Promissory notes are transferable.
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Both the investor the issuer receive a confirmation with transaction parameters.
For your safety and convenience we will hold the promissory notes in custody.
Promissory notes are available to you as an issuer (debtor) or investor (creditor).
The bank only enters the transaction as an intermediary matching suitable counterparties.
About Promissory notes issuance programmes
- Promissory notes are issued by Komerční banka in the name of an issuer (debtor) for the benefit of an investor (creditor). The investor assumes risk of default of the issuer’s.
- Promissory notes allow the issuers to raise financial funds at fixed interest rates, thereby flexibly manage their short-term finances
- Investors can benefit from safe investment option. The interest is fixed and derived from the issuer’s credit rating.
- Bank only provides an investor with the name of the issuer
- Investor must be a client of Komerční banka
- Issuer must be a client of Komerční banka
Promissory notes are transferable, with maturity of 1 to 12 months, and can be deposited in the custody of Komerční banka; in this case, the bank ensures:
- Settlement as of the value date
- Settlement as of the endorsement date (if and when investors resell promissory notes)
- Presentation as of the maturity date, with subsequent promissory note settlement
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Benefits of promissory notes
- Automatic settlement on the value date and maturity date through the custody accounts held with Komerční banka
- Access to funding at a predefined interest rate and predefined maturity
- Automatic settlement on the value date, maturity date or endorsement date (if and when investors resell promissory notes) through the custody accounts held with Komerční banka
- As a custodian we will present promissory notes on your behalf to the debtor on the maturity date
- The promissory note interest corresponds to the issuer’s rating, interest and maturity are known in advance
- For issuers:
Important information for you
- Transactions involving promissory notes may have certain tax implications including, but not limited to value added tax issues. We advise clients to consult the matter with their tax advisory prior to the entering into the transaction
- The investors bear risk of issuer’s default