HOW TO RAISE DEBT, MEZZANINE AND EQUITY CAPITAL IN SERBIA OR MONTENEGRO
Challenges to raising capital in Serbia or Montenegro
Raising debt, mezzanine and equity capital for corporate finance or project and real estate finance in Serbia or Montenegro presents unique challenges due to the specific economic and regulatory landscapes of these countries. In Serbia, for instance, companies may seek guidance from financial advisory services such as SEECAP, which offers expertise in optimizing capital structures and strategic execution of capital raising. We provide a comprehensive approach, from initial assessment to the successful execution of raising capital, ensuring alignment with business goals.
Moreover, understanding the intricacies of the capital markets is crucial, and training courses are available to master trading strategies and gain deep insights into market dynamics and investment principles. Additionally, for company or asset acquisition financing, there are specialized services that focus on raising debt, equity, or mezzanine finance, tailored to the regional context of Serbia, Bosnia, and Montenegro. These services are vital in navigating the complex financial landscape, where local knowledge and expertise can significantly impact the success of capital acquisition endeavours.
It's essential to consider the impact of global economic conditions, such as inflation and the war in Ukraine, which have affected investment and consumption patterns. Additionally, the real estate sector presents unique challenges and opportunities, with a noted increase in demand despite a decrease in foreign direct investment.
For corporate finance, fostering a diverse and robust capital market is crucial, as evidenced by Serbia's efforts to encourage corporate bond issuance with World Bank assistance. Moreover, addressing issues like insufficient equity and lack of collateral can be pivotal for small and medium-sized enterprises.
Capital raising process
Typical capital raising process for debt (loan), mezzanine or equity capital is described below.
Determine the need for capital
- Identify and understand client's objectives
- Review business information - historic and forecast
Capital raising documentation
- Produce capital raising documentation as appropriate for the type of capital being raised with adequate analyses, projections and financial models to attract interest in the opportunity
Approach debt, mezzanine and equity providers
- Approach "right" financiers with sector knowledge and capacity
- Assist in presentation to sources of finance
- Compare and contrast offers for finance
Negotiate debt, mezzanine or equity terms
- Assist in negotiation of financial terms and conditions
Negotiate legal documentation
- Assist with negotiation of equity or debt contract terms including Shareholder Agreement and Memorandum & Articles of Association
Completion
- Review final legal documentation
Further details
SEECAP provides debt, equity and mezzanine capital from local and international sources for corporate, real estate, hospitality and infrastructure finance.
Please contact Zoran Mitic by email or by tel +381 11 36 35 935 or mobile tel +381 63 377 960 for a discussion about your capital raising needs.