Access New Markets with the “Schuldschein”
Get access to new investor groups with a typical German product: The so-called Schuldschein (promissory note) is a hybrid instrument between loans and bonds and an ideal funding tool to finance smaller amounts (starting from 25 mn Euros).
Schuldscheine are private placements and thus are not listed. As an external rating of the issuer is not essential, a Schuldschein issue is often used a first step into the capital markets.
The advantages at a glance are:
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Simple documentation - low administration efforts
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Flexible funding tool - also for smaller volumes
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Diversification of debt capital - new, stable investor base
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Relief of existing bank lines
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Liquidity management
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Preparation for a public bond issue with a rating
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No publicity (if required)
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Market testing - investor feedback
During the last two years the Schuldschein market has experienced a boom never seen before. On the issuer side the main reason for this development has been the search for attractive refinancing alternatives. On the investor side the Schuldschein has established itself as a "credit product" and become a popular tool with investors abroad.
Profit from WestLB's integrated advisory concept and the unique European distribution network.