Broadening the Offering Choice of Corporate Bonds in Emerging Markets : Cost-Effective Access to Debt Capital

The development of corporate bond markets has been constrained in many emerging economies, partly because the regulatory model is implicitly designed for stand-alone public offerings. Corporate bonds are intrinsically more suitable for non-retail investors than for retail investors. Nonetheless, the prevailing regulatory model puts an excessive emphasis on disclosure and investor protection as well as government oversight, regardless of targeted investors. Such a non-differentiating regulatory approach disconnects issuers from investors by considerably raising opportunity costs to issuers. Broadening the choice of offering methods would lower corporate bond issuance costs, thereby allowing more issuers to finance their investments with bond issues. Additional forms of offerings are traditional private placements, institutional offerings, and shelf registration facilitated by integrated disclosure.

Bibliographic Details

Main Author:	Endo, Tadashi
Language:	English
Published:	World Bank, Washington, DC 2008-06
Subjects:	ACCOUNTANT, ACCOUNTING, ACCOUNTING STANDARDS, AGENCY PROBLEMS, AUCTION, BALANCE SHEETS, BANK BORROWING, BANK DEPOSITS, BANK LOAN, BANK LOANS, BANKING SECTORS, BANKRUPTCY, BANKRUPTCY LAWS, BENEFICIARIES, BID, BOND CERTIFICATE, BOND INVESTORS, BOND ISSUE, BOND ISSUES, BONDHOLDER, BOOK-ENTRY, BORROWER, BROKERS, CAPITAL MARKET, CAPITAL MARKETS, CASH FLOW, CASH FLOWS, CASH INFLOWS, CASH MANAGEMENT, CASH OUTFLOWS, COLLATERAL, COLLATERALIZATION, COMMERCIAL BANKS, COMMON LAW, COMPANY LAWS, COMPETITIVE MARKET, CONTRACTUAL SAVINGS, CONTRACTUAL SAVINGS INSTITUTIONS, CORPORATE BOND, CORPORATE BOND INVESTMENT, CORPORATE BOND ISSUANCE, CORPORATE BOND ISSUERS, CORPORATE BOND ISSUES, CORPORATE BOND MARKET, CORPORATE BOND MARKET DEVELOPMENT, CORPORATE BONDS, CORPORATE DEBT, CORPORATE GOVERNANCE, COUPON, COUPON PAYMENTS, COUPON RATE, CREDIT QUALITY, CREDIT RATING, CREDIT RATINGS, CREDIT RISK, CREDITORS, CREDITWORTHINESS, DEBT, DEBT CAPITAL, DEBT ISSUANCE, DEBT ISSUES, DEBT MANAGEMENT, DEBT MARKET, DEBT SECURITIES, DEVELOPING COUNTRIES, DEVELOPMENT OF CORPORATE BOND MARKETS, DISCLOSURE REQUIREMENTS, DISCLOSURE STANDARDS, DUE DILIGENCE, ECONOMIC DEVELOPMENT, EMERGING DEBT MARKETS, EMERGING ECONOMIES, EMERGING ECONOMY, EMERGING MARKET, EMERGING MARKET ECONOMIES, EMERGING MARKETS, EQUITIES, EQUITY CAPITAL, EQUITY SECURITIES, EURO MARKET, EUROBOND, EXCHANGE COMMISSION, FINANCIAL CRISIS, FINANCIAL INSTITUTIONS, FINANCIAL MARKET, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SECTOR INDICATOR, FINANCIAL STATEMENTS, FIXED INCOME, FIXED INCOME SECURITIES, FIXED INTEREST, FOREIGN INVESTORS, FRAUD, GLOBAL ECONOMY, GOVERNMENT BOND, GOVERNMENT BOND MARKETS, GOVERNMENT BONDS, GOVERNMENT DEBT, GOVERNMENT DEBT MARKETS, HOLDING, INDIVIDUAL INVESTORS, INFORMATION ASYMMETRY, INSTITUTIONAL INVESTOR, INSTITUTIONAL INVESTORS, INSURANCE, INSURANCE COMPANIES, INTEREST COST, INTEREST PAYMENTS, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKET, INVESTING, INVESTMENT BANK, INVESTMENT DECISION, INVESTMENT OPPORTUNITIES, INVESTMENT OPPORTUNITY, INVESTMENT POLICIES, INVESTMENT PORTFOLIO, INVESTMENT PORTFOLIOS, INVESTOR BASE, INVESTOR PROTECTION, ISLAMIC FINANCE, ISSUANCE OF BONDS, JUNIOR CREDITORS, LEGAL PROTECTION, LEGAL SYSTEM, LEGAL SYSTEMS, LIABILITY, LIQUID MARKET, LIQUID MARKETS, LIQUID MONEY, LIQUIDATION, LIQUIDITY, LIQUIDITY PREMIUM, LOAN MARKETS, LOAN PROCESSING, LOCAL CURRENCIES, LOCAL CURRENCY, LOCAL MARKET, LONG-TERM DEBT, LONG-TERM INVESTMENT, LONG-TERM INVESTORS, MACROECONOMIC ENVIRONMENT, MARKET CONDITIONS, MARKET EFFICIENCY, MARKET INFRASTRUCTURE, MARKET INTERMEDIARIES, MARKET MICROSTRUCTURE, MARKET PARTICIPANTS, MARKET PRACTITIONERS, MARKET REGULATOR, MARKET RISK, MARKET RISKS, MARKET STRUCTURE, MATURITY, MATURITY MISMATCHES, MONETARY AUTHORITY, MONEY MARKET, MONEY MARKET INSTRUMENTS, MORAL HAZARDS, MUTUAL FUNDS, OPPORTUNITY COST, OPPORTUNITY COSTS, OUTSTANDING AMOUNT, OWNERSHIP STRUCTURE, PENSION, PENSION FUNDS, PRIMARY DEALER, PRIMARY DEALER SYSTEM, PRIMARY MARKET, PRIVATE PLACEMENT, PRIVATE PLACEMENTS, PUBLIC DEBT, PUBLIC DEBT MARKETS, PUBLIC MARKET, PUBLIC OFFERING, PUBLIC OFFERINGS, PURE DEBT, RATE OF RETURN, REGISTRATION FEE, REGISTRATION STATEMENT, REGULATORY FRAMEWORK, REGULATORY SYSTEM, REINVESTMENT, REINVESTMENT RISKS, RENEGOTIATION, REPAYMENT, REPAYMENTS, RETAIL INVESTORS, RETURNS, RISK MANAGEMENT, SECONDARY MARKET, SECONDARY MARKET LIQUIDITY, SECONDARY MARKET TRADING, SECURITIES LAW, SECURITIES LAWS, SECURITIES MARKET, SECURITIES REGISTRATION, SECURITIES REGULATION, SECURITIES REGULATIONS, SHAREHOLDER, SHAREHOLDERS, STAMP DUTY, STOCK EXCHANGE, TAX, TAX REGIME, TRADING, TRADING COST, TRADING COSTS, TRADING SYSTEMS, TRANSACTION, TRANSFER AGENT, TRUST INDENTURE, TRUSTEE, TYPE OF INVESTORS, UNDERWRITER,
Online Access:	http://documents.worldbank.org/curated/en/2008/06/9596891/broadening-offering-choice-corporate-bonds-emerging-markets-cost-effective-access-debt-capital https://hdl.handle.net/10986/6864
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