COURSE OUTLINE 

Introduction to the Debt Capital Market:  

  • What is a Bond/MTN/Commercial Paper
  • Overview of the local and international Bond market
  • Segmentation of Bonds – Investment Grade / High Yield
  • Dominance of USD market 

US Dollar Bond Market: 

  • Issuers
  • Yankee Bonds
  • Investors
  • 144A vs Reg S issues 

Issuing Process and Considerations 

Pre issuance prep: 

  • Funding Needs and objectives
  • Credit Ratings / Benchmark Issue
  • Regulatory Considerations 144A/Reg S
  • Selecting Advisors (Investment Banks, Legal Counsel, Auditors) 

Structuring the Issue and Documentation: 

  • Currency of choice and hedging considerations
  • Maturity Profile and Tenor
  • Coupon Structure (fixed, floating, Zero Coupon)
  • Bond Indentures and Covenants 

Issuance Process: 

  • The IM, Offer Circular, Subscription Agreement
  • Marketing and Book building process
  • Dealing with oversubscription
  • Hedging Considerations 

Key Risk Considerations: 

  • Market Volatility and timing
  • Refinancing Risk
  • Disclosure Risks 

Bonds vs Loans: 

  • Comparing the differences
  • Why a company would choose Bond vs Loan 

Non-endorsement

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