Private placement is a method of selling a new issue of bonds. In a competitive sale and a negotiated sale, bonds are eventually offered to the public. In private placement, by contrast, the bonds will not be offered to the general public. Instead, bonds are sold directly to a single investor such as a bank or a small number of investors. In some cases, the investor may be required to hold the bonds until they mature, or may be subject to other restrictions regarding selling them.
