Issuing credit
The term emission credit referred to the bank's reputation in emission of securities .
An issuing loan is issued by special issuing banks that specialize in this area. The issuing company has to issue securities that are to be placed on the securities market in order to raise capital for the issuer that can be used for investments in the company. The bank grants the issuer a loan by taking over the company's securities. This gives the bank securities and, as a rule, shares in the respective company. The issuing company receives a capital increase through the transfer of the securities. The securities serve as security for the issuing bank, which they can use as an investment.
A high issuing credit is essential to the success of issues and is mainly determined by successful issues by that bank in the past.
The pre-financing of the proceeds from the issue by the issuing banks is also incorrectly referred to as issuing credit. Wrong, as it is not a loan against a firm takeover of the securities to be issued ( shares , bonds ), but an advance payment of the proceeds from the issue.
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- Constantin Sapunov: Obligations of conduct of investment services companies towards issuers in IPOs, 2011, ISBN 9783643108647 , p. 123, online