Bond Issues

Bond Issues

In addition to bank loans, companies can also borrow by issuing bonds. Bond issuance is a capital market instrument and the first step is to obtain permission from the main authority, the CMB. After the approval of the CMB, negotiations with portfolio management companies are made and the bond is sold to the institutional investors.

By issuing bonds, companies diversify their creditors and obtain a loan with a low cost and principal payment at maturity. In bond issuance, it is not possible to recall the loan, to give collateral-pledge-mortgage, and in this sense, it provides significant advantages over bank loans.

Completion of the CMB authorization process and preparation of Bond information memorandum demanded by portfolio management companies are among our main services. In addition, meetings are held with portfolio management companies and the company gets the opportunity to explain itself to investors.

By issuing bonds, companies establish the first contact with capital market institutions and investors for their future public offering. In addition, since there is an alternative to banks, bank loan costs may decrease after the process.