITY
Secured debt Unsecured liabilities Subordinated debt Non-share capital CCU’s
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The CCU spectrum
Return Risk Revenue Based Loan
- Subordinated debt
- Amortising % of revenue
- Cumulative interest
Mutual Equity Interest
- Tier 1 capital
- Perpetual
- Dividends
Development capital Production capital
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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)
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CCUs in the wild
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CCUs in the wild
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Proposed ORICoop CCU
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Where is the capital that co-operates?
Hard to issue and harder to find investors
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Investor appetite
Retail Self-super Mid-market Managed funds Industry Funds Production Capital Development capital Demand gap… Issue size
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Demand meet supply
Members Institutions
A Cooperative Development Fund delivers the scale & investment process that institutions need…
FUND COOP
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Mapping coop needs
http://bonds.coop Step #1 to creating a Coop Development Fund gather potential capital needs of co-operatives
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