Reduce risks and dependencies on banks
Seeking a consistent, long-term funding avenue that lessens your reliance on banks and diversifies your debt channels? Consider bond issuance. Functionally, it’s akin to securing a loan. Opt for bonds when aiming to procure substantial funds over a longer period of time.
Advantages of issuing bonds:
- Broadly defined purpose for raising capital (for instance not only increased liquidity)
- Fixed interest rate defined in the long term
- Greater flexibility in loan collaterals and subordination of debt
- Investor dispersion with standardized communication and conditions
- Maintaining greater liquidity by deferring principal and interest payments
With our assistance, you’ll find a bond structure attractive to investors
The key to success in raising fresh financing by issuing bonds is to design the terms that are attractive to investors from the outset. To this end, we advise and assist you in the optimal structuring of your bond.
Together, we define the following features:
Issue size
Interest rate and method of interest repayment
Maturity date or duration
Number of bonds and the denomination (per item)
Minimum deposit
Payment period
Collaterals
Main risks and financial obligations
Companies most often issue a bond in the amount of EUR 5 to 10 million for a period of 3 to 6 years. The interest rate is usually fixed and the amount depends on market interest rates.
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Informal screening of investor interest (“market test”)
Before incurring any major costs and taking a final decision on whether to issue a bond, we carry out informal checking with potential institutional or individual investors. The market test does not constitute an actual bond offer, but serves as an orientation for the formation of a financial instrument.
- Creating a “teaser”
- Selecting the most suitable investors from our database and informally checking interest
- Updating the terms and structure of the bond, if necessary
Legal and financial execution of the entire procedure
Having completed a successful market test, we carry out the entire bond issuance process, from the preparation of the documentation to communication with investors and regulators and the eventual listing of the instrument on the stock exchange. We advise you throughout the whole process, both from the point of view of issuing the bond and the overall optimization of financing sources.
The process of issuing a bond:
- Step 1: Establishing the basic terms of the bond
- Step 2: Preparation of the offering memorandum (or prospectus – if necessary)
- Alternative: Terms and conditions of the bond issue and Factsheet
- Step 3: Systematic presentation of the opportunity to investors (formal offer)
- Step 4: Deposits via the Equito Platform and customer service
- Step 5: Listing the bond on a stock exchange (optional)
Listing a bond on a stock exchange depends primarily on the requirements of institutional investors, however, for individual investors there are also certain advantages of listing a bond – in particular liquidity, in the sense that the bond is easier to sell.
Digitized bond issuance process
The Equito Platform digitizes the entire bond issuance process and makes it user-friendly. Our platform, together with the support of our Customer Service staff, ensures a seamless investment journey, from registration on the platform to the full transfer of funds.
A typical fully digitized investment process for investors:
- Register on the platform
- Complete KYC/KYB and open an investment account
- Make a transfer of funds
- Choose an investment with all key information in one place
- Sign the subscription form and make the investment
- After completion (or earlier in exceptional cases), investors are registered with CSD.
Equito issues the bonds on behalf of the issuer with the Central Securities Clearing Depository (CSD). Equito transfers the collected funds to the issuer.
Do you have any questions?
Contact us and we’ll get back to you within one business day.
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