Our partner Michał Wojciechowski has worked for a property development and construction company as a legal adviser in the process of issuing corporate bonds. The bonds were issued in the "non-public" mode, in a document form, together with interest coupon sheet (paid seasonally). We have also prepared a contract with the mortgage administrator due to the establishment of a joint mortgage on real estate as a security for the redemption of bonds and payment of interest.

Entities who think about issuing bonds to raise capital are encouraged to consider carrying it out this year as Polish Sejm has been working on "Government bill amending certain laws in connection with the strengthening of supervision and investor protection in the financial market". It excludes the issue of bonds in the form of a document. Soon, the dematerialisation of bonds, their registration in the National Depository for Securities and concluding an agreement for the function of the issuing agent with an investment firm or a custodian bank may be obligatory. This will be the case regardless of whether the bonds of a given issue will be the subject of a public offering and further trading on the market and whether they will remain in the hands of the original purchasers (bondholders). The deadline set in the draft act is 1 January, 2019 (the final date depends of course on the progress of passing the act). As can be expected, after this date, the process of issuing bonds will become more costly and time-consuming.