Ograniczenia transferów do właścicieli w kowenantach obligacji notowanych na rynku Catalyst

Abstract

Purpose – This paper focuses on the direct and indirect dividend covenants (as divided by Kalay) embedded in the terms of issues of bonds listed on the Catalyst market. The aim is to analyze the types and structure of covenants limiting transfers to the shareholders and to analyze the differentiation of covenants depending on the characteristics of issuers and issues of bonds. Design/Methodology/approach – The subject are non-bank corporate bonds admitted to trading on the Catalyst market in 2009-2013. The authors examine the structure and frequency of dividend covenants and analyse the relationship between the characteristics of issuers and issues and the use of dividend covenants. Findings – 75% of the analysed series of bonds contain indirect covenants and 52% - direct covenants. The bigger issuers and issuers with lower credit risk often use indirect covenants which allow them to run a flexible financing policy. The smaller issuers often use direct covenants. Originality/value – The paper fills a gap in the empirical research on the Polish bond market, particularly in the studies on covenants and their role in reducing transfers to the owners.