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Maintained by Udržuje: The Center

CORPORATE BONDS

Corporate bonds are one of the most useful financing tools that real companies use to get funds. Sim Companies simulates real world corporate bonds in a simpler way, the aim is to simplify the mechanics.

Funding is essential to get your company going, however, it is also a high risk element. If a company borrows too much at a high interest, it can make the game play a bitter experience. This is mainly why the bonds feature unlocks at level 10 when it's assumed you are a skilled businessman by now and know what you are doing.

WHAT ARE BONDS?

Bond is essentially a debt, or an 'I owe you' paper. When companies sell bonds, they get money in return, which they will have to pay back later. The bond buyer/owner receives an interest while he owns the bond.

In Sim Companies, the bonds cannot be re-sold, so the mechanics of bond's life-cycle is kept simple. The bond is issued by the bond issuer (the company seeking funds). Bonds are put on the exchange for potential buyers to see. Once the bond is purchased, the bond issuer/seller gets the money, and the bond buyer/owner will receive daily interest from now on. As mentioned earlier, the purchased bonds can't be re-sold to other companies.

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Překlad: Tous group

KORPORÁTNÍ DLUHOPISY

Korporátní dluhopisy jsou jedním z nejužitečnějších nástrojů financovaní, který reálné společnosti používají k získání prostředků. Sim Companies napodobuje reálné korporátní dluhopisy v jednodušší podobě, účelem je zjednodušit mechanismy.

Financování může být nezbytné pro zachování chodu vaší společnosti, ale může to být i vysoce riskantní. Pokud si společnost půjčí příliš mnoho s vysokým úrokem, může to přinést dosti hořkou zkušenost. To je hlavní z důvodů, proč jsou dluhopisy dostupné až od úrvoně 10, kdy už se předpokládá, že jste zkušenější podnikatel a víte, co děláte.

CO JSOU DLUHOPISY?

Dluhopis je v podstatě dluh nebo dlužní úpis. Když společnost prodá dluhopisy, získá peníze, které bude muset splatit později. Kupci/vlastníkovi dluhopisu je vyplácen úrok po dobu, po kterou dluhopis vlastní.

V Sim Companies nemohou být dluhopisy přeprodávány, čímž je “životní cyklus” dluhopisů zjednodušený. Dluhopisy vydává vydavatel dluhopisů (společnost, která hledá financování). Dluhopisy jsou zveřejněny na burze pro potenciální kupce. Jakmile je dluhopis koupen, vydavatel/prodejce dluhopisu dostane peníze a kupec/vlastník dluhopisu od teď bude dostávat denně úrok. Jak již bylo zmíněno, koupený dluhopis nelze přeprodat jiné společnosti.

Jakmile společnost, která vydala/prodala dluhopis, už nechce platit úroky, může dluhopis splatit (možné po 14 dnech), to znaméná, že tato společnost koupí tento dluhopis zpět. Musí vrátit půjčenou částku, ale už nadále nemusí platit úroky.

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SELLING BONDS

Issuing or Selling bonds means you are allowing other players to loan you cash.

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You can edit your offerings in the exchange or finance tab if would like to change the Amount and Interest offered or if you made any mistakes.

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HOW TO USE BONDS EFFECTIVELY

The art of using this feature efficiently is in knowing what your Return on Investment (ROI) is, or what it actually will be, after you get the funding, and adjusting your interest rate accordingly.

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You may have a good supplier who's delivering reliably the resources you want. But the quantities are just not there yet. You can buy his bonds, giving him the boost he needs to expand and better fulfill your needs!

BUILDING RETURN ON INVESTMENT (ROI)

Let's illustrate with a few examples and real numbers plugged in. Please note that your production and selling price may differ depending on the cost of your labor and input resources. Use these just as guidelines. Take a look at the ROI (return-on-investment per day) If this is higher than your bond interest, you will make more money than what you pay on the interest.

Warning! You should take into account that lvl 3 of any building, costs twice as much as a lvl 2 upgrade while giving the same production uplift, so if lvl 1 and lvl 2 building generates 10% ROI, then the level 3 will only do 5%. Also, the more buildings you have the higher administration cost, so you can also expect your labor costs to go up. The safest way is to issue the bonds gradually, few at a time, one building at a time.

