Bond Offer
Issuing bonds is one way for companies to raise money. A bond functions as a loan between an investor and a corporation. The investor agrees to give the corporation a certain amount of money for a specific period of time. In exchange, the investor receives periodic interest payments. When the bond reaches its maturity date, the company repays the investor.
The decision to issue bonds instead of selecting other methods of raising money can be driven by many factors. Comparing the features and benefits of bonds versus other common methods of raising cash provides some insight. It helps to explain why companies often issue bonds when they need to finance corporate activities.
The decision to issue bonds instead of selecting other methods of raising money can be driven by many factors. Comparing the features and benefits of bonds versus other common methods of raising cash provides some insight. It helps to explain why companies often issue bonds when they need to finance corporate activities.
SNo. | Bond Number | Attachment |
|---|---|---|
1 | BOND;ISIN;CH0493466640 | |
2 | BOND;ISIN;US44954GAA67 |
Key Takeaways
- When companies want to raise capital, they can issue stocks or bonds.
- Bond financing is often less expensive than equity and does not entail giving up any control of the company.
- A company can obtain debt financing from a bank in the form of a loan, or else issue bonds to investors.
- Bonds have several advantages over bank loans and can be structured in many ways with different maturities.
