How should a company prepare for a bond issue? How and on what terms to place them to attract investors and obtain borrowed funds? About the nuances of issuing debt securities, on the Forbes Expertise business community platform, IEK GROUP Financial Director Mikhail Gorbachev shared insights.
He noted that approximately until 2010, the company developed mainly using its own funds. After that, within the framework of active development, the use of credit instruments began.
"At the same time, the emphasis was on the most effective instruments, such as non-recourse factoring and letters of credit with constant financing. And, of course, classic credit products - revolving and non-revolving credit lines, overdrafts," adds Mikhail Gorbachev.
The bond placement was not spontaneous: by the time of entering the Moscow Exchange with the first issue, the company had already been moving along the path to public status for several years.
Almost three years ago, the company successfully debuted in the bond market. Since then, it has already conducted three bond issues. Debt securities have become a noticeable source of borrowed capital for IEK GROUP - currently about 25% of credit funds in the company are obtained through their placement.
Mikhail Gorbachev notes that relationships with investors, especially private ones, who have now become a noticeable force in the Russian debt market, play a huge role for the success of bond placement.