Bond issue

Bonds are an effective tool for companies and projects that they are financing. Since 2012, when obligations to have bond issues approved by Czech National Bank ended, the amount of bond issues increased significantly, especially in the area of private corporate bonds.

Bonds can be seen as approved loans issued as a security. Bonds legal rights are specified in issue terms and conditions and have to be available for investors at the latest when bond is subscribed.

The issue of bonds is regulated by the Act on Bonds. In special cases it can be regulated by Business Corporations Act. Public offering, which is usually associated with prospectus for an issue of debt securities, is regulated by the Act on Capital Market. For assurance that bonds are issued in a legal way it is advised to have every bond and its issue assessed by experienced legal advisors. Our legal office has already dealt with numbers of corporate bond issues in Czech Republic and Slovakia.

Please have a look at our bond issue references.

References

Bond issue procedure

  • Consultation with the issuer
  • Finding suitable parameters of issue
  • Development of issue terms and conditions in accordance with the Act on Bonds.v
  • Documents preparation for approval of the bond issue by the General Meeting
  • Contracts for subscription
  • Power of attorney for book entry of depositing financial instruments in Central Securities Depository (CSD)
  • List of bond owners
  • Setting method of bidding and subscription of bonds to end investors
  • Depositing of bonds