Mini bonds arriving to local market – New source of finance for small and medium enterprises in Serbia

From now, small and medium enterprises in Serbia are able to collect funds for development by issuing mini bonds - a new financial instrument which is being introduced in the local capital market for the first time.

These bonds enable companies to secure up to EUR 10 million, without a need for solid collaterals, with a maturity date of seven years and a grace period of two years. The funds may be used for introducing new products, expanding the capacities, entering new markets or acquisitions.

Mini bonds are issued with the support of an arranger that buys out the entire amount of the issue, which accelerates the realization and guarantees the safety of the transaction. Individual issues are based on an estimate of the business plan and credit ability of the company.

This financing model is part of a wider initiative of the banking group Intesa Sanpaolo which is successfully implemented in EU member states and which is now also being expanded to the markets of Serbia and Slovakia. The aim is to strengthen the competitiveness and resilience of small and medium enterprises and to open alternative sources of capital outside traditional banking credits.

Banca Intesa a.d. Beograd

Intesa Sanpaolo

mini bonds