Document background
The Bond Promissory Note (Schuldverschreibung) is a sophisticated debt instrument commonly used in German financial markets for raising capital. This document type is particularly relevant when companies or financial institutions need to secure medium to long-term financing through debt securities. The Bond Promissory Note, governed by German law, particularly the German Civil Code (BGB) and German Bond Act (SchVG), provides a detailed framework for the issuance of debt securities, including essential terms such as interest rates, repayment schedules, and security arrangements. It's frequently used in both private placements and public offerings, offering flexibility in terms of structure while maintaining the formal requirements of German securities law. The document includes comprehensive provisions for bondholders' rights, collective action procedures, and transfer mechanisms, making it a preferred instrument for institutional investors and corporate borrowers alike.
