Prospectus of the Bonds

Who approves the prospectus?

Czech National Bank

Who uses the issue of bonds with a prospectus?

Companies that want to make a public bond offering without any limitation to the volume of bonds issued and the manner of publicity.

Type of bond prospectus

A bond prospectus is issued for a single issue and must contain all the information specified by law. This means that 1 prospectus = 1 bond issue.

A base prospectus differs from a standard prospectus in that it is a framework prospectus, meaning that it can be used for various issues. The final conditions of the bonds must be prepared for each issue, these are not approved by the Czech National Bank, they only need to be reported. This means that, for a base prospectus that 1 base prospectus = the option of several bond issues.

An EU growth prospectus is a prospectus for small and medium-sized companies or for companies having up to 500 employees whose public offering does not exceed EUR 20 million over 12 months.

A supplement to the prospectus must always be compiled while the prospectus is valid if a significant new situation occurs or if the issuer discovers a significant error or inaccuracy in the prospectus. For example, when there is a change in control or a change in the focus of the business of the issuer or the issuer is exposed to new risks. Newly-published financial data that were not included in the prospectus are also presented using a supplement to the prospectus.

What will we do for you?

In our office, lawyers AND experienced economists work together. This means that we take into consideration both legal AND the economic matters when preparing a prospectus. The result? A prospectus prepared for you, fast and ready for use. The Czech National Bank thereafter generally only has minor remarks to make during the approval process, which we are able to deal with quickly. A turnkey prospectus means that:

we will consider and recommend suitable setting of the bond issue based on our practical experience with clients (rate of interest, par value, frequency of interest, maturity, etc.)

we will assign a project manager to you, who will guide you through the whole process and will regularly update you
we will compile a complete bond prospectus according to the European Prospectus Regulation, and the terms and conditions of the issue in accordance with the Act on Bonds
we will arrange LEI for the issuer and ISIN for the bonds at the Central Securities Depository (CDCP)
we will arrange the approval of the prospectus in the administrative procedure at the Czech National Bank
we will prepare a subscription contact for the bonds (contract with investors)
we will propose the wording of certificated bonds
in the case of book-entry bonds, we will ensure the book-entry of the issue at CDCP
in case of certificated bonds, we will compile a list of bond owners for you according to the Act on Bonds
we will offer advice regarding the publication of the prospectus on the issuer’s website and permitted forms of publicity according to the European Prospectus Regulation

we will tell you about the possible ways of distributing the issue on the financial market (through an investment intermediary, cooperation with securities dealers, website publicity, etc.)
we will provide you with precise instructions (a structured procedure) for working with the bonds, meaning that each and every employee at the company (issuer) will be able to work with them.

What will we need from you to do all this?

Information about your economic plans, for what purpose the proceeds of the bond issue are going to be used, information about the issuer, etc. You provide us with this information by filling out a short form. Financial statements, verified by an auditor, must also be provided (one or two most recent, depending on the type of the prospectus). We can recommend a suitable auditor if you are interested. We can deal with everything in person, by e-mail, or by telephone.

How long will it take?

The preparation and approval of a prospectus at the Czech National Bank takes approximately 2 months.

Who have we helped to issue bonds with a prospectus?

We have prepared the issue of bonds with a prospectus for the development and investment company Moravská stavební - INVEST, a.s., for the developers ČESKOMORAVSKÁ NEMOVITOSTNÍ and Realitní fond Praha, for the forestry company WOOD SEEDS, for the nanotechnology company AG CHEMI GROUP, for the health food producer KR REAL, and others. We have prepared dozens of turnkey bond issues with prospectus for our clients, and had these approved by the Czech National Bank. You will find other references here.

How much will it cost?

The price depends on the specific requirements of the issue. You will receive a detailed written offer from us following a telephone or personal consultation.