Quasi equity
Recent years have seen a convergence of debt and equity, with an accelerating trend to the creation of structured equity raisings.
Issuing companies choose hybrid funding to capture benefits including:
- Cost of capital
- Reduction in dilution
- Share register management through accessing new classes of equity investors
- Diversification of capital base and capital holders
- Ratings benefits
- Extension of brand franchise to the capital markets
- Risk management approach to capital
Companies with foreign operations may capture additional benefits of:
- Alignment of the shareholder base with the asset, revenue, profit, tax and customer bases
- Further cost of capital improvements that can arise from some cross-border structures
View our notable transactions.
