SERVICE · FOR COMPANIES
Capital-market financing
To grow, you don't just need capital — you need the right way to raise it.
From issuing securities and capital increases to other capital-market instruments, the best funding route for your business is designed and carried out.
- For
- Companies with audited financial statements
- Provider
- MrPRX
- Typical timeline
- Varies with your situation and the type of financing; set out in the review meeting.
OVERVIEW
About this service
MrPRX reviews the company's financial position, capital structure, funding purpose and repayment capacity to identify the capital-market routes worth considering. Depending on the company, the options can include issuing securities, project finance, crowdfunding or other eligible instruments. The final choice depends on specialist assessment and approval by the relevant authorities.
INSTRUMENTS
Available instruments
- Initial public offering (IPO)Listing on TSE or IFB and selling shares to the public for lasting funding and credibility.
- Debt securities and sukuk
- Participation bonds (government and corporate)
- Ijara, murabaha and manfa'a sukuk
- GAM papers (productive credit certificates)
- Istisna (build-to-order) papers
- Capital increaseFrom cash contributions, shareholders' receivables, retained earnings or asset revaluation.
- Project and real-estate fundsFunding a specific project without raising the parent company’s capital.
- CrowdfundingA newer route suited to small and innovative businesses.
- Guarantor for a securities issueArranging the guarantor required to issue debt securities and sukuk.
FIT
Who is it for?
- Companies that need medium- to long-term funding for expansion, an asset purchase or working capital.
- Companies with audited financial statements and predictable cash flow.
- Companies that want to depend less on bank loans.
PROCESS
The process, step by step
- Understanding the need
Review of financial statements, capital structure and the project. - Choosing the instrument
Proposing the lowest-cost instrument that best fits the company's structure. - Preparing documents
Prospectus, feasibility report and valuation report. - Approvals
Following approvals through SEO, IFB and other competent authorities. - Offering
Coordinating with the underwriter and institutional investors. - After the offering
Market making, reporting and periodic obligations.
COMPARE
Compared with a bank loan
| Criterion | Sukuk issuance | Bank loan |
|---|---|---|
| Funding ceiling | Sized to the underlying asset or contract and repayment capacity; large amounts can come from many investors. | Limited by the company's credit line at the bank, its collateral and large-exposure rules. |
| Term | Medium to long term (usually several years), with no yearly renewal. | Mostly short-term (about one year) and renewed; project loans run longer. |
| Repayment | Periodic profit (e.g. quarterly); principal at maturity or in instalments, per the structure. | Monthly instalments or a lump sum at maturity, per the contract. |
| Rate and effective cost | Coupon rate plus the cost of the issuance parties (guarantor, market maker, adviser, registration); usually no compensating deposit. | Nominal rate within Money and Credit Council limits; fees and side requirements (such as compensating deposits) push the effective rate higher. |
| Collateral and guarantees | A bank or financial-institution guarantee or a credit rating, plus the underlying asset or contract. | Property collateral, cheques and promissory notes, and guarantors. |
| Time to funds | A few months for preparation, structuring and approval. | A few weeks to a few months, depending on the bank and how complete the file is. |
This is a general comparison, not a review of your company; a specialist calculates the exact ceiling, rate and cost for your situation.
Initial list
Documents to start
- Audited financial statements for the last two years
- Latest registry notice and articles of association
- Project description and funding estimate
- Current debts and facilities report
- Guarantor details or credit-rating report
The final list depends on the chosen instrument and is confirmed by a specialist.
FAQ
Questions about this service
How is sukuk different from a bank loan?
Sukuk is funded by capital-market investors, and its structure depends on the underlying asset or contract. The comparison table on this page shows the differences in size, term, repayment and effective cost; a specialist works out the exact figures for your company.
How long does a sukuk issuance take?
It depends on the sukuk type, how ready your documents and financial statements are, securing a guarantor and the review time of the regulators; it usually takes a few months. After the initial assessment, a specialist gives you a timeline for your file.
How much can be raised through sukuk?
The amount depends on the value of the underlying asset or contract, the company's repayment capacity in its financial statements and the guarantor's capacity. The initial assessment estimates an approximate ceiling for your company.
Which companies can raise funds through sukuk?
Companies with audited financial statements, an operating track record, enough cash flow to repay, and a suitable asset or contract for a sukuk structure. Being listed on the stock exchange is not required; the exact conditions are checked for your company against the latest market rules.
How are principal and profit repaid?
Profit is usually paid periodically (for example quarterly) to holders through a paying agent, and the principal is repaid at maturity or in instalments depending on the chosen structure. The payment schedule is fixed and announced before issuance.
What documents are needed to start a sukuk issuance?
To start: audited financial statements for the last two years, the latest registry notice and articles of association, a project description with a funding estimate, and a report of current debts and facilities. The full list is under "Documents to start" and is finalised once the structure is chosen.
RELATED
Related services
Money-market financing
Working-capital facilities, debt purchase, GAM papers, bills, LCs and special deposit certificates.
DetailsSupply-chain finance
Joint investment projects built on the capacity of both sides.
DetailsListing & IPO advisory
Brokerage and listing services, advice and trading on the securities, commodity and energy exchanges.
Details