Tag Archives: Corporate Debt Financing / Corporate Debt

Germany hatched a plan to attract green investment capital | Instant News

BERLIN (Reuters) – The German government is planning a new green financing strategy to direct capital into environmental projects and develop Germany into a leading center for sustainable finance, plans seen by Reuters show.

The so-called Sustainable Finance Strategy Plan lists 26 individual steps and will be adopted by the cabinet on Wednesday with a view to mobilizing investment for climate protection projects.

“The federal government wants to develop Germany into a leading location for sustainable finance,” said the plan, which is in line with the United Nations Sustainable Development Goals.

The plan aims to support the EU to become carbon neutral by 2050 – a target the European Commission estimates will require 350 billion euros to be invested annually.

The plan also responds to investors demanding that more companies comply with environmental, social and governance (ESG) criteria.

To help investors, the German plan envisions a sustainable “traffic light” system that makes it easier to identify green investment opportunities.

Berlin wants to coordinate traffic light plans with the EU if possible, but if it can’t move quickly with the bloc it will start with Germany’s Federal Environment Agency.

The government also plans to increase export credit guarantees and assistance for green projects, and to reallocate € 9 billion in equity held in pension and welfare funds into green investment.

With the Greens now topping most polls, Chancellor Angela Merkel’s conservatives and their Social Democratic coalition partners are eager to laud their green credentials ahead of September’s federal elections.

The government envisions this year’s green bond issuance to be similar to 2020, when it launched its first two green bonds with a combined volume of 11.5 billion euros.

A 30 year green bond is planned for May, with 10 year issuance to follow in the second half of this year.

Written by Paul Carrel; Edited by Cynthia Osterman


image source

Eletrobras Brasil said SEC enforcement units asked for information | Instant News

FILE PHOTO: The logo of Eletrobras, a Brazilian electric utility company, is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, USA, April 9, 2019. REUTERS / Brendan McDermid

SAO PAULO (Reuters) – Brazilian state-controlled power company Eletrobras said the Securities and Exchange Commission’s enforcement ruling had requested information on some of the mandatory loans provided by industrial power users, without specifying potential problems.

More than 60 years ago, the Brazilian government forced industrial companies to finance expansion of the country’s power sector, pledging to repay loans.

However, payments are constantly being delayed and the government says it could later be done in Eletrobras stock, creating a legal battle.

Eletrobras also said it would delay filing the 20-F form, which was originally expected on April 30, to review its 2018 and 2019 financial statements to better reflect its employees’ retirement plans. The company does not expect significant changes.

Eletrobras hopes to deliver the 20-f on May 15.

Reporting by Carolina Mandl and Luciano Costa; Edited by Chris Reese and Cynthia Osterman


image source

The Ferragamo exec said Italy was missing a strong national airline | Instant News

ROME, April 30 (Reuters) – Italy senses a lack of strong national airlines that can boost tourism and the economy as it emerges from the pandemic, said executive vice chairman Salvatore Ferragamo on Friday.

Michele Norsa’s comments are among the first by a senior Italian executive to reflect growing concerns about the issue amid an escalating political crisis over the national airline and a relaunch delay.

“Now more than ever we feel a lack of operators who can accompany this transition and who have systematic and frequent relationships with other markets, not only with Asia but also with America,” he told a conference.

Rome last year began restructuring Alitalia and launched the ITA, which was supposed to replace the cash-strapped airline, hit by years of losses, in early April.

But this was put off by lengthy negotiations with Brussels over a new injection of capital and a whole new airline organization.

Norsa said the luxury sector needed to focus its energies on bringing travelers – both leisure and business travelers – to Italy, one of the world’s top tourist destinations.

ITA Chief Executive Fabio Lazzerini earlier this week said the group aims to start flying on July 1, seizing the last window of opportunity to do so in the summer.

Reporting by Giulia Segreti; Edited by Andrew Heavens


image source

The revamped Italian airline prepares to take off in July as EU talks drag on | Instant News

MILAN, April 27 (Reuters) – A new Italian airline hopes to replace Alitalia from July 1, the chief executive of the state-owned airline said on Tuesday, although some European Commission hurdles still need to be overcome.

Rome last year embarked on plans to restructure Alitalia and launch the ITA, which was supposed to replace cash-strapped airlines, hit by years of losses, in early April.

This was put off by lengthy negotiations with Brussels that risk ruining the project unless ITA seizes the last window of opportunity in the summer, said CEO Fabio Lazzerini.

“We need to start quickly as the market (traffic) is increasing and … rivals Alitalia are acting aggressively, especially low-cost airlines,” Lazzerini said, citing Ryanair’s plans to offer 100 routes in Italy over the summer.

“We aim to start flying on July 1 with a small number of planes which will gradually increase over time,” he said during an audience with four Italian parliamentary committees.

While the ITA is in talks with the European Union Competition watchdog about its plans, it is also in talks with Air France-KLM, Delta and Virgin on the one hand and Lufthansa on the other about a possible partnership, he added.

A decision on partners is expected by the end of June, Lazzerini said, adding that discussions with the Commission are ongoing and the main concern is whether the new airline can purchase the Alitalia brand, its loyalty program and the majority of Milan’s Linate airport slots.

The ITA is also trying to convince Brussels that it needs the handling and maintenance business of the former airline.

Under EU state aid rules, there needs to be economic discontinuity between the ITA and Alitalia for Brussels to allow Rome to inject 3 billion euros ($ 3.6 billion) into new airlines.

Prior to the coronavirus pandemic, Alitalia owned nearly 70% of Linate’s slots and the ITA rejected EU requests to give up half of it.

This position was driven by a desire to keep them out of the hands of competitors and also use them to propel rival airlines into industry partnerships. ($ 1 = 0.8280 euros) (Reported by Francesca Landini; Edited by Alexander Smith)


image source

UPDATE 1-buy-now-pay-later Australian Zip company to raise $ 307 million for expansion | Instant News

(Add details, background)

April 14 (Reuters) – Australia’s buy-now-pay-later (BNPL) Zip Co said Wednesday it will raise A $ 400 million ($ 307.48 million) through senior unsecured conversion notes to fund its growth and expansion plans.

On Tuesday, the company BNPL reported record quarterly earnings and announced plans to expand into Canada and Southeast Asia.

“The additional capital from this offering will support the active pursuit of core and international growth opportunities,” said Chief Operating Officer Peter Gray in a statement.

The company BNPL, which allows users to pay for their purchases in multiple installments, has seen an explosion in transaction volume and active customers as the pandemic drastically changed consumer behavior, moving more towards the online space.

Zip, which saw transaction volumes more than double in the March quarter, took a strategic stake in Philippine company TendoPay and carried out a soft launch in Canada during the quarter in a bid to better compete with bigger rivals such as Afterpay.

Senior banknotes are expected to be listed on the Singapore exchange, Zip added.

$ 1 = 1,3009 Australian dollars Report by Sameer Manekar in Bengaluru; Edited by Rashmi Aich


image source