Secured Bonds Issue

Who uses bond issues?

Bonds are a useful way of financing commercial companies and their projects. They are suitable for companies that, for example, need to settle with members, finance acquisitions or development, buy real estate or technology, etc.

Bonds may be issued by issuers as unsecured or secured. You will find in-depth information about unsecured bond issues here.

In which ways is it possible to secure obligations from bonds?

The obligations from bonds can be secured in the following ways, for example:

• security in the form of the declaration of security of the owners of the issuer or third parties (holding parent, owners - natural persons, third parties, etc.)
• security interest in real estate (land, buildings, housing units)
• security interest in movable property (machines, production equipment, collections, etc.)
• transfer of rights to movable or immovable property as security of obligation aval

Who is the security agent?

The security agent is a legal or natural person that accepts the coverage of bonds on its own account for the benefit of the owners of the bonds. Should the issuer default, the security agent guarantees the execution of coverage and its settlement, for example of security interest, for the benefit of the owners of the bonds. The security agent should be a trustworthy, and best of all regulated, person, such as a securities dealer, notary, lawyer, auditor, etc.

What will we do for you?

• we will recommend a suitable form of bond issue for you (public below-the-threshold, private, with prospectus; secured or unsecured)

• we will assign a project manager to you, who will guide you through the whole process and will regularly update you
• we will advise you on the setting of specific parameters of the issue according to our practical experiences with clients
• we will arrange the LEI for the issuer and ISIN for the bonds at the Central Securities Depository (CDCP)
• we will compile the terms and conditions of issue in accordance with the Act on Bonds in force at that time
• we will prepare a contract with the security agent
• we will compile coverage documentation, for example pledge contracts
• we will prepare a contract on the subscription of bonds (contract with investors)
• we will propose the wording of certificated bonds
• in case of dematerialised bonds, we will ensure the dematerialisation 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 inform you of the possible ways of offering bonds to end investors and subscribing

• we will provide you with a precise guide (structured procedure) for working with bonds, meaning that each and every employee at the company will be able to work with them

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