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Deutsche Börse today published its recommendations for issuing corporate bonds in the Entry Standard. The best practice guide is based on experience gathered over the past three years in SME bonds. Deutsche Börse published the guide together with several Deutsche Börse listing partners, the German Society of Investment Analysts and Asset Managers (DVFA) and the German Investor Relations Association (DIRK).
The best practice guide for bonds covers all phases of issue, from preparation to placement to capital market communication following placement. It lists requirements for issuers as well as for supporting banks and advisors and shows what roles the different intermediaries play during issue. It also covers the topics collateral and protection clauses and gives recommendations regarding key financial figures for issuers.
“More than 50 companies have placed bonds in the Entry Standard corporate bond segment since it was launched three years ago, so there is sufficient practical experience with this relatively new segment. The best practice guide contains recommendations for bond issue that are desirable but not mandatory. It is designed to serve issuers, banks and intermediaries as a guide to future issues,” said Dr. Cord Gebhardt, Head of Primary Markets at Deutsche Börse AG.
The Frankfurt Stock Exchange created the Entry Standard for corporate bonds in April 2011. The Entry Standard now lists 55 bonds issued by 51 companies, making it market leader for SME bonds.
Issue volume stands at €2.1 billion and has nearly doubled since April 2013. The Entry Corporate Bond Index currently reads 97.2% (7 April).
Information on key figures can be found at http://www.boerse-frankfurt.de/en/bonds/entry+standard+bonds
