Etterbeek’s municipal bond
A public daycare in Etterbeek
€1,199,000
total amount raised in round
- Backed by over 80 investors
This campaign ended
Type 1 – Project risk
Risk: Construction of the nursery is currently underway and the opening is currently scheduled for February 2026. However, construction may suffer delays.
Consequence: The occurrence of this risk could - in theory - impact the repayment capacity and schedule. In this case however, reimbursement is provided for in the local government's budget and the occurrence of this risk would only impact subsequent projects.
Consequence: The occurrence of this risk could - in theory - impact the repayment capacity and schedule. In this case however, reimbursement is provided for in the local government's budget and the occurrence of this risk would only impact subsequent projects.
Type 2 – Sector risk
Risk: There is a risk that the price of raw materials will rise relative to today's forecasts.
Consequence: If raw material prices rise, the difference will be financed by bank loans. This will have no impact on the construction of the nursery but could affect ETTERBEEK's budget for future projects.
Consequence: If raw material prices rise, the difference will be financed by bank loans. This will have no impact on the construction of the nursery but could affect ETTERBEEK's budget for future projects.
Type 3 - Risk of insolvency and bankruptcy of the project owner
Small risk.
As a regional authority, the general financing of the municipalities is implemented through two allocations regarding mandatory general financing and a third regarding contractual general financing.
Under no circumstances may the municipalities' expenditure and revenue budget show an ordinary or extraordinary deficit or a notional balance or surplus. If the revenues included in the budget are insufficient to pay a recognized and due debt of the municipality or if that debt results from a final decision of the administrative or judicial courts, the municipal council shall propose the means to recover that debt.
If the budgeted revenues are insufficient to pay a recognized and due municipal debt or a debt resulting from a final decision of the administrative or judicial courts, the municipal council shall propose the means to clear it. (Art. 258 New Municipal Law)
The default of a municipality is allowed only in exceptional circumstances.
Type 4 - Risk of lower, delayed or no returns.
Risk 1: The loan issued by ETTERBEEK does not guarantee a return or repayment of the loan.
Consequence: If ETTERBEEK fails to meet its payment obligations, the investor has no direct legal claim to ETTERBEEK's assets. However, the risk of ETTERBEEK defaulting on its payment obligations is only theoretical.
Consequence: If ETTERBEEK fails to meet its payment obligations, the investor has no direct legal claim to ETTERBEEK's assets. However, the risk of ETTERBEEK defaulting on its payment obligations is only theoretical.
Risk 2: A government is currently being formed and it is possible that the new government may decide to make changes to the loan tax regime. Consequence: Such a regulatory change may cause investors' net return to differ from the current target return, either positively or negatively.
Type 5 - Risk of failure of the financing vehicle
Risk: There is a risk of cybercrime affecting the platform, or another IT-related problem leading to (temporary) non-functioning of the platform.
Risk: There is a risk of cybercrime affecting the platform, or another IT-related problem leading to (temporary) non-functioning of the platform.
Consequence: Should the platform be temporarily or permanently unable to provide its services, subscriptions previously made remain valid. In addition, SPREDS has procedures in place to ensure the continuity of critical services. The probability of permanent failure of SPREDS is very low.
Type 6 - Risk of illiquidity of the investment
Risk: The loan does not provide for early repayment.
Consequence: Investors will not receive repayment of the capital invested until the loan matures. However, the loan is concluded for a short term, namely 18 months.
Consequence: Investors will not receive repayment of the capital invested until the loan matures. However, the loan is concluded for a short term, namely 18 months.
Type 7 – Other risks
Risk: SPREDS has not conducted an analysis of the proposed project.
Consequence: Any investor considering subscribing to the loan should make its own analysis of ETTERBEEK’s solvency, activity, financial situation and prospects.
To the best of the project owner's knowledge, there are no other material risks associated with its activities.
Consequence: Any investor considering subscribing to the loan should make its own analysis of ETTERBEEK’s solvency, activity, financial situation and prospects.
To the best of the project owner's knowledge, there are no other material risks associated with its activities.