Debt Capital Markets: Bond Finance
Bond Financing has a number of specific advantages such as;
- Interest-Only payments during the term of the bond (i.e. no principal repayment) which significantly boosts the working capital of the lending company.
- This investment attracts not only Lenders but also Investors.
- Longer Term for repayment (eg. 5-7 years).
- A Listed Bond can offer Additional Security and Liquidity to investors and lenders.
- A Rated Bond can widen the range of investors and lenders the company's bonds can be marketed to.