Nova Issues a Corporate Bond

. [PDF] and a whopping 2% on your investment.

The amount of the bond is interesting. I wrote earlier that with Nova still dealing with a mountain of complaints, it is having to pay out about 5 billion yen a month in refunds, and in doing so, are sucking the bank accounts of individual schools dry. Then there's the problem of Nova staff not beng being paid their salaries for 5 days. 750 million can't possibly cover any of these expenses or hope to solve them.

It seems that Nova has borrowed the money it needs to pay salaries for July. What does Nova do for an encore in September?

Article from the Nikkei Shimbun

ＮＯＶＡ、社債発行で７億円調達へ

　

英会話学校最大手のＮＯＶＡは7日、バンク・オブ・バミューダ（ケイマン諸島）を割当先とする第三者割り当て方式で無担保社債の発行を決めたと発表した。調達額は7億5000万円で、利率は年利2％。8月6日に申し込み、払込期日は7日。償還期限は2008年の8月6日。財務体質の強化と運転資金の調達が目的という。(15:00)