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Financial promissory note

The Financial Promissory Note is intended for:

Legal and physical entities
Clients, who intend to borrow money for a short-term period and those who want to valuate their available financial means.

The Financial Promissory Note characteristics:

The goal of the product is to find a counterparty in the market for the client, who intends to borrow money for a short-term from a partner (investor) which is willing, ready, and able to lend the money. This Investment banking product is from Komerční banka. The bank is the nexus of the transaction, playing the role of the provider and searching for counterparties. The bank collects from both the issuer and the investor a settlement business contract. Thus, the promissory note is the transaction tool, issued by the bank to both the issuer (debtor) and the investor (lender). As a result, the promissory note is transferable and it is issued with the due term from 1 day up to 12 months.
The investor bears the issuer's risk. Komerăní banka announces to the investor only the business name of the issuer. The investor must be a client of Komerăní banka and the issuer must be either a financial institution or a client of Komerăní banka.

If the promissory note remains within the management of Komerăní banka, the bank ensures the following:

Settlement on the date of the business foreign currency,
Settlement on the date of endorsing (if the investor further sells the promissory note),
Automatic presentation at the maturity date and settlement of the promissory note.

The deal is always concluded with the Dealer of the Clients' Services by telephone, while the investor and the issuer receive the confirmation about the concluded business containing the parameters of the transaction for control.

The product has the following modifications:

Program ČEZ

The issuer is ČEZ, a. s. The promissory note is emitted in CZK and the minimum volume of one deal is 20,000,000 CZK. Komerční banka has access to auctions, which are announced by âEZ in order to get the financial means by the issuing the financial promissory notes. The bank can, during the auction, present a bid to the client. The investor_s order is accepted by the Dealer of clients' Services. Because of the nominal values of the promissory notes sheets, the client bids must be multiples of 5 mil. CZK. This bid can remain unsatisfied or can be shortened (again in multiples of 5 mil. CZK) – as per the result of the auction.

STE Program

The issuer is STE, a. s. The promissory note is emitted in CZK and the minimum volume of one deal is 1,000,000 CZK. Komerční banka has access to auctions, which are announced by STE in order to get the financial means by the issuing of their own financial promissory notes. The bank can, during the auction, present a bid to the client. The investor_s bid is accepted by the Dealer of clients' Services. If Komerční banka accepts this order, it sells the promissory note to the client for the price which the client offered in the bid.

Different issuers program

The promissory note can be issued especially in the following currencies: CZK, EUR, USD. The minimum volume of one deal is 20,000,000 CZK or the valent of the sum in other currencies in which the promissory note has been issued.

Own financial promissory note benefits:

For the issuer:

Automatic settlement at the date of the foreign currency and the maturity date of the deal (conditional upon the promissory note management by Komerční banka),
Access to financial means upon the known interest and the accuratelydetermined maturity term,
The concluding of the deal by telephone.

For the investor:

Automatic settlement at the date of the foreign currency and the maturity date of the deal, possibly on the endorsement date (if the investor further sells the promissory note) – conditional upon the promissory note management by Komerční banka,
Free-of-charge automatic presentation of the promissory note on the due date - conditional upon the promissory note management by Komerční banka,
Valuation of the available financial means, which corresponds to the rating of the íssuer on the financial market, the interest and the payment term are known in advance,
The concluding of the deal by telephone.

The Financial Promissory Note will allow you to:

If you are the issuer:

Flexible management of short-term financial means via the promissory note program,
Financial means obtained for fixed interest,
The possibility of the back purchase of the promissory note by the issuer – settlement of the obligation before the promissory note due term without sanctions.

If you are the investor:

The deposit of available financial means on relatively safe assets,
A reward in the form of fixed interest, which is higher than the interest of the deposit products,
The carrying-out of business of the bill of exchange receivable by means of endorsement.

If you wish to learn more about this product or order it, please contact your Relationship manager or call the free KB Infoline 800 111 055.