It is with great excitement that we officially launch our second institutional bond - the Series 2 Euro Bond, which is being listed on Berlin Stock Exchange and Frankfurt Stock Exchange through OMNIA Bonds II plc.
OMNIA Bonds II plc issues bonds with an issue size of EUR 250M to raise funds secured by fine art - one of the highest yielding asset classes over the last decade, owned and pledged by wealthy individuals, foundations, orders, charities or corporations.
THE OMNIA STRUCTURE
We have created an opportunity for investors to enjoy a highly competitive and fixed rate of return. Our five-year, asset-backed Bond pays 6.5% gross interest per annum over five years, paid semi-annually, with a minimum investment of EUR 100,000 and the investors’ capital returned in full on maturity in 2023.
Our Bond creates an opportunity for investors to follow the journey of successful, fast-moving companies without participating in the risk of their future. We are excited about expanding our business and having found a way of satisfying the needs of our prospective bondholders in a way that we believe is truly unique in the current market.
ASSET-BACKED BONDS
High net worth investors tend to have much of their capital tied up in passion investments, such as art, classic cars, diamonds or wine, and while many of these investments have been made for reasons of passion, investors do hope for some capital appreciation over time. And there wishes have been heard; over the last ten years, classic cars have yielded 490% and fine art has yielded 226% according to the Knight Frank Luxury Investment Index.
According to the Financial Times, approximately 80% of the world’s art is in storage – just waiting to be securitised and to provide the art owners with a cash flow based on the valuation of the artworks without having to sell them. It is important to emphasise that most art owners are not interested in selling their artwork - although the artwork has been bought with investment in mind, almost 90% of the buyers have a collecting purpose.
For OMNIA to supply the market with a bond of security and yield, we must secure our investors’ capital with those asset classes that have yielded the most. Compared to real estate, fine art (top 500 artists) have yielded 61% in just five years, and growth-based private equity is currently the best performing ordinary asset class on the market.
SERIES II
For the Series II Bond, we are proud to announce that the presold part during our soft booking phase is asset-backed and secured by an impressive collection by Auguste Rodin (1840-1917), the remarkable French sculptor, known for, among others, “The Thinker” – one of the most recognised and famous sculptures in the world. As we enter the subscription phase today, we will continue to secure ongoing sales of bond tickets with more artworks of top 300 artists of high value. Thereby, we are always securing our bond with a minimum of 125% asset-backing.
OMNIA IS NOT AN ART FUND
With our structure, fine art owners receive an income stream based on the value of their assets, the bond market receives a safe bond secured against high value artworks of OMNIA Bonds II plc, and OMNIA receives funds for private equity investments.
This means that OMNIA is not a traditional art fund, as we do not invest in art – we are a privately held private equity firm securitising fine art to underpin our bond offerings and fund our private equity investments, which secure the art owners and provide them with an income stream from the investments made.
For us, art functions as backup for our private equity investments, and for the art owner there is an entirely unleveraged private equity portfolio protecting the art.
INVESTING IN PROFITABLE SMES
The funds raised through our bond offering are lent to OMNIA, which focuses on the European and American SME (small and medium-sized enterprises) market. We invest in profitable (EUR 1-10m of EBITDA) businesses demonstrating annual growth of 20% or more, which are run by founders and a management team with successful track records.
We strive to build a portfolio of companies with great synergic effect among them. The bigger the portfolio, the greater the toolbox for our portfolio companies; a portfolio of best of breed entrepreneurs and minds roaming the entrepreneurial space.
CREATING VALUE FOR ENTREPRENEURS
The SME founders that we meet are often entrepreneurs to the bone, whose companies are their lifeblood. They are not looking for a traditional private equity investor who will take over their company and run it on their terms. What they are looking for is an equal partner who will take them to the next level.
We also know that one of the reasons that entrepreneurs build their own businesses is that they thrive with the freedom of having their own – rather than being forced to sit at a desk from 9-5. Therefore, they are also looking for an investor with this element of freedom in mind, but they do not find this with traditional private equity funds. This is also the reason why most of these companies are not for sale when we meet the founders, but with the value add and interest in our joint journey to take the companies to the next level that usually changes.
At OMNIA, we confident that we are able to offer our entrepreneurial founders the exact investor they have been looking - who matches their mindset and who is able to create value for their company without taking it out of their hands.
BY POPULAR DEMAND
Since we launched our first institutional bond in 2017 with great success, we have experienced even greater demand for launching our Euro Bond. With the incredible Rodin collection at hand, we are able to scale our bond issuing, and thereby offer bond holders a high yield of 6.5% and low risk. The first tickets have already been sold during our soft booking phase.
LEARN MORE
To request Information Memorandum please send an email to im@omniabondsii.com
For orders, instruct your broker (if applicable) and initiate the process by e-mailing dealing@omniabondsii.com and refer to ISIN: GB00BFM7CV87
BOND SECURITY DETAILS
ISIN: GB00BFM7CV87
Coupon: 6.50%
Currency: EUR
Asset backing: Min. 125%
Issuer: OMNIA Bonds II plc
Sponsor: OMNIA Private Equity AG
Status: Senior, direct, secured, unconditional Obligation of the Issuer
Arranger: Bedford Row Capital Advisers Limited
Security Trustee: GRM Law Trustees Limited
Distribution: Semi-annual
Term: Five-year (2023)
Listing: Berlin Stock Exchange and Frankfurt Stock Exchange
Rating: N/A
Issue size: 250m
Start date: 3 May 2018