UniCredit Bank offers services relating to bond issues. These services comprise arranging for and organizing the placement of bond issues for corporate clients. The bank is one of the major arrangers of bond issues in the capital market. It is a settlement bank for the Moscow Inter-Bank Currency Exchange in transactions with Russian Federation Eurobonds, and it has been the payment agent in twenty bond issues for a total of 34.15 billion rubles as well as being a recognized market maker in the bond market. The total number of bonds placed directly by the bank amounts to 68,1 billion rubles.
The main advantages of borrowing in the capital market for issuing companies are:
- no need to provide security for borrowed funds
- no need to conduct operations through the lending bank
- reduction in the cost of borrowing due to greater liquidity of liabilities
- a larger pool of resources due to access to a wide circle of investors
- the creation of a public credit history
UniCredit Bank offers the following services to its clients:
- bond origination:structuring of the issuance and documentation for registration
- underwriting
- payment agent services
Principal Functions of UniCredit Bank in the Bond Issue Market
The broad options offered by UniCredit Bank in the
corporate bond market are largely due to its considerable client
base and the availability of its own funds for investment. When
making bond issues ready for placement, the bank seeks to secure
the most profitable terms and conditions for the issuer as regards
repayment and the cost of borrowing. This is achieved by providing
investors with the most attractive issue in terms of liquidity —
through setting up a professional issuing syndicate, placing the
issue among the largest number of investors, and maintaining
bilateral market quotations.