Private Placements

A private placement, or a non-public bond offering, is a financial instrument that usually has a fixed rate of interest, and which is issued by an SME in order to raise capital. The increased capital requirements for banks have led to a decline in the awarding of credit facilities. With this product, Merit Capital can bring together investors and businesses to meet the demand for capital on the one hand, and the demand for fixed-yield investments on the other.

What are the advantages for the SME?

  • Issuing bonds allows the existing shareholder structure to remain unchanged.
  • In the hierarchy of creditors, bondholders are ranked lower than banks, which means fewer guarantees are required.
  • The finance can be raised amongst a group of local investors who have an aversion to volatile investments.

What are the advantages for the investor?

  • A fixed return over a fixed period in line with the risk assessment.
  • Clearly defined guarantees are awarded to the bondholders.

The added value of Merit Capital?

Merit Capital has extensive experience in the development and placement of bonds for the SME segment. The issuer supplies the necessary information, which after a thorough analysis is used to draw up an Information Memorandum, which will provide potential investors with best-effort information.

For more information about Private Placements, please contact us at