Private Placements (PP)
Whether it is by means of Debt Certificate or packaged Note, both first-time and large issuers can access external sources of capital via Private Placements. The advantages of a PP are clear for the debt issuer as well as for the investor:
The issuer is able to tailor details such as size, term and interest payments to his exact needs. Combining the PP with a Swaption (long or short) further increases the range of possibilities.
By utilizing a PP, an investor has the opportunity to allocate capital to products from top quality issuers to which he may not otherwise have access, such as those from the infrastructure sector.
In contrast to bond transactions, those involving debt certificates are traded directly between the issuer and the investor. Since ContiCap appears only as an agent, both counterparties maintain a direct relationship with each other.
The PP flexibility allows us to attach an ISIN to the issue and, in the case of a Note, to execute "Delivery vs. Payment."
Our offering process integrates the investor from the very beginning and offers the possibility to actively carve out margins. Lower yields in the bond market coupled with greater risk aversion, will make Private Placements increasingly attractive in the future...