Public Bond Issues - Key Factors
With a public bond issue large financing volumes, a high degree of publicity and a broad diversification of the funding base can be achieved. Compared to a loan or promissory note public bonds are more complex financial transactions due to the more extensive documentation inlcuding prospectus and the need for investor relations activities. As a leading arranger of bond issues WestLB AG takes intensive care of research reports, the organisation of roadshows and meetings with potential investors as well as the whole bookbuilding process.
The key factors of a bond issue are volume, currency, tenor, interest rate (fixed or floating) and the spread to be paid over a predefined benchmark. Furthermore, the following factors play an important role as to marketing a bond transaction successfully: rating, investors, preparation, credit research, sales story, timeframe and documentation.
Your advantages at a glance:
- Long- and medium-term financing via the capital markets
- Diversification of funding resources - largest investor base possible
- Liquidity management
- Ideal funding tool to achieve independence from banks
- Attractive conditions for issuers with name recognition and good rating
- Large volumes (from 150 mn Euros)
- Extensive publicity