Contributing to the development of Ukrainian stock market, ALTERA FINANCE IG is actively developing new project financing mechanisms and implementing financial products designed to meet client needs in the best possible way.

In an emerging market, players necessarily have to resort to a wide range of financial instruments that would provide optimum organization of cash flows and increased efficiency, while accounting for the constantly changing Ukrainian legislation.

In view of that, we offer our clients issuing targeted, discount and interest-bearing bonds.

In 2004, ALTERA FINANCE IG has developed a technique for issuing construction bonds, which replaced the now illegal investment agreements. Nowadays, these targeted bonds are used by developers all over Ukraine, and the technique is truly believed to be the best and most efficient way to raise funds for a construction project.
Issuing construction bonds works in a following way:
issuer (the company that owns or rents the land plot to be developed) issues targeted bonds for financing the construction and guarantees that the investor will get floor space in the building when it is constructed. In this way, the developer can raise funds now and provide property later, after the construction is over, thus paying off the bonds.

Here is the list of construction projects financed with the help of ALTERA FINANCE and its targeted bonds

Direktsiya administrativnyh zdaniy (‘Directorate of administrative buildings’) LLC

Donetsk, total issue value of UAH 195.8m.

TPK Stroyservice LLC

Avdeevka in Donetsk region (over UAH 13m). Targeted bonds for financing the construction of a residential building in Avdeevka with a total floor area of 7178 m2.

Industrial and commercial enterprise NOTECHS LLC

Sumy (over UAH 59 m). Issuing targeted bonds to construct a residential building with a total floor area of 16719 m2.

UKRTEPLOTSENTRAL LLC

Donetsk (over UAH 16 m, currently under development). Issuing targeted bonds to construct a residential building with a total floor area of 4291 m2.

Discount bonds – bonds placed at a price below par value. The margin between the purchase price and the par value is paid to the bond holder at redemption and constitutes his profit (discount).

Discount bonds have various uses, but their most frequent application is in the construction of non-residential buildings. Using discount bonds, the issuer can avoid submitting construction documentation to NKCPFR, which makes the issue registration much easier.