Reissuance of Bonds

The ability to re-issuance of bonds enables corporate to issue the same bonds again and again. At present only sovereign is allowed to re-issue securities.

Advantage of Multiple Bond Issuances

  • It make bond easy to trade
  • Boost liquidity in the secondary market
  • Bring down the cost of issuance for issuers
  • Facilitate cash management for issuers and investors
  • Reduce back-office work as fewer bonds will have to be managed

Disadvantage of Multiple Bond Issuances

  • It may bundle up redemptions on maturity date
  • May not help one time issuers

Companies which are frequent issuer get benefits from multiple bond issuances such as

  • Banks
  • NBFCs
  • Power finance companies and
  • Other finance companies