Australian National Proteins' high-risk bond issue 01 June 2015 4:06PM Philip Bayley Australian National Proteins Limited advised the Australian Securities Exchange on Friday that it intended to issue A$50 million of senior unsecured bonds, with a term to maturity of seven years and paying a fixed coupon of 7.5 per cent. The issue is being arranged by ICBC Capital Pty Ltd. Who are Australian National Proteins and ICBC Capital? ICBC Capital appears to have no connection with the Chinese banking giant, Industrial and Commercial Bank of China. In fact, it appears to be a small Perth based corporate adviser that actually trades under the name Komodo Capital Pty Ltd. As for Australian National Proteins (AYB), it has a colourful past. It also has no money. Until 2012, AYB was known as Millepede International Limited, a manufacturer of cable ties. It then decided to change its name and direction entirely. AYB sought to raise $1.5 million of fresh equity to allow it to acquire a company called Agline Pastoral Pty Ltd. Agline specialised in meat production, especially lamb. The equity raising doesn't appear to have been particularly successful but Agline was eventually acquired. However, life was not happy ever after. Most of the board of AYB was turfed earlier this year and the company announced that it intended to broaden its activities to include dairy cattle and fodder cropping. This would have the benefit of reducing reliance on volatile markets to achieve a more reliable cash flow.In the company's announcement to the ASX on Friday, it revealed that the proceeds of the $50 million bond issue would be used to fund the purchase and further development of "five elite irrigation dairy properties" located in Victoria and NSW. AYB's 2014 annual accounts show annual revenues of less $2 million and a loss of $8 million for the year. It also has accumulated losses of $15.6 million, total assets of $2.6 million and shareholders' funds of $2.3 million. AYB's latest interim accounts show it is continuing to lose money and it has wiped out its shareholders' funds. The announcement on Friday included an interesting line, ICBC Capital "...will introduce market leading originator(s) and institutional investors to ensure the allocation and distribution of AYB debt."