Equity Trustees is Australia’s leading specialist trustee, with a growing business focused on structured finance and debt capital/loan markets trust and agency services. With a combined 50 years of specialist experience in Australian and global contexts, our key people bring together legal and finance industry expertise and have experience in debt capital market transactions, structured/secured lending structures, compliance and funds management, supervision and administration of property and mortgage retail and wholesale funds.

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Equity Trustees provides a full range of trustee services for banks, financiers, lenders, borrowers, international investment managers and sponsors.

Service What we do Advantages of using Equity Trustees

Debt Capital Markets & Securitisation Services

Note/Bond Trustee
Ensures that Issuers meet their obligations to repay principal and interest for investors.
  • One point of contact for communications between issuer and investors – particularly useful for Kangabond issuers
  • Peace of mind for investors that a trustee is appointed allowing the Issuer to focus on commercial matters.
Issuer Trustee (securitisation)

Issues notes to investors and may be lender of record.

  • Established record of acting for Issuers of both wholesale and retail debt products in the market.
  • Experienced and specialised note trustee in wholesale and retail DCM transactions.
Issuing, calculation, paying agent and registrar

Arranges for notes to be made eligible in Austraclear.

Issues notes and ensures smooth settlement with the lead managers for onward placement to the investors.

Maintains the register of investors.

Calculates interest on floating rate notes and makes interest and principal repayments to investors.

Communicates with investors and acts as a conduit between the Issuer and the investors.

  • Assurance that calculations performed correctly.
  • Timely payment of interest and principal.  
  • Interfaces with Austraclear and noteholders on issuer’s behalf.
Security Trustee

Holds mortgage and/ or PPSA security (property, shares, lien over bank accounts etc.) for bond/note holders and enforces if there is a default by the Issuer.

  • Potential events of default are properly investigated and remedial action prompt taken
  • If an event of default occurs we take care of enforcing security for all creditors without conflict
  • Expert handling of any concerns or queries by noteholders

Standby Servicer (securitisation)

 Will step in as servicer should the original servicer be removed from the transaction.  
  •  Continuity of the transaction for the benefit of the investors in the event of a servicer default.
Document Custodian (securitisation)

Retains loan documents (such as mortgage packets) on behalf of the sponsor until the loan is discharged.

  • Established document custody facility with in excess of 50,000 wills stored in secure nationwide facilities.
Trust Manager
 Performs day-to-day management of the securitisation trusts and provides customised solutions
  • Cash flows are modelled in a market leading trust management system developed by MOODY'S ANALYTICS. 
Process Agent
 If a borrower or issuer is not incorporated in the jurisdiction of the governing transaction documents, a process agent is appointed to receive court process and forwards to the borrower or issuer.
  •  Assurance that an established specialised fiduciary will ensure all process is served promptly and in accordance with the Process Agent Agreement.
Service What we do Advantages of using Equity Trustees

Loan Market Services

 Facility Agent
Acts as intermediary between borrowers and lenders in a syndicated loan (ie. more than one lender), makes payments and communicates  with lenders if there is a default or proposed amendment.
  •  Assurance that the borrower(s) makes payments correctly.
  • Assurance that there is proper communication with lenders for amendments, waivers or other interactions.
 Security Trustee/Agent
 Holds mortgage and/ or PPSA security (property, shares, lien over bank accounts etc) for lenders and enforces if there is a default by the borrower.  
  • Potential events of default are properly investigated and remedial action taken.
  • If an event of default occurs we take care of enforcing security for all lenders without conflict.
  • Expert handling of any concerns or queries by lenders.
Service What we do Advantages of using Equity Trustees

Direct Property and Associated Services

Trustee and Custodian for direct property funds  
  • “Responsible Entity” (for retail funds)
  • Trustee (for registered and unregistered property funds with wholesale or institutional investors);
  • Custody
Holds assets and executes related documentation.

Executes related documentation as the owner of record of the assets.

Maintains bank accounts and makes payments as required for the operation of the trust.

Provides annual audit reports on internal controls and compliance with regulatory requirements.
  • Holds the necessary licences, authorisations and complies with ASIC and other legal requirements. Has the ability and experience to act as a Managed Investment Trust (MIT) and Attribution Managed Investment Trust (AMIT) Trustee.
  • Provides separate group entities to perform the functions of sub-Trustee, Custodian or sub-Custodian (as required by a particular structure).
  • Holds indicia of title to assets as a party independent of fund managers. 
  • Assists the fund manager by executing lender documentation as the owner of record of assets securing borrowings. 
  • Makes payments as requested by the fund manager and enhances investor confidence by controlling the bank accounts.
  • Provides a robust compliance framework independent of the fund manager.
 Escrow Agent
 Escrow of “restricted shares”:

Escrow of cash, bank guarantees / other assets: usually holds funds deposited for a period of time by an intending purchaser until a specific transaction is competed to the satisfaction of both the purchaser and the vendor. 

If the transaction does not proceed the Escrow Agent returns the funds to the purchaser, if it does, pays them to the vendor.
Assets can range from real estate, industrial equipment, shares and intellectual property.
  • Assurance that ‘restricted shares’ – usually “vendor shares” - are escrowed for varying periods according to the Listing Rules of the ASX.
  • The escrow arrangement facilitates transactions between parties by      introducing certainty that the buyer’s intentions are serious and that the vendor will not sell the asset in question before the buyer has completed its due diligence and finance (if required).
  • Negotiating power with all the major banks for favourable deposit rates.
  • Must be directed by both the buyer and vendor thus providing confidence for both those parties that their respective expectations in the transaction will be safeguarded.
Examples of where we act as Escrow Agent;
  • The purchase of an Australian enterprise by foreign entities 
  • The sale of local distressed assets to a foreign buyer by an external administrator
  • The holding and distribution of disputed share portfolio controlled by a liquidator.
Security Trustee for financiers
Holds PPSA security over the assets of a borrower entity on behalf of lenders.
  • Accepts and releases security at the financiers’ direction
  • Enforces security rights at the financiers’ direction