Importance The article focuses on the issue of bonds as a source of corporate finance. Considering the Russian operating environment, companies expand their presence in the stock market and replace bank loans by issuing bonds. Objectives The research identifies the specifics of issuing corporate bonds for fund raising purposes. The research also provides a theoretical rationale whether the process is feasible and evaluates the current state of the Russian market of bonds. Methods I analyze and summarize scientific literature on the matter, and use a structural analysis of the specifics of bond-based finance. Results I found fundamental characteristics of a bond issue as a source of finance, formulated its key advantages and challenges, and provided a statistical view of the current and future market situation. Conclusions and Relevance Bond issue is one of the methods to improve corporate operations in the market and achieve desired results. Entities will continue replacing bank loans with bonds so to cut their operating expenses and striving for more affordable sources of finance.
Keywords: bonds, loan, issue, interest, financing
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