A bond date is usually the closing date of the bond. It is the date in which the bond was issued and delivered. It is also the date when the exchange of the bond for the cash or property takes place. It is typically the purchase of the bond by the purchasers.

Before getting to the bond dates, it is crucial to understand how you can complete a bond issue satisfactorily until you get to the closing date. So there are four stages that a bond has to go through before the process is complete. The four include:

• Pre-launch
• Launch and road show
• Issue
• Post-issue

Bond Issue Timetable

The bond issue timetable can vary from several months to only a few days to the bond date. That will be dependent on the complexity of the conditions in place, the jurisdictions involved and the parties too. It can also be dependent on whether these bonds are supposed to be listed or whether the issuer of the bond is a first-timer. Even though the details of every bond may differ, most of them will follow a specific similar structure.

PRE-LAUNCH

When the issuer identifies the need to borrow, and they now decide to issue bonds, they should consider several things before the actual launch. So before the issuer gives the bond issue, they need to ensure there are no legal constraints that limit them from offering the bonds. The issuer also needs to ask themselves whether the guarantor can guarantee the bond. They need to assess several factors when structuring the bond, such as is it?

• Global or definitive
• Registered or bearer
• Whether it is rated by a rating agency for credits
• Whether it is listed on the stock market
• Parties Appointment

In this stage is where the issuer will look for the relevant parties who will complete the transaction. These include the lawyers, auditors, printers, paying agents, trustee and the lead manager.

LAUNCH

In this stage, the issuer announces their intentions to sell the bonds. The issuer is supposed to find investors who are going to purchase the bonds unless they already have an investor in mind. The launch date is the actual date that the issue will be announced publicly.

Listing authority and informing the clearing system

The bonds will need to be cleared via a clearing system. The lead manager is responsible for registering the bond in the stock exchange, and they will also agree with the timetable. They will then send the prospectus by mail to the relevant people to list the bond.

ISSUING OF THE BOND

It is now the bond date or the closing date, which is typically in around three weeks after the launch of the bond. Here the legal documents are signed off, and the issuer gives the obligation, and the other party who are bondholders will pay the issuer for the bond. The stage is divided into:

• Signing – the agreement is agreed by all involved parties, and the prospectus is approved.
• Closing – all the other relevant documents are signed off, and the bond is delivered after being signed off to bondholders. The payment is also completed.

POST-ISSUE

Once the transaction is complete, there are still several things that need to be taken care of. The lawyers should list all the post-completion issues and also note all the relevant deadlines.

That is the bond issue process up to the bond date, and the additions that you should consider after the transaction is complete.

Take Away

Bond dates are closing dates, and technically this is when the transaction takes place. It is when the bond is delivered to a bondholder, and the payment made to the issuer.