The development of any business is impossible without sufficient funding. For a long time, financing of enterprises was carried out at the expense of its own funds and bank loans. With the adoption in 2008 of a number of legislative acts of the Republic of Belarus, business entities got the opportunity to use the widely used public borrowing tool in the world - bonds.
The placement of bonds allows a legal entity:
- reduce the cost of borrowing by attracting a wide range of investors and eliminating financial intermediaries from the financing chain;
- increase the terms of borrowing, as the terms of circulation of bonds, as a rule, range from 1 to 5 years;
- create a public credit history, which, in turn, provides an opportunity for the implementation of other ways to raise funds (IPO);
- manage the cost of borrowing by buying back bonds in the market when they are cheaper and selling them when they are more expensive.
JSC Belagroprombank provides the following services for organizing the issue, placement of bonds and servicing of bond issues of legal entities:
- advises the issuer in terms of determining the parameters and terms of bond issues; determining the legal capacity of the issuer to issue bonds; identification of potential guarantor, guarantee, depository; choosing the optimal time to enter the market, etc.;
- prepares a package of documents (Decision on the issue, Prospectus, Brief information about the issue) for the state registration of the bond issue;
- draws up a package of documents for admission of bonds to placement on the stock exchange;
- carries out the placement of bonds on the organized and unorganized markets;
- performs the functions of a paying agent (payment of income, repayment);
- provides custody services to the issuer of bonds.
The combination of all the above functions by the bank enables the issuer to minimize the amount of commission paid and thereby reduce the final cost of borrowing, and the use of an extensive branch network of the bank allows attracting investors throughout the country to participate in the purchase of bonds.
The organization of the issue, placement of bonds and servicing of bond issues of legal entities is carried out on the basis of an agreement for brokerage services for the issuer of bonds.
The amount of remuneration for brokerage services provision.
