Photo by Adeolu Eletu on Unsplash
As a publicly traded company, including over-the-counter and listed companies, issuing corporate bonds is an essential means of raising funds and a financial tool for financial executives. When issuing corporate bonds, the CFO must carefully consider qualifications restrictions, differences between secured and unsecured corporate bonds, and the potential buyers of the bonds to ensure that the company can maintain a financially sound development.
First, qualifications restrictions are critical when issuing corporate bonds in Taiwan. In the past, only publicly traded companies and companies that met the corresponding legal and regulatory requirements, including securities laws and corporate laws, were allowed to issue corporate bonds to ensure the legal and regulatory compliance of the bond issuance. However, this requirement has been lifted, and non-publicly traded companies can issue bonds only through private placement. The CFO needs to ensure that the company has the qualifications to meet the qualifications restrictions and comply with the relevant laws and regulations to ensure a smooth issuance of corporate bonds.
Secondly, the differences between secured and unsecured corporate bonds must also be considered when issuing corporate bonds. Secured corporate bonds typically provide corporate assets or other assets as collateral to reduce investors’ risk, which may result in a lower interest rate. On the other hand, unsecured corporate bonds do not provide collateral and generally require higher interest rates. The CFO must choose the appropriate type of corporate bond based on the company’s funding needs, the feasibility of collateral assets, and the company’s financial condition to achieve the optimal financing effect.
In addition, the potential buyers of corporate bonds are also an essential factor to consider. The potential buyers of corporate bonds typically include institutional investors, individual investors, funds, and other financial institutions. The CFO needs to understand different buyers’ needs and investment preferences and design appropriate bond conditions based on the company’s funding needs and market conditions to attract investors and ensure a smooth issuance of corporate bonds.
EAIC (Eleson Asia Investment Company) can provide companies with comprehensive support and professional advice as a professional financial advisory firm. EAIC’s experienced team can assist companies in designing the optimal structure for corporate bonds, including choosing between secured and unsecured corporate bonds and developing appropriate bond conditions based on market conditions and investor demand to enhance the attractiveness of corporate bonds. Companies can rely on EAIC’s professional team to help ensure that the company has the qualifications to meet the qualifications restrictions and comply with relevant laws and regulations.
Furthermore, EAIC can also help companies effectively communicate with different types of buyers to ensure a smooth issuance of corporate bonds. Through EAIC’s professional services, companies can obtain comprehensive market information, professional advice, and customized solutions to ensure that the company can achieve the optimal financing effect when issuing corporate bonds.
If you want to learn more about our company, please visit our website at https://www.elesonasia.com/