Yep, it is crystal clear bondholders may lose all of their investment,
From bond website.........
Particular Risks
The Projects' main assets are commodity resources. Relentlessly depressed commodity prices could limit profitability and result in a loss.
A weak oil price and a weak US Dollar could compound such an event at any point in time. Conversely, in balance, a strong oil price and a strong US Dollar may have the opposite effect. Equally whilst commodity prices remain in US Dollars movement in Peruvian currency may have an impact.
Whilst the project companies may hold extensive arrays of risk insurance policies, commercial risks of total or partial loss for whatever reason may not be covered under such policies in exceptional events for whatever unforeseen reason. Non-payment of insurance premiums would also likely render any such policies void in any insured event of claim.
The ability for the Bond Issuer to repay capital and interest is based upon the project company borrowers repaying. Insolvency of a project company borrower may result in reduced, delayed or no payments.
In the event of the insolvency of any of the project borrowing companies and an eradication of the value of the main security assets for whatever reason, a partial or total loss could occur.
Changes in legislation or the relationships between countries can or may change over time affecting the business overall, this could have an impact if such relationships changed and were not in the best interests of the project borrowing companies or the Bond Issuer.
The Bond Issuer and the project companies conduct transactions in a broad range of currencies, currency exchange rates may impose a risk of partial losses to the project companies in unforeseen adverse circumstances.
Financial Services and Markets Act 2000 – NOTICE
Exemptions and Suitability
PROSPECTIVE INVESTORS & TRUSTEES / NOMINEES MUST READ THE BELOW NOTICE AND CONFIRM THEIR UNDERSTANDING AND ELIGIBILITY BY SIGNING THE BOND PURCHASE FORM.
The content of this communication, and any promotion it contains or refers to, has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested.
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