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Power plant (lvl 1)

Input Parameters

Building cost (investment)

$51,750

Power produced

2,566.9 / hour

Power production cost

$0.17

Power selling price

$0.24

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Profit selling with contracts

$4,312 / day (8.33% ROI)

Profit selling on market

$4,183 / day (8.08% ROI)

Plantation (lvl 1)

Input parameters

Building cost (investment)

$6,900

Apples produced

202.2 / hour

Apple production cost

$1.7

Apple selling price

$2.15

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Note: The transportation cost plays a major role in the food industry, which is why selling using contracts/market has very different ROI when compared to selling with retail.

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Electronics factory (lvl 1)

Input parameters

Building cost (investment)

$82,800

Batteries produced

25.3 / hour

Battery production cost

$65

Battery selling price

$77

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Profit selling with contracts

$7,165 / day (8.65% ROI)

Profit selling on market

$6,825 / day (8.24% ROI)

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BUYING BONDS

If you are looking to loan out your cash to other players then this is called Buying bonds. This is done through the Exchange. There are six (6) categories to buy from based on the Ratings of the companies.

Note: Companies can invest only a % of their own worth into a single company. Limit of 1% up to level 15, limit of 3% up to level 20, and limit of 5% level 20+.

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HOW DO I PAY/COLLECT THE INTEREST?

  1. When and how do I pay the interest?

  2. How do I collect interest if I bought someone’s bonds?

The money is automatically deducted/paid starting at 00:00 UTC (midnight). The deduction/payments has to process the entire player database and does not happen instantly.
See Time Table in the Library for your local time and how long it may take.

HOW MANY BONDS CAN I SELL?

You are limited to selling bonds based on your Building Value (BV). Building Value is listed on your profile below your Company Value (CV).

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Note: Building Value is the scrap value of your buildings not the construction costs of your buildings. See Construction Guide about “Scrapping.”


PAYING BONDS BACK

Calling Bonds (paying bonds back) can be done after 2 weeks (14 days). In your Headquarters (HQ); under the Company Financing, open the bond by clicking on the small arrow to the left of the bond owners name.  This will drop down the bonds information and now we can click on "Callable" in the lower right of that drop-down box.

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If you are a bond owner and someone has Called the bonds before the 14 day maturity time limit – scroll down to the Insolvency section.

GUARANTEES

I am buying bonds, what's the guarantee that the bond issuing company will pay the interest? Well, there's no guarantee. Interest is deducted automatically given the bond issuing company has sufficient money. But if the player stops playing, resets or deletes the account, the bonds may be called at 60% value. It's called a bad investment, see 'Insolvency' below.

Sim Companies has its own rating agency that assigns ratings to companies based on their standing. You can use the assigned ratings as a pointer to determine the level of risk when investing in bonds.

INSOLVENCY

Bond interests are deducted in the order the bonds were sold. If your company budget does not allow interest deduction at UTC midnight, the missing payment is recorded and is paid at the next UTC midnight together with the new interest payment.

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If the company that bought your bonds is reset/deleted the bonds are transferred to non-player character (NPC) and you still need to pay the interest until the bond is called.

INSOLVENCY FOR BOND OWNERS

You own bonds and the company you bought from can’t pay the interest or goes inactive.

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Once there you can view the company profile to see how many bonds were sold and how many buildings are left.

RESTRICTIONS

Some restrictions on use of bonds are in place to create a fair-play environment and make embezzlement difficult.

  • Only companies at level 10 or higher can issue or buy bonds.

  • Companies deemed affiliated to each other by the game system cannot buy each other's bonds.

  • Interest rate is limited to range of:  0.5% to 2.0%

  • Companies can't buy bonds at lower interest than the interest rate at which they themselves have issued bonds.

  • Bonds can only be called after 2 weeks (14 days) from the time of sale.

  • Companies can invest only a % of their own worth into a single company. Limit of 1% up to level 15, limit of 3% up to level 20, and limit of 5% level 20+.

  • Companies cannot scrap buildings if the scrap would bring their asset value below 80% of their bond liability.

  • Max bonds sold is based on your Building Value (BV).

STRATEGIES

Simia wrote a short strategy guide about how other players are using the bonds and what basic strategies you can employ.

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Why Bond Markets Fill Up During Recessions and Look Empty During Booms

by Patrik Beck