concluded in Frankfurt, agree that more financing options are available to CFOs than ever before."
 |
| Directions
The European and especially the German finance worlds are undergoing a transition. Companies increasingly
prefer to finance themselves independently of banks. Bonds have now earned their place within the financing mix of many companies. Many large firms as well as SMEs have taken advantage of the historically low financing conditions in capital markets by placing bonds this year. The Schuldschein market is simply booming. Speakers as well as participants at the event “The Credit Culture in Transition”, which was held this week in Frankfurt, believe that this change cannot be stopped.
“We've made the break early and have switched to other types of financing,” said Oliver Sawyerr, investor relations
manager at Air Berlin. The airline issued convertible bonds in 2007 and 2009, both of which it has recently bought back. In the Stuttgart stock exchange’s SME bond segment, Bondm, Air Berlin issued 3 bonds. This debt structure is complemented by a line of credit worth up to $255 million from the airline Etihad Airways, which is the largest single shareholder of Air Berlin. 
“The financing options for businesses are getting more diverse,” explains Ulf Michael Kranz,
who has been the CFO of automotive supplier Benteler’s US subsidiary since 2008 and just accepted the CEO post at aluminium wheel manufacturer Borbet in Alabama. Kranz is convinced that, “the lending business conforms to international standards, so companies that want to operate in global capital markets have increasing access to standardised procedures.” Not just credits, but other financial instruments as well, such as private placements, are becoming increasingly important. This has implications: “Companies will have to position their finance departments internationally,” Kranz says. |
No comments:
Post a Comment