Special Characteristics of Debentures Offerings

On the deed of emission of the debenture loan you can find a description of the key elements of the operation. For example: What elements from the unmovable of the company will serve as a guarantee for the debentures; what bank will act as a stock exchange committee for the debentures; with what grade of authority does the bank acting as stock exchange committee count to be able to declare a bankruptcy of the company in the case of not fulfilling the conditions contained on the deed of emission; what type of interests will they pay to the debenture holders and, in what way will they make the payments.

More than examining the own deed of emission, what most of the investors do is to go to a financial   advisor to be informed about the terms do is to go to a financial advisor to be informed about the terms in which is written.

Only in the case of a non fulfillment from part of the issuing company would the debenture holders pay attention to the deed (although many of the debenture loans done now a date; when not existing any assets as elements for a guarantee, are done with only guarantee of the “good faith” and the “good credit” of the issuing society), before they used to emit two types of debentures: to the bearer and nominative.

The debentures to the bearer are easy to transfer, due that the issuing company is not responsible for identifying the holders of their debentures. But in these last years they have only issued nominative debentures, due that the government, in order that the rent derived from these sources could be fiscally taxed, they are pressing for the owners of financial assets to identify themselves.

The nominative debentures obliges company to identify the holders, to pay them the interests at expiration and to notify them about any novelty that would appear, as for example debenture rescue operation.