Debt securities, commonly referred to as bonds, are financial instruments that allow the issuer (usually a company) to raise capital from investors in the form of a loan. In this case, the investor provides capital and, in exchange for this loan, receives regular interest payments over a fixed period and, at the end of the term, the principal (i.e., the amount borrowed). For the issuer, bonds offer a way to finance their business activities without having to give up ownership stakes.

• Maintaining Control and Ownership – Unlike issuing shares, which may lead to dilution of ownership rights and loss of control over decision-making within the company, issuing debt securities does not affect the ownership structure. Investors, in this case, do not own a stake in the company and have no voting rights.
  
• Predictable Financial Costs – For most debt securities, the interest rate is either fixed or based on a specific index, providing the company with a clear understanding of future interest expenses. This allows for effective financial planning and stability.
• Better Access to Financing – Bonds can be advantageous for the issuer in terms of accessing a broader range of investors, both from the public and institutional sectors. This approach can serve as an alternative to traditional bank financing.

• Obligation to Repay – One of the main disadvantages is the obligation to regularly pay interest and, at the end of the term, repay the principal. This means that even in the case of economic difficulties or revenue declines, the company must fulfill its obligations to investors, which can impose a significant financial burden.
  
• Interest Costs – Depending on the issuer's credit rating, the interest rate may be higher, increasing the overall financing costs. For companies with lower credit ratings, the costs associated with debt securities can be quite high.
  
• Reputational Risk – If a company fails to repay its bonds or interest on time, it may lead to a negative impact on its reputation in the financial markets and a decrease in trust from future investors.
  

• Fixed (Vanilla) Bonds – These bonds have a fixed interest rate that is paid regularly throughout the life of the security. For the issuer, this means stable and predictable costs, which is beneficial for financing and cash flow planning.
  
• Variable-Rate Bonds – Unlike fixed-rate bonds, these securities have an interest rate that can change based on a specific reference index (e.g., interbank lending rates). These bonds may be attractive to investors during periods of rising interest rates but can pose a risk to the issuer if rates increase.
  
• Hybrid Bonds – Hybrid bonds combine the characteristics of debt securities and shares. They may have features that allow for conversion into company stock or deferring the repayment of principal to a later date. This type of security is suitable for issuers seeking flexibility in managing their debt and ownership structure.

• Ensuring the Complete Issuance Process 
  

Tomes & Partners specializes in providing a comprehensive solution for the issuance of debt securities. This process includes all steps from advisory services, legal arrangements, to the distribution of securities, covering all stages of development and implementation. Our goal is to provide businesses with comprehensive and efficient support in raising capital through debt securities.

• Legal and Regulatory Conditions 
  

Our company ensures that all steps related to the issuance of securities are carried out in compliance with European law and the legal regulations of the relevant jurisdictions. This also includes notifications and submission of the necessary documents in all European Union countries and other associated states such as Switzerland, Liechtenstein....

• Time Consumption and Complexity of the Process 
  

The issuance of debt securities is a time-consuming process that requires careful preparation, coordination, and adherence to specific legal and regulatory steps. The entire process may take several months before the actual realization and introduction of the securities to the market.

• Ensuring the Distribution of Securities 
  

The distribution of debt securities is an essential part of the entire process. Our company ensures that the securities are effectively distributed among investors. This process is coordinated with distribution experts who will manage proper communication with investors and comply with applicable regulations and laws. For more information on the distribution of securities, please refer to another tab of this presentation.