Secured Bonds

We provide our clients with complete legal services in connection with the preparation of the issue of secured bonds, including the issuance of bonds with a prospectus. We have extensive experience with bond issues issued by issuers from a wide range of industries. Typically, these are real estate groups, investment funds, manufacturing companies and technology entrepreneurs who are interested in a high-quality issue by renowned experts in capital markets and financial regulation.

Types of security for obligations from bonds

The obligations from bonds can be secured in the following ways:

• security interest in real estate (buildings, land, etc.)
• security provided by a third party in the form of a surety declaration (e.g. holding parent)
• security interest in shares in a company, security interest in investment shares of an investment fund
• security by a promissory note with an aval declaration

Security agent

Secured bonds generally require the appointment of a security agent. This is a person who sets up and exercises security rights on his own account for the benefit of the owners of the bonds, including in insolvency or execution proceedings. If the issuer defaults, the security agent mainly realizes the security (e.g. monetizes the mortgaged property) and subsequently distributes the proceeds of the security to the owners of the bonds. The security agent may be e.g. a bank, investment firm, auditor, lawyer, etc.

What can we do for you?

• we assess your intention to obtain financing and recommend a suitable form of bond issue;
• we advise you on the setting of specific parameters of the issue according to the standards and market practice;
• we compile the terms and conditions of issue in accordance with the Act on Bonds;
• we prepare the contractual documentation for the bonds, including the underwriting agreement with investors or the administration agreement;
• we arrange the global LEI and ISIN for the bonds at the Central Securities Depository;
• we arrange the book-entry of the bond issue at the Central Securities Depository;
• we prepare the text of the bonds and collective bonds;
• we execute corporate documents relating to the approval of the issue in accordance with your memorandum or articles of association;
• we prepare a contract with a security agent;
• we prepare a pledge agreement, surety declaration or other security document and ensure registration of the relevant security (e.g. security interest in the Land Register);
• we advise you on the appropriate way to distribute your bonds, or connect you with investment firm and other persons authorised to offer bonds;
• we provide you with a guide for easy working with bonds, calculation of AUV (aliquot interest yield), bond transfers, etc.