WHO IS INVOLVED IN A BOND REGISTRATION PROCESS?

Bond registration is the process of legally recording the ownership and transfer of a bond issue. In South Africa, several parties are involved in the bond registration process.

The Issuer:

Can be a company or a government entity. The issuer is responsible for setting the terms and conditions of the bond issue, such as the interest rate, the maturity date, and the payment schedule.

The Registrar is:

Responsible for maintaining the bond register, which is a record of all the bondholders and the amount of bonds they own. The registrar also handles the transfer of ownership of the bonds and ensures that the interest payments are made to the bondholders.

The Trustee is:

A third party appointed by the issuer to represent the interests of the bondholders. The trustee ensures that the issuer complies with the terms and conditions of the bond issue and acts as a mediator between the issuer and the bondholders.

The Paying Agent is:

Responsible for making the interest payments to the bondholders on behalf of the issuer. Usually a bank or a financial institution.

The Bondholders are:

Investors who purchase the bonds issued by the issuer. They receive interest payments from the issuer for the duration of the bond and the principal amount at maturity. Bondholders have the right to transfer their ownership of the bonds to another party