Corporate financing is the choice between capital generated by the corporation and capital from external investors. However, since the financial crisis shook the markets in 2007–2008, financing opportunities through the classical means of financing have decreased. As a result, corporations have to think in alternative ways such as issuing corporate bonds.
A market for corporate bonds exists in countries such as Norway, Germany, France, the United Kingdom and the United States, while Denmark is still behind in this trend. Some large Danish corporations have instead used foreign corporate bonds markets. However, NASDAQ OMX has introduced the First North Bond Market in December 2012 and new regulatory framework came into place in 2014, which may contribute to a Danish based corporate bond market.
The purpose of this article is to present the regulatory changes in Denmark in relation to corporate bonds. The purpose is further to analyse the tax consequences of issuing bonds in both a direct issue of bonds and through securitization.Intertax