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Credit Linked Notes

Institutional-Grade
Private Credit Structures

Discover a powerful tool that enables issuers to raise flexible, non-dilutive capital and investors to access risk-adjusted returns in a familiar, tradeable format.

Definition

What is a Credit Linked Note (CLN)?

A Credit Linked Note (CLN) is a structured debt instrument that links investor returns to the credit risk of a reference entity, portfolio, or asset pool. In practice, CLNs provide a flexible, cost-efficient way for corporates, asset managers, and specialty lenders to raise capital, while offering professional investors access to risk-adjusted, fixed-income opportunities in a familiar format.

Issuers

A Universal Tool for Raising Capital.

CLNs span the private credit market and can be applied across a diverse range of issuers. Whether raising growth capital, securitising loan portfolios, or syndicating strategies, they provide a flexible format recognised by global investors.

Corporate
Seeking flexible, non-dilutive financing linked to their credit profile.
Asset Managers
Packaging private credit strategies into securities for global distribution.
Non-Bank Financial Institutions (NBFIs)
Monetising loan books, receivables, or specialty finance portfolios.
Sponsors & Private Equity Firms
Syndicate capital efficiently alongside anchor investors, enabling smaller-ticket participation.
Specialty Finance Platforms
From fintech lenders to alternative credit providers, CLNs provide scalable funding solutions.

Use Cases

One Structure. Across Strategies

Credit Linked Notes (CLNs) provide a flexible, cost-efficient route for issuers and asset managers to access professional and institutional capital. Whether you are seeking to monetise existing assets or raise growth capital, CLNs can be structured to match the needs of your business and your investors.

Asset-backed CLNs

Issue asset-backed facilities through securitising loan books, receivables, or asset pools.

Corporate Credit CLNs

Ability to securitise corporate credit profiles and raise capital through flexible, non-dilutive structures.

Benefits

Efficiency, Flexibility, Credibility

Credit Linked Notes bring efficiency, flexibility, and credibility to the private credit market. They are one of the few structures that serve both sides of the table — providing issuers with a streamlined way to raise capital, and investors with access to institutional-grade, risk-adjusted opportunities.

Issuers Benefits

Non-dilutive capital
Raise debt financing while preserving equity ownership and control.
Speed to market
Bring transactions to market in approximately 30 days with standardised documentation.
Flexible structuring
Issue notes backed by corporate credit profiles, loan portfolios, receivables, or real estate debt.
Scalable distribution
Syndicate capital efficiently through private banks, investment platforms, and global custodians.
Cost-effective execution
Lower establishment and ongoing costs compared with traditional fund structures.
Institutional format
Access capital markets with Swiss ISINs, Bloomberg tickers, and Euroclear/Clearstream settlement.

Investor Benefits

Compelling Yield
Access risk-adjusted returns typically in the 9–13% p.a. range.
Diversified Exposure
Deploy capital across direct lending, mezzanine, real estate debt, trade finance, and specialty credit strategies.
Institutional Transparency
Detailed offering memoranda, ongoing reporting, and governance oversight through regulated service providers.
Operational Efficiency
Subscribe and settle via Euroclear/Clearstream with Bloomberg identifiers and ISINs.
Defined Structures
Customisable maturities (12–36 months) and compartmentalised issuance for asset/liability alignment.

Jurisdictions

Global Issuance Possibilities

While our preferred jurisdiction for CLN issuance is Luxembourg — renowned for its robust securitisation law, efficiency, and global recognition — issuers are not limited to one market.

CLNs can also be domiciled in many jurisdictions, depending on investor appetite, regulatory preferences, and regional nuances.

Cayman IslandsBritish Virgin IslandsUnited KingdomIrelandJerseyGuernseyLuxembourgMaltaMauritiusSingaporeHong Kong

Counterparties

Regulated Counterparties, Ensuring Credibility

Every Credit Linked Note (CLN) issuance is built on the involvement of regulated counterparties. These counterparties provide the infrastructure, governance, and investor protections that give the structure its institutional credibility.

Note Manager / Arranger
A licensed arranger designs the note, oversees due diligence, and prepares legal documentation — ensuring the deal meets both market practice and regulatory standards.
Note Administrator
The administrator maintains the register of noteholders, monitors covenants, and ensures reporting obligations are met throughout the life of the issuance.
Paying & Calculation Agent
A regulated institution manages cashflows: coupon payments, principal redemptions, and settlement through international clearing systems.
Clearing, Settlement & Pricing Counterparties
CLNs are admitted to Euroclear and Clearstream, typically with a Swiss ISIN and Bloomberg ticker. This makes them tradeable and recognisable to institutional investors worldwide.
Placement
Credit Linked Notes are settled via institutional capital markets infrastructure with Delivery-versus-Payment settlement via ClearStream and Euroclear. This makes them accessible via global custodians including private banks, investment platforms and other financial intermediaries.

Frequently Asked Questions

CLNs are designed for professional and institutional investors, typically accessed through private banks, custodians, and investment platforms.

Insights

What we're seeing, what we're thinking, and what we've been up to.

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