Why Issuing Bonds?

The first reason for issuing bonds is that you get no dilution of the share capital. You keep control of the capital of your company for the duration of bond financing.

Secondly, borrowing can increase shareholder returns, because the interest on debt is lower than the return on the project. In other words, that will increase the leverage.

The other significant reasons of issuing bonds include the following:

Less frequent payments – Coupons are typically paid every three, six or twelve months depending on the bond. This may be more flexible and convenient for the issuer compared to a bank loan which requires monthly increase payments.

Fixed Interest rate – The interest rate can be fixed by issuing a fixed rate bond. In this way, if interest rates increased, the issuer has locked in its interest rate.

Flexibility – The Issuer can choose how often coupons are paid, the term, whether the coupon rate is fixed or floating and the type of embedded options.

Credibility – Management of all financial flows will be provided by a reputable banking institution in Switzerland.

What are the main Bonds type issues?

Swiss Financial Company & Trust SA issues bonds with AAA rating (the highest commercially available) with a specialized insurance company – AAA rating guarantees payment flows and a cost that is paid to the booster. Triple A bond results in increasing the attractiveness of the transaction to investors.

Important: We issue Bonds with ISIN (International Securities Identification Number).

On our professional behalf is dealing with :

• Vanilla Bonds


• Convertible Bonds


• Zero-coupon Bonds


• High-yield Bonds


• Callables Bonds


• Puttable Bonds


• Fixed-rate Bonds


• Bearer Bonds

What is the Price of Issuing Bonds?

The Price is 0,85 CHF (CHF 85`000) of the total amount of bonds issue, CHF 10`000`000 minimum.

Swiss Financial Company & Trust SA provides our global and high-net worth clients with Preparation of prospectus, term sheet, bond structuring, data sheets, company brochure development; Design requirements, issuance of security papers, printing and numbering of the bonds; Allocation of ISIN and custody bank accounts for administrative management of coupon payments, etc.

What are the main steps of Issuing Bonds Process?

Swiss Financial Company& Trust SA assists you through all legal procedures for issuing bonds. We write a bond term sheet and the prospectus in accordance with your project and Swiss market regulations, and we print the Swiss bonds after they have received an ISIN number.

When the agreement is signed, we charge 0, 85% of the total amount of bonds issue for the following legal procedures:

• Analysis of investment project and risks, legal and financial setup


• Analysis of profitability of Company intended to be financed through issuing Swiss bonds, analysis of investment project and risk of signature, analysis of financial and mathematical management of financial flows, interests, coupons, refund of the bond`s principal


• Setup of issuing bonds according to effective legal and technical aspects in Switzerland. Drawing up of the bond issue prospectus, setup of tranches, preparation of papers for issuing bonds and Company booklet


• Concepts of issuing bonds, choice of a secure paper of bonds, printing and numeration of bonds


• Issue of ISIN code and deposit in a bank for back office managing coupons payments


• Writing of various legal and technical application forms


• Concepts of graphs and tables of financial flows from issuing Swiss bonds for customers, concepts of papers for issuing bonds

Timing

Swiss bonds are issued within two months.

SFC & Trust SA handles the entire legal process of assembly and distribution of Bond Financial Business in Swiss and International markets. We study the cases for bonds from CHF 10'000'000.

SFC & Trust SA is able to set up the Bond Issue and help with Distribution of the bonds on primary and secondary markets according to Swiss Law and regulations.

What do you need to pass Due Diligence Process for Issuing Swiss Bonds?

Please, check the list of Essential Documents for Issuing Bonds:

1. Extract of the Register of Commerce and state of publications (privileges, mortgages, collateral security)


2. Minutes of the General Assembly (the yearly three last ones)


3. Projects of resolutions and minutes of the extraordinary General Assembly having authorized the Board of Directors and Executive Board to issue bonds


4. Status of the Corporation, before and after the General Assembly


5. Shareholders` agreement and other parts if necessary


6. Curriculum vitae and original of criminal record of the Executive Board


7. State of contracts of insurance


8. State of litigations


9. State of protection of patents, trademarks and certificates of quality


10. Specific papers for each file (important contracts, commercial agreements…)

1. Financial state and complete additional papers for the three last years


2. Report of a certified auditor for the three last years


3. Biannual situation, attestation from a certified auditor


4. Professional elements and/or pro forma if necessary, and attestation from auditors


5. Guarantees brought in the operation, complete presentation and information of the collateral

1. Provisional schedule of the operation


2. Presentation of the project or activities of the issuer


3. Documents related to all operation of merger occurred over the two years preceding the issuance (contract of merger, inventory of merger, and report from auditors)


4. All reports of professional Due Diligence drawn up within the framework of the project offer to the public


5. Press review of the issuer


6. Business plan


7. List of all operations related to the capital of the corporation


8. Obtaining a VISA for the issue of securities, and date for obtaining VISA of the issue


9. Drafting of the legal and technical document for the issue (prospectus and term sheet of the bond issue complied with the international standards)

Please, find out more information about Swiss Bonds Issue.

If you have any questions on a Bond Issuing Process, please contact us or use our online form. We will be happy to assist you.