Legal Q&A · Company financing

We offer bonds to fewer than 150 investors. When will the exemption fail?

Law as at 9 August 2026

Short answer

What matters is who the offer is addressed to, rather than how many people ultimately buy the bond. The communication must clearly show that it targets no more than 149 persons, for example by defining the recipient category. If basic bond information is published on a publicly accessible website, the National Bank of Slovakia treats it as a public offer requiring a prospectus. Saying the page serves only investors already contacted does not satisfy the exemption.

Count offer recipients, not purchasers

The Prospectus Regulation exempts an offer addressed to fewer than 150 natural or legal persons per Member State, other than qualified investors, from the prospectus publication requirement. The exemption serves proportionality: preparing a prospectus would impose an excessive burden for a small audience. A recital gives the example of an offer addressed to a limited number of relatives or personal acquaintances of company managers.

In its guidance on public offers of securities, the National Bank of Slovakia emphasises that the number of people who acquire the offered security is irrelevant to assessing the exemption. The relevant question is who receives the offer. The communication must clearly show that it targets only 149 persons. This can be achieved, for example, by defining a category or group of recipients that meets the exemption.

Where the exemption is most often lost

A typical scenario: the issuer directly approaches a small group of investors but also publishes basic issue information on a publicly accessible page for orderly recordkeeping, existing investors or transparency. That step defeats the exemption.

If basic security information — type, issuer, price or return — appears on a website accessible to the public, the NBS treats it as a public offer requiring publication of an approved prospectus unless another exemption applies. It expressly adds that claiming the page provides basic information to investors already contacted does not satisfy the exemption, because the information is available to a wider audience.

If the communication links to a page with further offer information, access must be technically restricted so that no more than 149 persons can view it, and this must be apparent from the communication.

Practical consequences for issue preparation

The limited-audience exemption is an operational arrangement: a controlled recipient list, individual delivery, restricted document access and records of what was sent to whom. If the issue relies on it, these arrangements must be in place before the first approach.

See also whether publishing terms and conditions online is a public offer and when a bond offer is a public offer.

See the scope and process of our bond issuance service in Slovakia.

This answer provides general information on the law as at 9 August 2026. It does not constitute legal services or replace an assessment of an individual case. The details of your situation may differ. Book a consultation to discuss them.

More legal questions

All questions and answers
  1. Does publishing bond terms and conditions on our website constitute a public offer? Generally yes. The Bonds Act permits publication of terms and conditions on the issuer's website, but the National Bank of Slovakia treats this as a public offer because it is ordinarily accessible to a wider audience. A declaration that the offer is private does not help. A public offer may nevertheless qualify for a prospectus exemption. An open website is particularly sensitive where the audience is limited; volume- and value-based exemptions are assessed under their own conditions.
  2. Is it enough to state in the materials that this is a private offer? No. The National Bank of Slovakia assesses a communication in substance, based on its content. A different formal title is not decisive, and a disclaimer or statement that it is a private offer does not prevent classification as a public offer. The NBS expressly adds that private offer is not a legally defined term; issuers use it for offers that do not meet the characteristics of a public offer.
  3. When do we need a prospectus for a bond issue? Slovakia's volume exemption applies to public offers with total consideration in the EU below EUR 5,000,000 per issuer or offeror over the relevant 12-month period. Relevant offers are aggregated under Article 3(2c) of the Prospectus Regulation; offers for which a prospectus has been published and offers exempt under Article 1(4) are excluded. If you rely on the volume exemption under Section 120(2), the prescribed document must be submitted to the NBS and made available to the public. Duties under other exemptions must be assessed separately.
  4. How should an offer intended only for qualified investors be labelled? The communication must unambiguously state that the public offer is exclusively for qualified investors, using wording that leaves no room for conflicting interpretations and presentation that makes it stand out. The exemption applies only to that offer: for a subsequent sale or admission to a regulated market, the prospectus requirement and any applicable exemption must be assessed afresh.

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Mgr. Patrik Tulinský, LL.M. Czech and Slovak attorney · SAK 300422 · ČAK 19654

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