Corporate bond issuance

Corporate bond issuance is an alternative instrument for getting inexpensive resources for extended lengths of time.

Main advantages:

  • no security and, as a result, low costs of issuance comparing to receipt of a loan (no need of real property inventory in BTI and legalization of replanning, notary certification of a mortgage agreement and insurance of subject to mortgage).
  • creation of public loan history of supplier. As a rule, the company is granted a loan in several banks, that is why it is quite popular locally. When the company issues bonds, it becomes known among members of financial services market in Ukraine (publishing information in mass media, presentation of issuance). Creation of positive public loan history has an impact on cost of the company and also it is the first step to issuance of IPO.
  • flexible management of money involved. Unlike loan, emitent of bonds is entitled to review bond interest rate (within the time periods specified in prospectus for bond issue).
  • the longest period for resource utilization comparing to loan (from 3 to 5 years).
  • payment of interest is every three months, but not once a month as by the loan. For historical reasons coupon period by bonds of Ukrainian emitents is 91 day. So, emitent saves working capital and pays interest every 91 day instead of every 30 days, as by the loan.


Administration of investment business: tel.: (044) 205-41-95, (044) 205-41-80
Е-mail: VZapotochniy@agrocombank.kiev.ua