About the EUR Credit Linked Notes
MCB Securities Ltd is acting as Sponsoring Broker, Underwriter and Market Maker on the Credit Linked Notes being issued by CM Structured Products (2) Ltd.
Key Information relating to the Offering are as follows:
1,003.52
EUR
Issue price / Note
1
Note
Minimum investment
(additional multiples of 1 Note)
2.95%
p.a.
Coupon rate
Applicable from 13 January to 13 April 2026
10 February 2026,
3.00 p.m.
Offer closes
| Issuer | CM Structured Products (2) Ltd |
| Reference underlyings | COVIFRA bond (68%), City & Beach (La Pirogue Hotel) bond (23%) and Riveo bond (9%) |
| Securities offered | Secured credit linked notes |
| Offer type | New issue of securities |
| Maximum amount available for subscription | EUR 8.52 million |
| Issue price | EUR 1,003.52 (inclusive of accrued interests of EUR 3.52) |
| Interest payment frequency | Quarterly |
| Next put option date | 13 April 2026 |
| Interest reset date | 13 April 2026 |
| Coupon rate | 2.95% p.a. up to 13 April 2026 |
| Minimum investment | 1 Note (additional multiples of 1 Note) |
| Expected amount in Issue post the offer | EUR 21.96 million |
| Security package of the reference underlyings | The bond issued to CMSP2 by (i) C&B is secured by way of a fixed and floating charge on all its assets; (ii) COVIFRA is secured by a pari passu first rank fixed and floating charge on all its assets and (iii) RIVEO (Four Seasons) is secured by way of a first rank fixed charge on land and building of the issuer and floating charge on all its assets. |
| Offer closes | 10 February 2026 |
| Settlement date | 18 February 2026 |
| Allotment date | 25 February 2026 |
| Listing and commencement of trading on SEM | 25 February 2026 |
| Refund of any excess application monies | Within 2 business days of Allotment date |
Credit/default risk: Investors in the Notes will bear the credit/default risk of the underlying corporate bonds in which CMSP2 has invested. The portfolio of CMSP2 consists of bonds issued by C&B (23%), COVIFRA (68%) and RIVEO (9%). By investing in the Notes, investors should be aware that they may not get back 100% of their capital if the bond issuers default on their capital repayments.
Concentration risk: The portfolio consists of three bonds issued by three issuers and exposed to the hospitality sector only and may not offer sufficient diversification benefits.
Lower nominal value in case of default: If there is a default on the underlying bonds in the portfolio, the Issuer will proceed to transfer the defaulting bond to a new investment vehicle or distribute the defaulting bond to investors. The nominal value of the Notes will be adjusted downwards accordingly. Any amounts to be received from the new investment vehicle will depend on the recovery amount, if any, that is received after the recovery process.
Suspension of put option: In case of a Credit Event (for e.g. when there is a default on any of the bonds in the portfolio), the quarterly put option may be suspended temporarily until the defaulting bond is transferred from the portfolio to a new vehicle or to the noteholders.
Quarterly interest reset: The interest rate is usually reviewed every quarter and the new rate is notified to Noteholders through the Circular Notice at least 12 business days prior to effective date of the new rate. Noteholders will have the opportunity to exercise their put option before the effective date of the new rate.
E-mail communications only and 3-business day deadline: All communications from the issuer (including the Circular Notice) are done by e-mail only. Once a Circular Notice is issued, Noteholders will have 3 business days to signify their intention to exercise their put.
Recommended holding period: Minimum of 3 months
Transaction costs:
- At entry during Offer Period: NIL
- At exit: 0.10% (discounted fees of 0.03% for MCB Securities Accounts)
Put conditions: Noteholders willing to exercise their put options have to reply by e-mail within 3 business days of the Circular Notice date and quote the appropriate wordings provided in the Circular Notice. Redemption proceeds are paid on the Interest Reset Date.
How to subscribe?
Prospective Investors can apply for the shares online at invest.mcbcapitalmarkets.mu.
Eligibility to subscribe digitally
Only selected individual applicants can apply online. Other investors (joint, minors, corporate bodies and institutional applicants should use the Manual subscription option to subscribe manually). You may be required to produce in person your original NIC, proof of bank account and KYC documents for identity and account confirmation.
Prospective Investors opting for a manual application should fill in and sign the Application Form, provided in the Prospectus. The Application Form must be returned with the payment instruction and should reach MCB Securities Ltd or not later than 3:00 pm on 10 February 2026.
Disclaimer
MCB Securities Ltd holds an investment dealer (full service dealer including underwriting) licence from the Financial Services Commission (Licence No. IP14000001). MCB Securities Ltd issues from time to time publications on specific companies, groups or sectors. Our publications should not be construed as offers or solicitations to buy or sell securities. The information contained herein have been compiled or arrived at by MCB Securities Ltd from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. All the information in this document remains subject to qualifications, conditions or more detailed description set out under the offer documents relating to the public offer. Any forecast or projections are also subject to further information detailed in the offer documents. It remains the recipient's sole responsibility to ensure that they have read and understood the terms and conditions of the public offer. The recipients are advised to seek professional advice prior to making any investment decision. This document has been provided solely for the assistance of recipients but should not be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. Neither MCB Securities Ltd , nor any of its director, officer or employee, accepts any liability whatsoever for any direct or consequential loss arising from any use of our publications. Furthermore, our publications may not be reproduced, distributed or published in whole or in part for any purpose, unless prior authorisation is obtained from MCB Securities Ltd . This document remains subject to the legal notices and disclaimers found on our website: https://mcbcapitalmarkets.mu/legal-notice.