First-Time Borrowers Help Buoy Appetite for Private German Debt

Firms raising funds from Schuldschein for the first time are helping to boost this year’s bumper issuance activity after at least 31 debut borrowers turned to the German private debt market.

First-time issuers accounted for about a quarter of the 120 or so companies that have tapped the market for Schuldschein - a type of privately-placed hybrid debt instrument sold under German law -- in the first nine months of the year. That’s double the number of new borrowers seen during the whole of 2021.

More companies are opting for the private German debt deals, which have proven less ...