medium · Debt Capital Markets primary-issuance-syndication
What is the 'New Issue Concession' (NIC)?
- The difference between the yield of a new bond at launch and the estimated secondary-market fair value of the same credit.
- The full gross underwriting fee paid to the syndicate of banks for arranging and managing the entire bond deal
- A contractual cut in the bond's coupon rate that is triggered automatically if the company's credit rating later improves
- The pricing discount offered specifically to retail investors to incentivise participation in a sovereign government auction
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