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Bond issue
The issue of bonds is designed for:
- large and edium corporates
- municipalities, public administration bodies
- the government
Characteristics of bond íissues:
The primary bond issue is a standard form of medium-to-long-term financing for company, bank, and municipal or government activities through the capital market. Komerční banka provides services connected to the issue of corporate, municipal and government bonds up to a value of CZK 10 billion.
KB offers a complete client service for primary issues, including:
- consulting in the preparation of the bond issue
- complex preparation of the bond issue
- possibility of underwriting of the entire volume issued
- placement of newly issued securities on capital markets
- arranging the payment of yields from securities and their repayment
- listing securities on the Prague Stock Exchange
KB also provides consulting services in the optimization of cash flows and capital structure directly related to the given issue transaction. Komerční banka also assumes a large part of the responsibility for marketing of the issue in the placement process with investors.
Benefits of issuing bonds:
- diversification of investor base – by entering the capital market, the potential issuer taps into a wide investor base, thereby markedly increasing its chances of acquiring the required capital
- typically the principal is not due until bond maturity
- possibility of repeat entry onto the capital market – a successful issue of bonds creates a favorable base for the issuer (a so-called benchmark) for further issues on the capital market
The issue of bonds allows you to:
- Finance company or municipal development/expansion
- Refinance existing financial obligations
- Acquire alternative sources of financing
How can I obtain this product?
If you are interested in learning more about this product or if you would like to apply for this product directly, please contact your bank advisor or call the KB toll free line 800 111 055.
