Mini bonds are a type of normal bonds that are issued in limited numbers inside bond segments of SMEs firms, without listing bonds on a stock market. Mini bonds are short term investments normally up to 5 years with high return rate of approximately 7% annually. Mini bonds were first used as financial instrument during the aftermath of 2007-2008 financial crisis in order to decrease firm’s dependence on bank loans. Mini-bonds due to their relative higher rate of return, involve higher risks. If the issuer of bonds does not perform well, the investors bear the risk of getting no returns on investment becausethese bonds are also highly illiquid as they are not listed on a stock market.
