A regular Bond Offering process typically requires smart preparation. The level of demand and planning for a Bond Offering is dependent on stage of the Company\u2019s development, on the characteristics of the transaction \u2013 the format of the offer prior to the listing (\u201cthe Offer\u201d), the market of the listing and also on the type of presentation document that will be required to prepare and disclose to investors or any additional documents that the Company may wish to disclose.<\/p>\n\n\n\n
The presentation document can be Prospectus drafted in accordance with the EU legislation (\u201cEU Prospectus\u201d) or an Information Document\/Technical note and aims to support investors in making an informed decision on whether to invest in the Company\u2019s bonds. Accordingly, it is necessary to ensure an adequate transparency to protect potential investors.<\/p>\n\n\n\n
The preparation of an Offer addressed to the general public (“Public Offer”) that has as a presentation document an EU Prospectus is more challenging than it would otherwise be for an Offer that only requires the disclosure of an Information Document, as a counterbalance to reach more investors and liquidity. <\/p>\n\n\n\n
Drafting a Prospectus may be more demanding but not necessarily a burden: The Prospectus will be subject to approval by the CMVM, which provides the proper support, since early stages of the preparation process, to potential new issuers. The CMVM (or Regulator) performs streamlined and agile procedures for reviewing and approving Prospectus, as a part of its goal to support the development of capital markets.<\/p>\n\n\n\n
An EU Prospectus may benefit of a higher level of confidence from the investors.<\/p>\n\n\n\n
In certain circumstances the preparation of an EU Prospectus is a mandatory requirement for the Offer. The main characteristics that determine the need to prepare and disclose a Prospectus are:<\/p>\n\n\n