The Bonds are secured on Heritage Financial Holdings plc which holds interests in the target companies. Heritage Financial Holdings is a newly incorporated company and it has no assets or investment returns record. It will be the parent company of all the bond issuer companies. The subsidiary companies (such as Heritage Bond Series 1 plc) will be raising funds from investors and lending them to Heritage Financial Holdings. No security will be given to the subsidiaries for their loans. Heritage Financial Holdings will then invest the funds in the target businesses, generally securing, where possible, any loan facility by way of a debenture or other security, or by way of an unsecured loan. The Bonds will therefore be secured on the assets of Heritage Financial Holdings. Reliance is therefore placed on Heritage Financial Holdings’ financial performance and enforceability of the security taken over the assets of the target companies. If the target companies have not defaulted on their loan arrangement with Heritage Financial Holdings, then Heritage Financial Holdings’ security would not be enforceable. Heritage Financial Holdings will not always invest in the target companies in the form of debt. Equity investments will therefore be unsecured. As the shares in the target companies are unlisted/unquoted on a stock exchange, it will be difficult to obtain valuation information and information regarding the extent of the risk involved. There are often greater risks involved in unquoted shares than quoted shares/securities. There may be difficulties in selling the shares at a reasonable price and, in some circumstances, it may be difficult to sell it at any price, and returns on equity investments cannot be guaranteed and should not be seen as short-term investment.