Coronavirus: Impact on debt issuances

The public health emergency caused by the international COVID-19 pandemic (“COVID-19”) has made it necessary to adopt a range of measures to contain this disease and these measures are having profound economic and financial effects. At a time when there is a huge reduction in their income, companies will have to cope with enormous pressures on their liquidity. In this context, bond issuances should continue to be a growing way for companies to obtain finance, in particular, in the case of assets eligible under the European Central Bank’s (ECB) purchasing programmes. 

This note examines the following specific issues relating to the issuance of bonds by companies that must be taken into account in the current context of the COVID-19 pandemic:

• Market conditions
• Roadshows
• Due Diligence
• Prospectus / information memorandum
• Force majeure clause
• Execution