The placement of a bond issue (debt security) with the public responds to needs identifiable in the need to finance business activity rather than the financing of a specific operation.
However, this second case is not ruled out a priori if there are minimum requirements in terms of quantitative size and duration. In any case, a bond issue is by its very nature modulable over maturities distant in time and may please note different characteristics in terms of collateral, degrees of lien/subordination, and cash flow timeline. It is clear, therefore, that by virtue of its adaptability to the needs of the enterprise, knowledge of the health of the enterprise becomes the focus of the analysis.
The Company will therefore be evaluated with the same seven criteria listed for Equity or Lending Crowdfunding. If the Company meets all the general criteria positively, the second phase aimed at defining the macro-features of the bond will be initiated. Specifically:
evaluation of the adequacy of the issue size in relation to the financial needs manifested by the company;
term of the issue, the maximum maturity of which is set at 6 years;
return on the bond, such that the principal is repaid and the return on the debt is fair in relation to market values;
evaluation of any collateral and degree of subordination.
If the described evaluation steps are passed, the candidate Issuer and its issue are considered selected and the arrangement process begins.