In addition to bank loans, companies can also borrow by issuing bonds. The issuance of bonds is a capital market instrument and the first step is to obtain permission from the main authority, the CMB. After the permission of the CMB, negotiations with portfolio management companies and the sale of the bond to these institutional investors are carried out.
By issuing bonds, companies diversify their creditors and obtain a low-cost loan with the principal payment at maturity. In the issuance of bonds, there is no call back of the loan, no collateral-pledge-mortgage, and in this sense, it provides significant advantages compared to bank loans.
Completing the CMB permit process and preparing the Bond Issuance Presentation requested by portfolio management companies are among our main services. In addition, meetings are held with portfolio management companies and the company is allowed to explain itself to investors.
With the issuance of bonds, companies establish the first contact with institutions and investors in the capital markets for the future public offering of shares. In addition, as an alternative to banks is created, bank loan costs may decrease after the process.