Keijser Capital introduced the SME Bond in 2012 as a new funding option in the Dutch capital market. This ties in with the broad development in other European counties, including Germany, France, Italy and Belgium, where for years there has been thriving corporate bond markets.
With the SME Bond, midsize organizations can gain access to a new financer: the professional and private long-term investor. The proceeds of the issue can be used to make investments or acquisitions. In the current economic conditions bonds, often overlooked in the Netherlands, form a good addition to unilateral bank financing. By making use of bonds instead of equity funding (family) companies are able to retain greater control.
The bonds are issued in coupons of EUR 1,000 par value by a specially established, separate financing entity. This way collateral is secured and risk reduced, both for the company itself and for investors.
SME Bond listed on Euronext
The SME Bond (De MKB-Obligatielening) may be listed on Euronext or Euronext Growth, making them tradable for the general public. This creates a myriad of benefits for our clients, such as: increased brand awareness, easier access to investors in subsequent issues or a stock exchange listing, and the possibility of an exit for the director-majority shareholder.
For (private) investors the SME Bond is a good opportunity to invest in the growth engine of the Dutch economy, to which normally only large professional investors can subscribe to.
The SME Bond is suitable for companies with:
- A grounded financing need of a minimum of 2.5 million euros
- Interesting and sufficient current assets as collateral for the bond issue
- A proven business model and track record with sufficient cash to pay the bond coupon
Throughout the whole process Keijser Capital takes the role of an advisor/counsellor. For the placement of the SME Bond, we make use of experienced external parties