General Risks Chiltern BondCo

Risk factors to consider before subscribing to the Chiltern BondCo family of bonds. For a full list of potential risks you must read the relevant section of the Information Memorandum.

THE COMPANY MAY BECOME INSOLVENT

Subscribing for Bonds means that Bondholders are lending money to the Company. Bondholders will receive interest and at the end of the term of each Bond (when it matures), their initial investment amount back. Investing in Bonds involves the risk of the Company becoming insolvent. Should this happen, Bondholders may lose some or all of their initial investment and/or some or all of any outstanding or future expected interest payments.

The interest and target return have been set in accordance with the realised performance of a Reference Lending Portfolio maintained over the last 3 years

CHANGE OF KEY PERSONNEL

The success of the Bond is dependent on the efforts, abilities and services of key personnel of the Issuer and its ability to attract and retain suitable personnel.

Key personnel are in place and have been with BondMason for a number of years.

THERE IS NO ASSURANCE THAT THE LENDING PORTFOLIO WILL BE SUCCESSFUL

The Issuer will source assets which it considers suitable for its Lending Portfolio. The nature of the assets in which the Issuer invests carry risks, including potential defaults or delays in repayments from underlying Borrowers.

The Key Personnel have a good level of experience and expertise to consider investment risks associated with underlying loans in constructing an appropriate Lending Portfolio.

THE VALUE OF YOUR INVESTMENT IN ANY BOND IS NOT PROTECTED BY DEPOSIT PROTECTION FROM THE FINANCIAL SERVICES COMPENSATION SCHEME (“FSCS”)

If the Issuer were to become insolvent or go out of business, Bondholders may lose all or part of their investment in the Bonds and the FSCS would not be required to compensate you for such loss.

The FSCS does provides cover in the event that an FCA authorised firm cannot meet its obligations to certain eligible Bondholders, in which case there may be an entitlement to compensation from the FSCS depending on the type of investment and the circumstances of the claim. This relates to the Financial Promoter only, not the Issuer. For more detail on the FSCS and their eligibility criteria see their website www.fscs.org.uk/what-we-cover/eligibility-rules/

BONDS ARE TRANSFERABLE, BUT IT MAY BE DIFFICULT TO IDENTIFY A PURCHASER

There will be no ready market in which the Bonds may be sold. Investors should consider a Bond investment is tied up until the redemption date.

BONDS PAY A FIXED RATE OF INTEREST

If prevailing interest rates rise, bondholders may lose out as the rate of the is fixed at the outset for the term of the bond.  The interest rate on each bond has been set carefully to seek to mitigate against interest rate increases over the life of the bond, as well as the impact of inflation.

A BONDHOLDER RESOLUTION MAY BE PASSED AGAINST YOUR WISHES

Bondholders are able to vote on matters relating to the bonds, which may not require a unanimous vote to initiate a change in terms. Investors applying for Bonds directly will not receive the additional rights and protections applicable to Bondholders who are advised by a Financial Advisor. You may want to consider making an application via your financial advisor

This website page is a joint promotion that has been issued by Absolute Return Bond I Ltd and Absolute Return Bond II Ltd, both trading as The Absolute Return Bond, The Absolute Return Bonds and Chiltern BondCo. Absolute Return Bond I Ltd and Absolute Return Bond II Ltd are the names of the bond issuing entities, issuing 1 year and 3 year bonds respectively. Absolute Return Bond I Ltd & Absolute Return Bond II Ltd: Registered Address Unit 4, Kinsbourne Court, Luton Road, Harpenden, Hertfordshire, AL5 3BL. Registered in England and Wales. Absolute Return Bond I Ltd Company Number: 11489122. Absolute Return Bond II Ltd Company Number: 11489199. This website page has been approved for the purposes of Section 21 of the FSMA by Northern Provident Investments Limited. When we refer to ‘the Company’ and ‘the Issuer’ we are referring to either/or The Absolute Return Bond I Ltd and The Absolute Return Bond II Ltd