Schuldschein Loan Agreement

Schuldschein Loan Agreement

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While debt loans have existed for many years in Germany, in recent years they have seen a markedly increasing interest in Germany and abroad. Of the more than 160 new bond transactions in 2017, worth more than 25 billion euros, about 30% were launched by international borrowers. Huhtamaki has signed a debt loan contract of 150 million euros There are two different ways to place a debt loan, either on the “direct model” or on the “indirect model”. Under the less common direct model, the loan agreement is agreed directly between the borrower and the investor as a lender. However, as a general rule, an arranger, on the indirect model, signs the bond loan contract as the initial lender, which then pays the loan in bonds only to the extent that it has received commitments and corresponding payments from other lenders. After disbursement, the original lender transfers the receivables on the bond loan to other lenders (by assumption in the respective parties). German bond lending has been an important part of the German corporate finance landscape for many years, but had little international importance. Recently, however, the obligation has appeared on the international scene and the cries of “recall” are growing louder. In 2018, only about half of the debt lending volume was granted to German companies, the other half coming from international borrowers mainly from Austria, France, Benelux, Italy, the Nordic countries and the United States.

The list of the biggest bond transactions of 2018 reflects this trend: it includes rewe Group (food and holiday travel with a turnover of 1,000,000 euros) and Faurecia (international parts manufacturer car dealerships with a Deal-Size: 718,915,589 euros) with a dealer deal and holiday with a turnover of 1,000,000,000 euros. In February 2019, Barry Callebaut, one of the world`s largest cocoa producers based in Zurich, successfully placed his first debt note worth 600,000,000 euros. This transaction is particularly noteworthy, since Barry Callebaut has for many years been a repeat site in the high-yield bond market in the United States and was issued in accordance with New York law, but entered the European market.