Competence centre for SME bond issues

​​​​​​​Company bonds as a financing alternative are also becoming increasingly important for German medium-sized companies. In order to fulfill the requirements for the structuring and placing of these so-called mid-cap bond issues in the best way possible, we have combined the expertise of our professioanls in our dedicated competence centre. In this way we are available to answer the questions of our clients and provide active support with the implementation of your bond project.


Market conditions

For various reasons (including the third Basel accord), at the present time it is not possible for many German medium-sized companies to extend their credit exposure to banks which means that their financing plans are endangered. Furthermore, numerous companies want to or are even forced to reduce their credit volume. In that context mid-cap bonds can be an attractive alternative or complementary measure. In recent years many companies have already successfully implemented bonds and more will follow. On the investment side private and institutional investors, due to the low interest policy of the central banks and lack of alternative investment possibilities in the area of fixed interest currently see mid-cap bonds as an attractive form of investment and therefore this form of investment has made a contribution to establishing the bond as a financing instrument for German medium-sized companies. The market for mid-cap bonds is still a relatively new market. In the coming years this market will continue to grow and develop.

Situations where financing is required

The issuers of bonds are very different and there are many different reasons why bonds are issued. The capital raised is used, for example, by the issuer for the financing of investments for the provision of services, for the financing of growth and internationalisation strategies or for financing projects. But a bond may also be issued for the purpose of refinancing other external capital items (in particular bank loans), which in turn reduces exposure to the banks. In practice it has been observed that in general the funds are used for a combination of growth financing and refinancing.

Type of placement

For the placement of the bond differentiation is made between a private placement with a limited circle of institutional or semi-institutional investors or a public placement usually via specially set-up market segments for the medium-sized companies such as the "Bondm" from the Stuttgart stock exchange, the "Entry standard" of the German stock exchange or the "Mid-sized market" of the Düsseldorf stock exchange. On the other hand, differentiation is made between own issues and third-party issues. With own issues the issuer manages the distribution and banks only provide service functions (including a paying agent). With third-party issues the banks, placement consortia or other capital brokers manage the distribution for a fee.
Depending on the type of placement, the main focus of our work is to directly use our existing network of institutional and semi-institutional investors for a successful placement of mid-cap bonds. This provides a certain degree of security for the successful placement of the bond and also helps to reduce the issuing costs.

One-stop shop for consulting services

On the way to the successful placement of the bond, the complexity of different bond projects can result in diverse requirements for the company. Rödl & Partner is able to offer companies comprehensive consulting services during the whole process and offers a one-stop shop for the most important consulting services. We also maintain regular contact with other service providers, such as rating or communication agencies. If required, we can handle the complete management for the issue of the bonds.

The following represents the issue stages and our consulting services

Stage 1: Analysis and structure

  • ​​Examination of readiness for the issue and capital market capability
  • Definition of bond and issue structure (e.g. volume, interest, period)
  • Definition of project team (internal/external) and project management
  • Preparation of information memorandum (including "Bond story")​


Stage 2: Execution

  • Support for rating process
  • Integration of banks
  • Preparation of bond brochure
  • Investor discussions
  • Definition of stock exchange


Stage 3: Placement

  • Submission/approval/ publication of prospectus
  • Marketing and communication
  • Subscription and allocation of the bonds
  • Listing and trade


Stage 4: Follow-up work

  • Compliance with information obligations /preparation of documents
  • Monitoring of possible covenants
  • Processing of redemption / follow-on financing


Case study IPSAK bond

Recently we were able to effectively use our interdisciplinary expertise with the very successful issue of a mid-cap bond in the real estate business in the "Bondm" segment of the Stuttgart stock exchange. Consulting for this very complex transaction of the IPSAK mbH (​) was provided by us for the issue (project management) and the drawing up of a prospectus. Further information regarding our consulting services for the issue of the IPSAK bond is available in the case study.


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Björn Stübiger


+49 89 9287 80 515

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