Schuldscheine

A Schuldschein is a loan agreement, not a security, by which the borrower commits himself to the lender to reimburse him a fixed sum on a fixed date against a fixed remuneration.

  • Loan agreements for a mutually agreed period of time;

  • And for which the interest rate may be fixed or floating, or determined by means of a light structure;

  • Denominated in EUR;

  • Governed by German law but the legal documentation complies with those of OLOs (linear bonds), in view of guaranteeing equal treatment of investors in Belgian State loans;

  • Exempted, under German law, from the obligation to mark these loans to market, thereby making this debt instrument advantageous, especially for German investors;

  • May be disposed of, likewise in accordance with German law; they are not listed on the stock market;

  • Placed by a banking intermediary which, generally speaking, also fulfils the role of paying agent; the primary and recognized dealers will probably play an important but not exclusive role in these instruments.

TO WHICH INVESTORS SCHULDSCHEINE ARE AIMED AT?

Schuldscheine are aimed at professional investors and hence generally for significant amounts (millions).