Financing

Debt Securities Issues

Debt Securities Issues

Financing in capital markets, as an alternative to bank loans

Debt Securities Issues

Financing in capital markets, as an alternative to bank loans

Issuance of debt instruments (Debt Instruments) is a relatively simple source of financing for ongoing operations and/or investments, as an alternative or supplement to a bank loan. Issuers of Debt Instruments are usually blue chip companies generating low credit risk. Redemption of Debt Instruments may also be guaranteed by a high-rating company, e.g. parent.


The most important features of the product

Issuers of Debt Instruments acquire financing directly in capital markets in:

  • a single issue of Debt Instruments; or
  • multiple issues under Debt Instruments programs

Companies usually opt for a Debt Instruments program under which they place in the market subsequent issues with diverse amounts and maturities. Citi Handlowy acts as the Program Lead Manager, which prepares the structure of the program, documentation and information materials of the issuer, and also as the Dealer, which distributes the Debt Instruments in the primary market and organizes trade in the secondary market, the Payment Agent and the Depository.

Debt Instruments (commercial papers) with maturity up to 1 year are usually offered at discount while Debt Instruments (bonds) with maturity longer than 1 year are usually interest bearing bonds with a floating or fixed interest rate.

Bonds

Bonds and commercial papers are issued under the Bonds Act of 1995. They may have various structures and maturities to reflect the issuer’s demand for financing and the situation in the financial market.

Bank securities

Bank securities (Certificates of Deposit) are only issued by banks under the Bank Law of 1997. They have different structures and maturities, adjusted to the issuer’s needs and the demand for it’s debt instruments in the market.


Are you interested in our offer?

Please contact us on the following numbers:

+48 (22) 657 74 51
+48 (22) 690 16 57
+48 (22) 657 79 60
+48 (22) 657 72 15

The cost of the call depends on your local service provider.

Benefits

  • financing is acquired in capital markets
  • financing is ensured on less rigorous terms and conditions as compared with bank loans
  • lower financing costs as compared with bank loans
  • diversified sources of capital
  • flexible financing – especially for short-term Debt Instruments in the over-the-counter market, the minimized issue procedure, the amount and maturity adjusted to the current needs of the issuer
  • “marketing effect” resulting from the issuer’s presence in capital markets