Corporate bond issuance is the process through which companies raise capital by issuing debt securities (bonds) to investors in the capital market.
Companies issue bonds for several reasons: raising funds for expansion or new projects, diversifying funding sources beyond bank loans, potentially lower borrowing costs, and securing long-term capital.
The issuance process typically involves an investment bank as an intermediary. The bond terms — coupon rate, maturity, and repayment structure — are determined before the bonds are offered to the market.
In Bangladesh, the corporate bond market is still relatively small but growing. The Bangladesh Securities and Exchange Commission (BSEC) is taking steps to develop the corporate bond market.