Private Debt Securities

Securities issued by private entities (Limited Liability or Joint-Stock companies) as a short-term debt (3, 6, and 9 month commercial papers) and long-term debt (corporate bonds, municipality bonds, mortgage bonds, convertible bonds etc.) can be traded in ALSE. Initially they are issued in the primary market organized by a bank and assigned by the issuer. Limited liability companies (LLC) can issue only short-term debts (commercial papers), whereas Joint-Stock Companies (s.a) can issue both commercial papers and long-term debts.

In the case of private placement, according to the law “On Securities”, the listing in an exchange (including ALSE) is not obligatory, however many issuers in order to be reliable to their investors and to guarantee that they will always be able to turn into cash their investment positions, apply to ALSE for quotation in the Entry Market, which in turn, will make these instruments more liquid. On the other hand in case of a public offer, the law does require the securities to be listed in a securities exchange, therefore ALSE lists them in the respective market segment (Entry Market, Standard Market or Main Market), in accordance with the listing criteria to be fulfilled by the issuer.

After having done this, the owners have the right to trade these securities before their maturity date in order to improve their liquidity position in ALSE.