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Invesdor introduces two convertible bond products

Invesdor Insights | 28.05.2020

“At Invesdor, our key mission is to help companies fund their projects in the most suitable way. The financial and economic markets are going through extraordinary times and we are extending our portfolio with two products perfectly matching those new circumstances”, Invesdor Group founder Lasse Mäkelä says.

Invesdor launches two convertible bond products on 28 May 2020: the Classic Convertible Bond and the Bridge Convertible Bond.

Classic for mature businesses, Bridge for growth companies

The Classic Convertible is aimed at established companies planning to have an equity issue in the future and who want to gauge investor interest for it, Invesdor’s management explains.

The tenure of the Classic Convertible will be 2-5 years. Bondholders can opt to convert it into the issuing company’s shares during any qualified share round.  

The Bridge Convertible is tailored more for growth companies. It will be marketed for example to companies looking for funding but who are not right now keen to hold an equity round because of the ongoing market downturn.

The Bridge Convertible’s tenure will be 1-2 years. It will be automatically converted into the issuing company’s shares during the next qualified share round or when the bond matures.

“All kinds of businesses are currently looking at different funding options, and one size does not always fit all. we discussed our approach at length and concluded that we needed to offer two models with this product so that companies can make the most of it”, Invesdor Group’s Head of Deal Flow, Finland Joel Kettunen explains.

Invesdor survey suggests investors are still interested in investing

Kettunen feels confident that the new convertible bond products will reach their audience.

“We strongly believe that we are offering flexibility that’s in high demand right now with both companies and investors. Our recent survey results showed that there is still a clear interest to make investments if the right opportunity comes along. We are reacting to this and expanding our product portfolio to offer our partners – companies as well as investors – a new, up-to-date investment solution.”

Invesdor’s convertible bond products are described in more detail on Invesdor’s website for investors and for companies.

Disclaimer

The information contained herein is not meant to be, and it shall not be interpreted as investment advice or a recommendation and investors must neither accept any offer for, nor acquire, any securities unless they do so on the basis of the information contained in the applicable investment material of a target company. Investing in securities of unlisted companies is associated with high risk.

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