Professional Documents
Culture Documents
PROCESS
WHAT ARE BONDS ???
I OWE YOU
DOMESTIC
FOREIGN
EUROBONDS
DOMESTIC BONDS
Fixed interest with fixed maturity claims
Accompanied by PROSPECTUS
Non-resident borrowers
Listing Syndication
Launching,
offering
Role of &closing
IPMA
Offer period
Closing
phase
BIDDING & AWARDING
MANDATE
Issuer fulfil various formalities
Bids called from interested banks/merchant bankers
Launching advertised
through various Invitations sent
media
Underwriters
become
responsible
FLOATATION OF THE
ISSUE
Lead manager tries to gauge
the support
Pricing is determined
OFFER PERIOD
Lead manager organizes sales campaign
explains merits to investors encourages them
PAYING AGENCY
THE TRUSTEE DEED
AGREEMENT
BIBLE
LISTING
Bond issue to be listed at 1 or more stock
exchanges
Additional services
Formation of appropriate bond interest rates
Determination of the duration of the bond
identification of potential collateral owned by the company
which can back the bond
MERCHANT BANKERS AS
UNDERWRITERS
An underwriter is a securities dealer who helps government entities
bring bond issues to market. The key role it plays is to buy the bonds
from the issuer and then resell them to investors. In doing so it
assumes a financial risk and thus expects to make a profit on the
transaction.
Recent Examples
State-run carrier Air India Ltd. has sought bids from merchant
bankers to underwrite a bond sale to raise 74 billion rupees
Reliance Industries is looking to raise up to $500 million by selling
bonds to foreign investors Reliance is said to have appointed
Citigroup , HSBC and Barclays capital as the merchant bankers to the
offering.
CREDITS
RITVIZA LEELA - 01
VASISHT GOPALKA - 17
ANKUSH JAIN - 19
KAUSHIK JAIN - 25
PRANOTI PURO - 37
ASHWINI SHAH - 47
THANK YOU