CP Funding Fixed Term Bonds

CP Funding Limited is a UK company that specialises in offering fixed term bonds, normally for a period of one year.
 
The Company is issuing its fifth Sterling cash bond for a fixed period of 12 months and have offered an interest rate of 5.15%. This is a fixed rate of return and will not decrease should (as expected) UK Sterling interest rates continue to fall during 2025. 
 
The bond is available from the 16th December 2024 and may be withdrawn if it reaches its maximum investment of £32m. Previously the bonds have sold out shortly before the end of the offer period. 

​

 
The bonds are what is known as cash bonds, that is to say they invest in financial instruments normally issued by governments and banks to corporate institutions where repayment terms range from 30 days to six months. These types of investments are known as cash investments and are exactly what banks do with a large amount of the money they receive when offering their customers savings accounts. Typical examples would be overnight money market rates, treasury notes and bills and interbank and corporate lending rates – all of which will generate returns above the current Bank of England base rate and most certainly above the majority of bank savings accounts.
 
The bonds are not a new concept, similar offerings are available through leading fund houses (such as Fidelity and Blackrock) where the structure is employed within a cash fund. However, these cash funds typically have a higher internal charging rate, retain more of the interest they receive and are therefore seldom as competitive as the bonds issued by CP Funding and similar organisations.
 
Golman Sachs offer an almost identical structure for their high-net-worth clients, with the bonds only accepting a minimum of US$1m investments.
 
CP Funding have launched four cash bonds over the past three years, the last one launched in September of this year offering a fixed return of 6.45%. Previously their bonds issued at a range between 3.25% and 7.15% depending on prevailing interest rates at the time. Three of the previous issues have fully redeemed with the last issue released in October due for redemption October 2025.
Now, the fifth Sterling bond offers a 5.15% fixed return for 12 months, unaffected by expected UK rate drops coming in 2025. Available from the 16th December 2024 to 15th January 2025 or until the £32m cap is reached.
 
The bond is listed on a European stock market that allows it to be traded, which means that should a saver need to withdraw some or all of their investment there is a mechanism in place to facilitate this. However early withdrawals will see a reduction of the interest accrued and interest accrues monthly over the 12-month period.
 
The bond can only be purchased through a regulated stockbroker and the Company has made arrangements with IIM Ltd in the Isle of Man to purchase the cash bonds on behalf of savers. IIM is regulated by the IOMFSA to conduct business in the Isle of Man and has the ability to hold savers bonds with a regulated custodian.
 
 
Please note that investment is restricted to a minimum of £15,000 and a maximum of £250,000 per individual.