Companies that choose to issue debt securities can list bonds and commercial paper on the stock exchange. Both are forms of debt securities, but bonds are used to finance longer-term projects, while commercial paper is issued by companies for shorter periods and to finance short-term needs such as working capital, inventories and debt collection.
For listing bonds to the stock exchange the following general conditions must be met:
For listing bonds to the stock exchange the following general conditions must be met:
- the company is organised as a joint stock company or limited liability company and has a valid LEI code,
- the company has drawn up a prospectus for the listing of the bonds, which has been approved by the Securities Market Agency (more on obtaining the Agency's approval),
- the company's bonds are issued in the central register of the KDD (more about issuance in the KDD) and
- the bonds are freely transferable.
For listing commercial papers to the stock exchange, the same conditions must be met as for the listing of bonds, with the difference that commercial papers do not require the preparation of a prospectus, which has to be approved by the Securities Market Agency, but it is sufficient for the company to prepare and publish a simplified document containing basic information about the company and the commercial paper.
For companies in the early stage or SMEs that are facing capital market entry for the first time and at this stage do not yet want to take on all the obligations that listing bonds or commercial papers entails, the stock exchange offers an alternative market - SI ENTER - which is less demanding compared to the stock market and at the same time provides both essential functions, such as raising capital and exiting ownership.
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