BOND ISSUE AS A SOURCE FOR FINANCING ENTERPRISES UNDER THE CONDITIONS OF THE CZECH CAPITAL MARKET

A lack of financial resources is one of the key factors constraining the expansion and growth of enterprises. Such a deficit is particularly obvious with regard to long-term resources. As the internal resources of enterprises are insufficient for financing the corporate investments, external resources are sought-after (bank and trade credits, leasing, share issue, bond issue, private equity). The paper analyzes the option of bond issue, especially as an alternative to bank credits, under the conditions of the Czech Republic. In the Czech Republic, just as in the rest of Europe, the interest of enterprises in the bond issue has been growing in the recent years. The reason is a persisting lack of willingness on the side of bank institutions to credit enterprises due to higher potential credit risk associated with the continuing economic recession and also the increased interest of investors in capital market instruments, such as corporate bonds. Corporate bonds are - even in the period of economic recession - considered as relatively more profitable investment, especially compared with government bonds, and also relatively safer investment, especially compared with stocks. The methodologies applied cover the synthesis method, causal method, system and ratio analyses, inductions, deductions and comparisons of selected indicators within EU.