Bonds

Utilise bonds for long-term finance needs

Bonds are suited for companies and corporations that want to obtain marketable long-term finance. Issuers have mostly been the government, municipalities, banks and large companies.

A bond is arranged either as a public issuance, in which case it is listed on a stock exchange, or as a private placement, in which case it is sold to a limited number of investors. The minimum size of a publicly listed individual bond is 3.5 million euros.

The amounts of bonds vary greatly and are usually from 10 million euros upwards. The maturity is usually 10 years at the most. The interest is variable or fixed and it is usually paid annually in arrears.

Benefits to your company

• The issuer’s finance base broadens and the issuer becomes better known among investors.
• The issuance of a bond does not usually require security.
• Bonds enable various financing arrangements and the current market situation can be utilised.