Important changes regarding bonds

Starting from next week, the issue of bonds in the so-called in closed mode will be subject to additional conditions. Changes introduced are the aftermath of the so-called ‘GetBack scandal’ and are supposed to prevent further abuses of this kind.

– From 1 July 2019, the issue of bonds will involve the need of meeting additional formal requirements. They consist in particular in excluding the possibility of issuing bonds in the form of a document. The bonds will be registered at Krajowy Depozyt Papierów Wartościowych S.A. (the National Depository for Securities – NDS). In the case of bonds that will not be issued through public offering, before the conclusion of a contract providing for registration of these securities in NDS, the issuer will be required to conclude a contract for performance of the issue agent's functions. An investment company authorized to keep securities accounts or a trust bank will be the other party to such a contract (an issue agent). The change in the regulations will result in an increase in costs of the issue of bonds as compared to nowadays. But it is not that much certain whether this will eliminate the risk of possible frauds. – writes Marcin Borkowski, PhD, attorney-at-law.

The article by Marcin Borkowski describing these changes and consequences thereof can be found at the Lexplorers blog: http://lexplorers.pl/wazne-zmiany-dotyczace-obligacji/