Sell debt on the open market
Bonds are fixed-income securities, issued by companies to raise capital for investments. This means that the interest paid is fixed at the time the bond is offered for sale. Bonds can be short-term (less than a year) or long-term (up to 30 years or more). Generally speaking, the longer the term, the higher the interest rate the issuing company has to offer.
There are several reasons why a company might issue bonds:
- They do not dilute the value of the company’s shares, additional equity issues
- They require fewer covenants than bank loans
- They have a large investor base, as investors see bonds as less risky than more volatile investments
Issuing a bond is a complicated process and requires advice on the marketplace, the possible issuing price and the documents needed for filing.
Our Corporate Finance & Capital Markets specialists help you set the terms of the bond and underwrite the sale by buying the issue or by taking the lead in forming and managing a syndicate. In cooperation with other financial institutions, we then offer the bond for sale on the financial market.