What is a bond prospectus?

A bond prospectus is a legal document issued by a company or other organisation that is proposing to offer bonds for sale. Most jurisdictions mandate the issue of a prospectus ahead of such a sale in the interests of investor protection.

Where have you heard about the bond prospectus?

While they tend to attract less media interest than the similar share prospectus, bond prospectuses will be discussed in specialist investment publications and may come up in conversation between investors and their financial advisers.

What you need to know about bond prospectuses.

A bond issue will almost always be accompanied by a prospectus giving key details such as the price of the bonds, the number of bonds being issued, the issue date, the 'coupon' - the dividend payable on the bond, the dates on which it will be paid and the maturity date, when the bonds are redeemed by the issuer. Arrangements for underwriting the issue will also be given. The modern prospectus will also advise on the risks involved and may give details of how the money being raised will be used.

Find out more about bond prospectuses.

To discover more about bonds, see our definition of bond swaps.