№ 7/2021

Fìnansi Ukr. 2021 (7): 53–71https://doi.org/10.33763/finukr2021.07.053

MARKET OF FINANCIAL SERVICES

SHELUDKO Natalia ¹, SHISHKOV Stanislav ²

¹Institute for Economics and Forecasting of NAS of Ukraine
OrcID ID : https://orcid.org/0000-0001-6936-3158
²Perspektiva Stock Exchange PJSC
OrcID ID : https://orcid.org/0000-0003-4440-9572

Targeted corporate bonds: risks and feasibility

The conditions for attracting and the availability of capital to finance construction are important for the economic development of Ukraine. The article considers how the institutional environment and variability of legislation, in particular, in the investment and fiscal spheres cause developers and participants in capital markets to constantly search for the most optimal in terms of taxation and least risky instruments for financing construction, one of which is corporate target bonds. To assess the risks of using target bonds in construction financing, the evolution of the legal form of issuance, circulation and redemption of target corporate bonds in Ukraine was considered, which was too late to avoid large-scale defaults and too fragmented to properly protect investors’ rights. The rudimentary nature of target real estate bonds in Ukraine, their inconsistency with the EU experience in terms of regulation and practice of capital and real estate markets. The functionality of the existing publicly available databases on the stock market of Ukraine for aggregation and analysis of information on different types of financial instruments, including target corporate bonds were confirmed. Investment and fiscal risks of using target corporate bonds for real estate financing are studied. It is proved that the scheme of financing construction through the issuance of target corporate bonds has significant risks for investors and developers. The contradictory nature of the implementation of EU legal norms on the classification of financial instruments and the lack of adequate mechanisms to protect investors in target corporate bonds are substantiated. To deepen the analytical justification of the results in further research, it is advisable to pay special attention to a comprehensive study of the advantages and disadvantages of existing and future models of construction financing in regularly updated legislation, in particular in the field of taxation and capital markets regulation.

Keywords:stock market, securities, issuer, investor, developer, housing construction, real estate, targeted corporate bonds, default

JEL: G12, G18, G23, G28, K22

SHELUDKO N. . Targeted corporate bonds: risks and feasibility / N. . SHELUDKO, S. Shishkov // Фінанси України. - 2021. - № 7. - C. 53-71.

Article original in Ukrainian (pp. 53 - 71)

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