Updated: Carillion and Steinhoff reduce Schuldschein issuance

Post Date: 18/04/2018

By Ioannis Gougoulias

The analysis below was retrieved using CMDportal's Data Sheet and Instrument Search tool. In particular we used the filter Distribution = Schuldschein. 



Carillion and Steinhoff reduce Schuldschein issuance

Although, the Schuldschein market had a stellar year in 2017, when it grew 18%, this trend does not seem to have continued in 2018 so far. In total, based on our calculations, the amount of Schuldschein issuance declined by EUR2.8bn, suggesting a 38% drop YoY. The main contributors of this amount were German issuers, who raised close to EUR2.9bn. Dutch issuers followed with EUR1bn, while Austrian and Finnish Corporates raised smaller amounts. Swedish issuers made their first appearance in the specific market with EUR150m. Furthermore, the number of borrowers dropped from 33 to 24, an additional sign that the market is not as boisterous as in 2017.

Additionally, we see that Schuldschein borrowers have been selective in the currencies that they issue. EUR and USD are the only currencies in which deals have been recorded so far. As expected the vast majority is done in the EUR currency. Compared to 2017, when issuers opted GBP deals and niche currencies such as CZK, the market seems to be more muted.

The Schuldschein issuers YTD come mainly from Corporate sector, contrasting 2017 YoY data, when FIGs held a small but significant part of the issuance.

However, it is still early days to conclude on 2018 Schuldschein issuance. We keep hearing that investors have great demand and fundamentals for this market have apart from credit issues (read on here) not changed. Also 11 out of the 24 borrowers tapped the Schuldschein market for the first time, of which Wihuri Packaging is an example (read more here).

The following excerpt is included in CMDportal's 2018 Winners in Debt Capital Markets hard copy publication. To access the full PDF version follow this link: 2018 CMD Awards.

In 2017 the Schuldschein Market grew 18% to EUR28bn and included deals in USD, GBP and CZK. The Schuldschein Market demonstrated strong growth with total issuance reaching EUR28bn for over 100 different borrowers. In volume is an 18% increase on 2016. In terms of number of borrowers it is a doubling.

For the first time, this included a print in CZK, next to EUR, GBP and USD. O2 Czech Republic a.s. took CZK3bn from the market in fixed and floating rate maturities for 5 and 7 years in April. The book was oversubscribed by more than 4 times. Volkswagen Financial Services AG and Porsche Holding GmbH took USD tranches as part of a EUR900m and EUR150m Schuldschein in 3, 5 and 7 years. Carrilion Plc rolled 2017 and 2018 facilities through a GBP112mn 5 year Schuldschein. For 2017 we count 17 different issuer countries issuers. In 2016 this was only 12.


Increasingly this market is becoming international, not just in terms of currencies and issuers but also in terms of investors. Chinese Banks based in London and other Asian buyers have become very busy analysing Schuldschein borrowers and credits. The average deal size is also increasing. Some deals, like for example the EUR900m for Volkswagen Financial Services and a similar sized deal for Lonza Group AG, had both USD and EUR tranches. The largest deal came from German retailer Kaufland. It offered margins of 70-80bps and 90-100bps for 5 and 7-year EUR1.1bn financing with LBBW as the sole Lead. The deal was also in part sold abroad.

Where is this data coming from?

CMDportal is the global bond and money market utility connecting issuers, dealers and investors. The service aggregates data from a wide range of sources, including issuers, dealers and fund investors recording both who issued, who traded and who bought the instruments.

Can i produce a Debt Capital Markets statistical query like this?

Yes you can. CMDportal provides a wide range of tools to analyse bond and money markets. Data Sheet results can be downloaded as an XLS file.

Mr. Gougoulias is an Analyst at CMDportal. He can be reached at