Issuing Debt Securities

Course Overview

This is a 1-day intensive interactive training programme covering the steps of issuing a Eurobond. The purpose is to give the traders perspective to lawyers and bankers. First we shall compare Fixed Income Bonds with other fund raising instruments such as syndicated loans. We will go through all the steps required for issuing the bond and cover the pricing methodology in order to break through the mystic of jargon and calculation.

Finally, we shall emphasise the documentation required throughout the process. By attending this one day course you will gain an understanding of the debt origination process, learn about the pricing process, be able to calculate all-in price and all-in cost, work out annualised fees and go through a real life case study.

Participants will be required to bring a scientific calculator and a laptop with USB port to the course.

Course Content

The market players

• Issuers
• Investors
• Banks
• Intermediaries
• Listing agencies
• Others

Anatomy of a bond issue

• Bidding process
• Indicative pricing
• The mandate
• Book building and conflicts of interest
• Pot deals
• Road show
• Firm pricing
• Distribution
• Allotment
• Launch into primary market
• Stabilisation
• Signing
• Secondary market

Documentation

• Offering circular
• Due diligence
• Subscription agreement
• Agreement among underwriters and managers
• Selling group agreements
• Listing
• MTN Programmes

New Issue Arbitrage [Linking Bonds and Swaps for Borrowers]

• The debt origination process
• Pricing a New Issue based Fixed price Re-offer (Eurobond Issue)

Case study: Pricing a Eurobond Issue

• Benchmarking the New Issue
• Setting the Re-offer Spread
• Setting the coupon
• Calculating the Re-offer Price
• Calculating the Issue Price
• Calculating the All-in Cost and Yield
• Expenses
• Finding the All-in Spread (including fees)
• The advantage of adding Swaps to the Bond

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.