Aktiebolaget Kreuger and Toll - 1928 dated Swedish Bond - Sweden
Inv# FB6148 Bond
40 Kroner 5% Bond. Ivar Kreuger.
Kreuger & Toll, a construction and holding company, was established on May 18, 1908, by two Swedish engineers, Ivar Kreuger and Paul Toll. Henrik Kreüger, Ivar’s cousin, served as a consultant and chief engineer.
In early 1908, Ivar and Henrik Kreüger had the ambitious plan to establish a construction company that would work for the US company Trussed Concrete Steel Co. on the Swedish market. Their goal was to promote Trussed Concrete Steel Co.’s innovative building methods based on reinforced concrete. At the same time, Henrik Kreüger introduced Paul Toll to Ivar.
Ivar formed the company with Paul, who had several years of practical experience in the construction business as an engineer. Paul had previously served as the site manager for the Swedish construction company Kasper & Höglund AB.
On May 18, 1908, Kreuger & Toll was officially founded with a total start capital of 10,000 SEK. The company was structured as a construction company, with Ivar Kreuger owning 60% and profits being split 50/50. The initial capital was raised by the banker Oscar Rydbeck, who became Ivar’s primary bank contact and economic advisor throughout the company’s history, except for the infamous Kreuger crash in April 1932.
On August 10, 1911, Kreuger & Toll underwent a legal transformation and became an AB, officially known as Kreuger & Toll AB.
A bond is a document of title for a loan. Bonds are issued, not only by businesses, but also by national, state or city governments, or other public bodies, or sometimes by individuals. Bonds are a loan to the company or other body. They are normally repayable within a stated period of time. Bonds earn interest at a fixed rate, which must usually be paid by the undertaking regardless of its financial results. A bondholder is a creditor of the undertaking.
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