Bonds are no longer the exclusive domain of governments or major financial institutions. Increasingly, mid-sized and larger companies are turning to this form of financing. Bonds allow businesses to raise growth capital without giving up equity, while also offering an accessible way to actively involve customers, employees, and other stakeholders in the success of the company.
Below are some inspiring examples of companies that have used bonds in a smart and successful way.
MUD Jeans – Investing in Circular Fashion
MUD Jeans, known for its circular denim model, issued bonds in 2021 to further finance its sustainable mission. With a minimum investment of €250, a five-year term, and an annual interest rate of 5%, the campaign raised over half a million euros in a short time. This allowed MUD to remain independent of traditional investors while directly engaging its community in its growth plans.
Dille & Kamille – Bonds for Expansion and Sustainability
Dille & Kamille, a beloved retail brand in the Netherlands and Belgium, issued bonds in 2022 to finance international expansion and sustainability efforts. The bonds were offered to customers and brand supporters, allowing the company to raise growth capital while deepening emotional ties with its community. Investors became part of the brand story and felt more connected to the company’s mission and values.
Fairphone – Scalable Impact Through Community Bonds
Fairphone, the Dutch manufacturer of ethically produced smartphones, has successfully issued bonds through crowdfunding platforms such as Oneplanetcrowd to scale up production and product development. These bond issues were tied to clear impact goals and attracted a large group of socially conscious investors. As a result, Fairphone managed to create both financial and social value.
Why Do Companies Choose Bonds?
Companies opt for bonds because this form of financing offers flexibility without the need to transfer ownership or voting rights. Unlike issuing shares, bonds do not dilute equity, making them attractive to founders or owners who want to maintain control. At the same time, bonds offer a compelling opportunity to financially involve loyal customers, employees, or the broader community in the company’s growth. Bonds also provide predictability in terms of cost, have a defined term, and are relatively simple to communicate and manage.
Bonds for Employees
Besides customers and external investors, employees are increasingly being offered bonds as a form of participation. Where equity can be complex or carry legal and tax risks, bonds offer an accessible alternative. Employees can share in the company’s success, often through interest payments or performance-based returns, without needing formal ownership. This strengthens loyalty and engagement without the administrative and legal challenges of equity.
Want to Learn More?
Are you considering using bonds as a financing tool or to engage your employees? Or are you curious how this fits within a broader shared ownership model, such as a STAK structure? Learn more about how Share Council can support your organisation in an informative call.
