In which situations does it make sense to issue a small and medium-sized business bond? What needs to be taken into account in its implementation? What are the risks, and how will the market develop? These and other questions are answered in the new study "Bonds for small and medium-sized businesses," which was presented at a press conference in Frankfurt today.
Since last year, numerous small and medium-sized companies have obtained funding by means of bonds - a tool that had previously only been available to large corporations. Thus an interesting addition to bank lending has opened up for small and medium-sized businesses. The conditions for bond issues, however, have distinctly deteriorated in recent weeks and months: bonds are no longer selling themselves, investors are becoming more cautious, requesting covenants and higher risk premiums.
"We are observing a change in bond conditions, due to market requirements," explained Dr. Mirko Sickinger LL.M., lawyer and partner at Heuking Kühn Lüer Wojtek in Cologne. "Covenants, standardized investor protection clauses, are taking into account the interests of investors in risk reduction associated with small and medium-sized business bonds."
The study was conducted by FINANCE on behalf of youmex in cooperation with Mazars and Heuking Kühn Lüer Wojtek. FINANCE led twenty in-depth interviews with financial decision-makers from small and medium-sized businesses, bond issue advisors, credit rating agencies, classic small and medium-sized banks, lawyers, investors and auditors.
If you are interested in obtaining a copy of the study "Bonds for small and medium-sized businesses," please contact us.