Bond Issues

Bond Issues

Bond issue is one of the most efficient instruments to acquire external funds. Bond issue arrangement includes preparation, registration, promotion and arrangement of IPO and secondary offerings. Arrangement of the bond issue takes 3 to 4 months on the average, from preparation to initial offering.

Advantages of Bond Issues

• Acquisition of short and mid-term funds
• Independent management of the debt structure
• Attraction of a wide range of investors
• Growing demand of other securities of the company
• No collateral required
• Improvement of public credit history
• Reduced cost and extended periods of further public borrowings

Absolut Bank offers its customers a full range of bond issue services – from developing a borrowing concept and preparing issue documents to supporting liquidity of the customer's securities on the secondary market.

Standard Terms

Absolut Bank can act as Arranger, Underwriter, Facility Agent, Market Maker.

Standard Investor Requirements

• Strong corporate culture
• Information transparency
• No corporate conflicts
• Administrative transparency

• Transparent intentions of the issuer as to the funding purpose and repayment sources
• Transparent funding purpose supported by a clear business plan with clearly defined investment targets and payback periods
• Clear sources of financing current operations of the issuer and repayment until maturity

• Minimum amount
• To ensure the minimum liquidity on the secondary market, the required bond issue should be at least RUB 500 million.
• A sound and liquid secondary market requires a bond issue of at least RUB 1 billion.

• The bond issue must not exceed 30% of the issuer's revenue.

• Redemption payments must not exceed the issuer's profit before tax as of the offering date.

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