Bond Issue Limit/Ceiling for Publicly-held Joint Stock Companies
The total amount of bonds and other debt securities corresponding to capital market instruments which may be issued by publicly-held companies cannot exceed the sum of paid-in or issued capital, reserve funds and the revaluation fund minus losses, if any, as shown on the last balance-sheet approved by the general assembly and independently audited.
Bond Issue Ceiling = (Issued/Paid-in Capital + Reserve Fund + Revaluation Fund) – Losses
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Bond Issue Ceiling Coefficient for Publicly-held Joint Stock Companies
Publicly-held joint stock companies:
- may issue up to 6 folds the bond issuance ceiling provided that they have recorded net profits for the period as evidenced by the financial statements of the last year prepared in such standards determined by CMB and independently audited and that the borrowing amount projected by the company has been approved by CMB,
- may issue up to 3 folds the bond issuance ceiling if they have not recorded any net profit for the period as shown on their independently audited balance-sheet for the last year.
Unless the bonds issued and other debt securities corresponding to capital market instruments are sold out, or those which remained unsold are cancelled, further bonds of the same type and other debt securities corresponding to capital market instruments cannot be issued.