Corporate bonds provide an alternative form of corporate funding beyond direct bank borrowing and share capital increases.
Corporate bonds can be issued to provide enterprises with external funds that enable them to meet working capital needs of a more permanent nature as well as investment requirements, and are underwritten either by banks (usually on a syndicated basis) or, via banks, by institutional and retail investors.
Corporate bonds are governed by Law 3156/2003.
- Repayment in instalments with or without a grace period, or repayment of the principal upon maturity
- Term: 3 to 5 years
- The interest rate can be fixed or floating, and is agreed following negotiation with the bank.