concession


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Concession

The per-share or per-bond compensation of a selling group for participating in a corporate underwriting.

Balance of Concessions

An agreement in which one country reduces tariffs on its imports from another country in exchange for an equivalent, or at least similar, reduction from the second country. The balance of concessions is intended to stimulate international commerce between the two countries. It is also called reciprocity or simply a concession.

Underwriting Fee

The compensation that an underwriter receives for placing a new issue with investors. It is calculated as a discount from the price of the new issue. For example, an issuer may sell the underwriter a bond at $990 per bond. The underwriter will then place the issue at $1,000, allowing it to make a $10 profit. This profit is the underwriting fee. It is also called a concession.

concession

The dollar discount from a security's retail selling price received by members of an underwriting syndicate. For example, a syndicate member paying $995 for a bond to be sold at par (that is, at $1,000) is receiving a $5 concession. Also called selling concession.

concession

(1) A discount, rebate, or abatement. Lease concessions may consist of free rent, below-market rent, a larger than normal build-out allowance, reserved parking, 5-year anniversary renovation allowance,or any number of other economic incentives to induce one to lease in a particular building. When investigating the purchase of an income-producing property, one should examine each and every lease in its entirety to determine the existence of any lease concessions that would adversely affect an economic analysis of the property,and one should also obtain estoppel certificates from tenants so that there are no agreements outside the terms of the written leases.(2) A business that operates within the confines of another business or on another property,but usually without a lease. Examples include a shoe-shine concession at the airport, the hot-dog concession at the ball park,or the designer fragrance concession in a department store.

References in periodicals archive ?
On February 23, Prime Minister Tun Dr Mahathir Mohamad announced a proposal to take over the four highway concession companies, and on June 21 the Finance Ministry officially made a conditional offer to acquire the four concessionaires.
The concession agreement defines the installed power of 49.5MW for the Grebak Wind Farm with a planned annual production of 130GWh.
This is viewed as an attempt to enable the Ministry of Finance to collect land concession fees from project developers, Chaleun said.
'Again, since the port concession review is majorly going to look at reviewing the Lease Fees and Cargo throughput fees being paid to government by the terminal operators, including the existing agreement and their durations, some people in the NPA feel there is no need bringing in the Shippers Council onboard the port concession review process.
Increasing Average Concession Life: Vinci's increasing average concession life underpins the group's cash flows with predictable revenues.
Solomon said the establishment of the multi-stakeholders' platform, a tripartite body comprising of the community, company and partners, is a means of ensuring there is peace and harmony in the concession area.The Sime Darby Oil Palm Company, remains the lone and biggest concession company currently operating in Senjeh District.
In the Umm Shaif and Nasr concession, PetroChina joins France's Total and Italy's Eni, which were recently awarded a 20 per cent and 10 per cent stake respectively.
In February 2017, CNPC was awarded an 8% interest in Abu Dhabi's onshore concession, which is operated by ADNOC Onshore.
Total contributed a participation fee of $1.15bn to enter the Umm Shaif and Nasr concession and a fee of $300m to enter the Lower Zakum concession.
Total contributed a participation fee of Dh4.2 billion ($1.15 billion) to enter the Umm Shaif and Nasr concession and a fee of Dh1.1 billion ($300 million) to enter the Lower Zakum concession.
Summary: French Energy Company awarded a 20% stake in the Umm Shaif and Nasr concession, 5% interest in the Lower Zakum concession