Corporate bond issuance

Issue of corporate bonds is an alternative tool for obtaining inexpensive resources for a long time.

Main advantages:

  • lack of collateral and, as a result, the low cost of organizing the issue compared to obtaining a loan (there is no need for real estate inventory in the Technical Inventory Bureau and legalization of redevelopment, notarization of the mortgage agreement and insurance of the collateral object).
  • formation of the borrower’s public credit history. As a rule, the enterprise is lent in several banks and therefore has a local popularity. By issuing bonds, the company becomes known to all participants of the financial services market of Ukraine (publication of information in the mass media, presentation of the issue). The formation of a positive public credit history affects the value of the enterprise and is the first step towards an IPO.
  • flexible management of the cost of funds involved. Unlike a loan, the issuer of bonds has the right to revise interest rates on bonds (within the terms stipulated in the issue prospectus).
  • a long term of attracting the resource compared to a loan (from 3 to 5 years).
  • payment of interest once a quarter, and not once a month, as with a loan. The historically formed coupon period for bonds of Ukrainian issuers is 91 days. Therefore, the issuer saves working capital and pays interest not every 30 days, as on a loan, but every 91 days.

Investment Business Management: phone number: (044) 205-41-95, (044) 205-41-80
E-mail: [email protected]