国际财务管理 第七讲全球融资管理 对外经济贸易大学国际商学院会计学系制作
国际财务管理 第七讲 全球融资管理 对外经济贸易大学国际商学院会计学系制作
Exhibit 1 Internal Financing of the Foreign Subsidiary Cash Equity Real goods Funds from Funds parent company Debt--cash loans From Within Leads lags on intra-firm payables the Multinational Enterprise Debt--cash loans Funds from (MNE) sister subsidiaries Leads lags on intra-firm payables Subsidiary borrowing with parent guarantee Depreciation non-cash charges Funds Generated Internally by the Foreign Subsidiary Retained earnings 制计爱价贸易大考
Exhibit 1 Internal Financing of the Foreign Subsidiary Funds From Within the Multinational Enterprise (MNE) Funds Generated Internally by the Foreign Subsidiary Subsidiary borrowing with parent guarantee Funds from sister subsidiaries Funds from parent company Depreciation & non-cash charges Retained earnings Equity Cash Real goods Debt -- cash loans Leads & lags on intra-firm payables Debt -- cash loans Leads & lags on intra-firm payables
Exhibit 2 External Financing of the Foreign Subsidiary Borrowing from sources Banks other financial institutions ■■■■■■■ in parent country Security or money markets Funds External Local currency debt to the Borrowing from sources ■ outside of parent country Third-country currency debt Multinational Enterprise Eurocurrency debt (MNE) Individual local shareholders Local equity Joint venture partners 制卧价贸易大考
Exhibit 2 External Financing of the Foreign Subsidiary Funds External to the Multinational Enterprise (MNE) Borrowing from sources outside of parent country Borrowing from sources in parent country Local equity Joint venture partners Individual local shareholders Banks & other financial institutions Security or money markets Local currency debt Third-country currency debt Eurocurrency debt
International Debt Markets The international debt market offers the borrower a wide variety of different maturities, repayment structures,and currencies of denomination. The markets and their many different instruments vary by source of funding,pricing structure,maturity,and subordination or linkage to other debt and equity instruments. The three major sources of debt funding on the international markets are depicted in the following exhibit 制纤价贸易本孝
International Debt Markets The international debt market offers the borrower a wide variety of different maturities, repayment structures, and currencies of denomination. The markets and their many different instruments vary by source of funding, pricing structure, maturity, and subordination or linkage to other debt and equity instruments. The three major sources of debt funding on the international markets are depicted in the following exhibit
Exhibit 3 International Debt Markets Instruments Bank Loans International Bank Loans Syndications Eurocredits (floating-rate, short-to-medium term) Syndicated Credits Euronote Euronotes Euronote Facilities Market Eurocommercial Paper (ECP) (floating-rate, short-to-medium term) Euro Medium Term Notes (EMTNs) International Eurobond Bond Market straight fixed-rate issue floating-rate note (FRN) (fixed floating-rate, equity-related issue medium-to-long term) Foreign Bond 制计价贸易本考
Exhibit 3 International Debt Markets & Instruments Bank Loans & Syndications (floating-rate, short-to-medium term) Eurocredits Syndicated Credits International Bank Loans Eurocommercial Paper (ECP) Euro Medium Term Notes (EMTNs) Euronotes & Euronote Facilities Foreign Bond Eurobond * straight fixed-rate issue * floating-rate note (FRN) * equity-related issue Euronote Market (floating-rate, short-to-medium term) International Bond Market (fixed & floating-rate, medium-to-long term)
International Debt Markets ■The Euronote market: Euronotes and Euronote facilities are short to medium in term and are either underwritten and non-underwritten Euro-commercial paper is a short-term debt obligation of a corporation or bank (usually denominated in US dollars) Euro medium-term notes is a new entrant to the world's debt markets,which bridges the gap between Euro-commercial paper and a longer- term and less flexible international bond 制计价贸易大考
International Debt Markets The Euronote market: Euronotes and Euronote facilities are short to medium in term and are either underwritten and non-underwritten Euro-commercial paper is a short-term debt obligation of a corporation or bank (usually denominated in US dollars) Euro medium-term notes is a new entrant to the world’s debt markets, which bridges the gap between Euro-commercial paper and a longerterm and less flexible international bond
International Debt Markets Bank loans and syndications: International bank loans have traditionally been sourced in the Eurocurrency markets,there is a narrow interest rate spread between deposit and loan rates of less than 1%. Eurocredits are bank loans to MNEs,sovereign governments,international institutions,and banks denominated in Eurocurrencies and extended by banks in countries other than the country in whose currency the loan is denominated. The syndication of loans has enabled banks to spread the risk of very large loans among a number of banks (this is significant for MNEs as they usually need credit in an amount larger than a single bank's loan limit)
International Debt Markets Bank loans and syndications: International bank loans have traditionally been sourced in the Eurocurrency markets, there is a narrow interest rate spread between deposit and loan rates of less than 1%. Eurocredits are bank loans to MNEs, sovereign governments, international institutions, and banks denominated in Eurocurrencies and extended by banks in countries other than the country in whose currency the loan is denominated. The syndication of loans has enabled banks to spread the risk of very large loans among a number of banks (this is significant for MNEs as they usually need credit in an amount larger than a single bank’s loan limit)
Exhibit 4 Comparative Spreads Between Lending and Deposit Rates in the Eurodollar Market Interest Rate U.S.dollar 7.000% Loan rate 4.625 Eurodollar Loan Rate U.S.dollar Spread 0f4.000% Eurodollar Spread of 0.500% 4.125 Eurodollar Deposit Rate U.S.dollar 3.000% Deposit Rate 证制纤将黄多大考
Exhibit 4 Comparative Spreads Between Lending and Deposit Rates in the Eurodollar Market 3.000 % U.S. dollar 7.000 % Loan Rate U.S. dollar Deposit Rate U.S. dollar Spread of 4.000% Eurodollar Loan Rate Eurodollar Deposit Rate Eurodollar Spread of 0.500% Interest Rate 4.625 % 4.125 %
International Debt markets The International Bond Market: A Eurobond is underwritten by an international syndicate of banks and other securities firms and is sold exclusively in countries other than the country in whose currency the issue is denominated A.foreign bond is underwritten by a syndicate composed of members from a single country,sold principally within that country,and denominated in the currency of that country The Eurobond markets differ from the Eurodollar markets in that there is an absence of regulatory interference,less stringent disclosure rules and favorable tax treatments for these bonds 制卧价觉易大孝
International Debt Markets The International Bond Market: A Eurobond is underwritten by an international syndicate of banks and other securities firms and is sold exclusively in countries other than the country in whose currency the issue is denominated A foreign bond is underwritten by a syndicate composed of members from a single country, sold principally within that country, and denominated in the currency of that country The Eurobond markets differ from the Eurodollar markets in that there is an absence of regulatory interference, less stringent disclosure rules and favorable tax treatments for these bonds
Sourcing Equity Globally To implement the goal of gaining access to global capital markets a firm must begin by designing a strategy that will ultimately attract international investors. This would mean identifying and choosing alternative paths to access global markets. This would also require some restructuring of the firm, improving the quality and level of its disclosure,and making its accounting and reporting standards more transparent to potential foreign investors. 制卧价贸易上岁
Sourcing Equity Globally To implement the goal of gaining access to global capital markets a firm must begin by designing a strategy that will ultimately attract international investors. This would mean identifying and choosing alternative paths to access global markets. This would also require some restructuring of the firm, improving the quality and level of its disclosure, and making its accounting and reporting standards more transparent to potential foreign investors