Issuing bonds as a non-listed public company

[NourJ]

Hey everyone! I was wondering if anyone knew if it is possible to issue bonds and have them publicly traded without being listed on the stock exchange.

I saw online that its possible to become a plc without doing an IPO but would this prevent us from issuing bonds to the public on the debt capital markets?

Thank you very much for your help everyone!

 

[Pallatablelawyer]

Bonds are different from equity shares so yes you can issue them without being listed

 

[bronson]

Hey everyone! I was wondering if anyone knew if it is possible to issue bonds and have them publicly traded without being listed on the stock exchange.

I saw online that its possible to become a plc without doing an IPO but would this prevent us from issuing bonds to the public on the debt capital markets?

Thank you very much for your help everyone!

In response to the first part, yes, bonds can be traded without being on a public market and they're called private placements. Essentially you go to private investors directly rather than to investors on a public market (London Stock Exchange etc.), and there is generally less regulation and disclosure requirement involved.

In response to the second part, no, going public via a different route to an IPO would not prevent you from issuing bonds publicly - a private limited company can become a public one without an IPO by either a direct listing or reverse merger (both easily Google-able terms), and if it became a public entity itself then it could issue bonds on any public markets.

Hope this clears things up.

 

[NourJ]

Bonds are different from equity shares so yes you can issue them without being listed

In response to the first part, yes, bonds can be traded without being on a public market and they're called private placements. Essentially you go to private investors directly rather than to investors on a public market (London Stock Exchange etc.), and there is generally less regulation and disclosure requirement involved.

In response to the second part, no, going public via a different route to an IPO would not prevent you from issuing bonds publicly - a private limited company can become a public one without an IPO by either a direct listing or reverse merger (both easily Google-able terms), and if it became a public entity itself then it could issue bonds on any public markets.

Hope this clears things up.

Thank you both so much this is super helpful!!