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By Olivier MARQUAIS, Counsel Jeanclaude LACATENA, Associate in Dispute Resolution, Loyens Loeff Luxembourg sàrl
Notes (“obligations”) are negotiable instruments of a collective character conferring creditor rights to their holders (“obligataires”)(1) to the benefit of both the issuer (enabling it to rapidly secure funds) and noteholders (who receive guaranteed interest payments during the life of the notes alongside the repayment of the principal at the maturity date).(2)
Raising funds by way of issuing notes or bonds has become very popular in Luxembourg amongst companies of all sizes, whether public or private, irrespective of their corporate form. Since 2016, all commercial companies may issue notes,(3) but the collective...
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