Germany has established itself as a strategic market for Spanish companies seeking to diversify their funding sources. Following the pioneering entry of Acciona and the subsequent arrival of subsidiaries such as Telefónica Deutschland and ACS, it is now the turn of the Spanish construction company Sacyr, which is preparing its debut in the German private debt market through a financial product known as schuldschein.
Sacyr has launched an initial issuance with a modest request of 50 million euros, but this amount is just a starting point. Previous experiences in the schuldschein market show that demand can greatly exceed initial expectations. For example, Telefónica Deutschland began with a 150 million issuance and managed to increase its funding to 360 million, while Hochtief, an ACS subsidiary, doubled its initial target and closed with 300 million raised.
The schuldschein market combines features of bonds and loans, as investors are typically medium-sized German banks and savings banks, typical of bank credit, but with longer terms similar to publicly traded debt. One of the main advantages is the flexibility to tailor issuances to the issuer’s specific needs by adjusting terms and tranches, with less bureaucracy and a faster process. Additionally, competition among investors has led to more favorable conditions than those of traditional publicly traded debt.
In Sacyr’s case, the issuance has been structured into four tranches with maturities of three, five, and seven years, plus a floating tranche. The initial offer contemplates a yield payment ranging from 300 to 375 basis points depending on the term, although these figures could improve if demand exceeds expectations. Similarly, the final amount raised could increase depending on market interest, although Sacyr has opted for a cautious start since this is its first experience with this type of financing.
For this operation, Sacyr has relied on the Spanish investment bank Beka Finance and the German bank Nord/LB, which provide access to local investors. The company is presenting the offer to potential buyers, who have until mid-month to submit proposals, when the final results and the costs associated with the issuance will be announced.
The funds raised will be used to cover the company’s general needs, which closed the first quarter with a net debt of 4.177 billion euros, mainly composed of project financing (3.053 billion), bank debt (442 million), and bonds and commercial paper (682 million). This new source will help diversify both the sources and investor profiles for Sacyr.
The company’s financial context is positive, with a 9.6% revenue growth in the first quarter, reaching 972.4 million euros, and profits growing over 10%, up to 38.4 million.
With this issuance, Sacyr becomes the third Spanish or Iberian-rooted company to tap the schuldschein market so far this year, setting a record in the number of companies and volume raised. Telefónica Deutschland secured the eighth largest schuldschein issuance of the year with 360 million, while Hochtief ranks eleventh with 300 million. The leader in the ranking is Lufthansa, with 800 million, followed by Peugeot.
Globally, companies have obtained more than 10 billion euros through schuldschein loans so far this year, an increase of nearly 40% compared to the same period last year, reflecting a growing trend toward this form of financing among companies from various countries, not just Spain.
