Natixis acted as joint lead manager for the first Schuldschein issue of Elkem, the Norwegian silicone materials company and member of the well-known Chinese conglomerate ChemChina.
The initial €100m planned transaction was upscaled to €215m as a result of overwhelming subscription. Net proceeds will be used for general corporate purposes.
This deal is the final step in Elkem’s debt refinancing following its IPO early 2018 and its €1.150bn banking debt refinancing in which Natixis acted as MLA Bookrunner.
It also represents a new milestones in Natixis-Elkem close relationship.
Natixis leverages its various business lines’ skills and provide best solutions to accompany clients in their financial strategies.
What is a Schuldschein?
The Schuldschein is a type of private placement that emerged in Germany in the mid 19th century.
Size of this market is c. €25bn annually with average tenors of 3 to 7 years.
Issuers use this tool to finance, growth, M&A or debt refinancing.
This type of set-up enables large and midcaps, and especially Non Rated companies, to gain access to the capital markets. Legal documentation is simplified, which allows for faster fund-raising at competitive cost.
“The Schuldschein market is not any more a German market for German issuer only, but now a Pan-European market with non-German issuers representing around 40% of total volumes. In 2019, we have seen seven French issuers for around €3bn coming to this market and more and more non German bank and insurance companies as investors. Natixis is an active participant in this market.” said Michael Haize, Head of Global Debt Capital Markets.