Promissory notes programmes

We arrange short-term loans for issuers of promissory notes and returns on disposable funds for investors.

How may we
assist you?

Issuers may benefit
from short-term loans,
providing investors
with an opportunity
to earn returns on their
disposable funds

Borrow and invest funds for a fixed period and at an agreed rate

Transactions can be conveniently arranged over the phone with our dealer

Settle your liabilities early without any sanctions

Invest and generate returns on your disposable funds

ADDITIONAL BENEFITS

  • Promissory notes are transferable

  • Both investor and issuer receive a confirmation with transaction parameters for review

  • KB will ensure safekeeping of your promissory notes for your safety

  • Promissory notes available with maturity of up to 12 months

How to get this product?

At a branch

Select a branch, leave your contact information – we will call you back.

By phone

Leave it all up to us. Leave your contact information – we will call you back.

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USEFUL INFORMATION

  • Promissory notes are issued by Komerční banka in the name of an issuer (debtor) to the order of an investor (creditor) - the investor assumes risk of issuer’s default  
  • By means of promissory notes, an issuer receives financial funds at a fixed interest rate and is able to flexibly manage its short-term financial funds
  • Investors have an opportunity to invest their disposable funds in relatively safe assets – with returns corresponding to the risk, taking into account debtor’s credit risk and rating – and at a fixed interest rate
  • The bank only notifies the investor of the issuer’s trade name
  • Investors must be KB clients
  • Issuers must be KB clients
  • Promissory notes are transferable, with maturity of 1 to 12 months. Komerční banka can ensure safekeeping of promissory notes, handling the following:
    • Settlement as of the value date
    • Settlement as of the endorsement date (provided investors resell promissory notes)
    • Automatic presentation as of the maturity date, with subsequent promissory note settlement  
  • Transactions involving promissory notes may have certain tax implications including, but not limited to value added tax issues. We advise clients to discuss the matter with their tax advisors prior to executing the given transaction
  • Investors bear the risk of issuer’s default (issuer fails to fulfil its liabilities upon promissory note maturity)

For issuers:

  • Automatic settlement as of the value date and maturity date (subject to safekeeping of Komerční banka)
  • Access to funding at a predefined interest rate and fixed maturity

For investors:

  • Automatic promissory note settlement on the value date, maturity date or endorsement date (provided investors resell promissory notes) - subject to safekeeping of Komerční banka
  • Free automatic presentation of the promissory note as of the maturity date - subject to safekeeping of Komerční banka
  • Returns on disposable funds – corresponding to issuer’s financial market rating; interest rates and maturities are known in advance

You can take advantage of promissory notes as an issuer (debtor) or as an investor (creditor). The bank only arranges transactions as an intermediary, matching suitable counterparties.