The real story about what’s involved in raising debt (Case study)

This company has taken the time to learn the investor community and the value of investor relations (both for debt and equity). That gives it greater flexibility to tap the markets when it needs to and also to approach investors directly, with or without bank involvement. It has learned that you don’t need to be always in the thrall of investment banks, analysts, ratings agencies or lawyers. This session looks at how it approaches its investors, what the difference is between debt and equity investors, how it liaises with the banks and how it achieves a tailored fit with the best possible price.

Harjeet Kohli: Group Treasurer and Head of Investor Relations, Bharti Airtel Ltd, India

Lunch

Sponsored by Lloyds Bank Corporate Markets

Richard Dallas: Transactional Banking Director, Lloyds Bank Corporate Markets

Live performance on stage in the theatre of funding (Panel)

Turmoil, particularly the sovereign crisis in Europe with its implications for banks, has pushed worries about cost and availability of financing to the forefront of the corporate agenda once again. This panel of companies will talk about their experiences with availability and pricing as well as the alternative sources they have tapped or plan to consider. Where can companies turn when their banks encounter liquidity issues? What can companies do to improve bank access? What are the timing and volatility considerations when it comes to the debt markets? How important is a credit rating or defending a company's credit rating when it comes to raising finance? Is a credit rating even worthwhile these days?

Luis Montesinos: Treasury and Tax Director, Campofrio Food Group, Spain

Jan-Martin Nufer: Director Treasury and Funding, Borealis Group, Austria

Funding: Another spring clean? (Case study)

Let’s face it: companies are not going to go back to working capital inefficiency. If anything, they will continue in the drive for optimisation. The pressure is on with ambitious targets finding their way into treasury. If you’ve tidied up the house and it looks pretty good, are there still pockets of dust that need a closer look? Here is a case study of a company which thought they had near-on optimal strategy and process, but a closer inspection revealed some cobwebs hidden in the corners.

Hans van den Bosch: Director of Global Treasury Operations, Unilever, The Netherlands

Refreshment break

Branded bonds: Tapping your own story (Case study)

This internationally-expanding UK retailer has an unusual story: it’s an employee-owned business and it’s raising capital. It has tapped the public bond markets to help diversify its sources of funding, but what’s most interesting is the way it is borrowing money off its loyal retail base. A five-year, fixed-rate bond may have had a fairly attractive coupon, but the sweetener for the investors was a pick-up paid only in gift vouchers that can only be used in store and that were taxed at source. How did the company convince the authorities? The bonds aren’t tradeable or redeemable, and they are only available to the company issued credit and store card-holding customers and staff. The company didn’t use any bank intermediaries in the deal. So what are the possibilities for corporate treasurers looking to raise funds using their own brand and bypassing the capital markets altogether?

Ian Fleming: Head of Treasury, John Lewis Partnership, UK

Getting into the private placement market (Panel)

It’s safe to say that most companies have learned an important financing lesson from the credit crisis – diversify your source of funds. The move from bank financing to other avenues continues, especially for unrated companies. Private placements are typically issued by unrated corporates, privately negotiated and placed with institutional investors and can be a critical source of financing. Since bank funding can be so short term, private placements are also popular in the medium to long-term maturities. The market isn’t particularly transparent, but in the past, around 80% of deals n the US were placed with a very small pool of investors. Now more non-traditional investors are joining the fray in their hunt for yield. This session will look at the advantages and disadvantages between private placements and public bonds, choosing between US and European markets, including the currency exposure issues, and the type of information disclosure required.

Matthew Clarke: Group Treasurer, Intertek Group, UK

Martyn Smith: Director of Tax & Treasury, Dyson Limited, UK

Adjourn to Day 3