In Croatia, the most common forms of savings and investments are bank deposits and real estate, while other types of investments often seem too complex for the average investor. However, in the past year, a new opportunity has emerged in the market that could capture the attention of all investors: corporate bonds.
The issuance of bonds is a complex and demanding process that involves a series of financial and operational steps. Escont Partners is the first and currently the only advisor of this kind in Croatia, providing support to small and medium-sized enterprises to make their bonds available to the general public.
New Market Option: An Opportunity for Investors Seeking More
Corporate bonds are registered securities through which SMEs have enabled the general public to invest directly for the first time, without intermediaries. This has also given small investors the opportunity to access a market that was previously intended only for professionals and large investors.
The public offering of Qela bonds in the amount of 3 million euros has been successfully concluded, and a new round of issuance is currently open, conducted by Koykan – a well-known Croatian street food brand with a growing business in the region. It is important to emphasize that Escont Partners does not issue bonds, does not solicit investments, nor does it raise capital. Their role is strictly advisory, focusing on process preparation, education, and ensuring compliance.
Who Can Invest? And What Exactly Does “8% Annually” Mean?
Investors who wish to explore this option should know the following:
– This is a corporate bond with a fixed annual yield of 8%
– The minimum investment is €1,000
– SKDD creates the bonds and registers them in the investors’ accounts
– Interest is paid semi-annually, while the bond matures after 3 years
Although this form of investment offers a significantly higher yield than traditional instruments, it also carries a higher level of risk. Therefore, it is crucial for the investor to understand the investment terms, the business model, and the financial stability of the issuer.
