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 dealers will probably play an important but not exclusive role in these instruments.


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