Deal highlights: leading Australia to North American markets with Transurban Group
August 2, 2019Deal highlights: leading Australia to North American markets with Transurban Group
Maeve McLaughlin, Director and Head, Global Private Placements, and Paul McKeown, Managing Director and Head, Debt Capital Markets, U.S., discuss private placements as a compelling source of capital for issuers around the world, and the benefit of Scotiabank’s global network to facilitate cross-currency transactions.
The Private Placement market and the role of a global partner
Private placements continue to be a compelling source of capital for issuers around the world. In 2018, despite substantial capital market volatility and economic uncertainty, U.S. private placement issuance volume exceeded 2017’s record total with US$101 billion equivalent in issuance.1 Even in times of volatility, the private placement market benefits from its well-earned reputation for stability, consistency and being a “market of constant resort.” Furthermore, private placements are attractive due to their inherent flexibility and ability to be customized according to a number of criteria, such as tenor, volume, currencies and delayed drawdowns.
Finding the right banking partner to lead and advise on a private placement issuance is one of the more overlooked aspects of the capital raising process. The quality of a given bank’s services, plus its areas of expertise and geographic reach, are of increasing importance as the private placement market continues to grow. In this discussion, we will first examine the advantages of using private placements for raising capital. Then we will turn our attention to the importance of using a banking partner with a broad product offering and a truly global network of resources.
The customization advantages of private placements
While there are many reasons why an issuer may want to raise capital through a private placement, rather than an issuance through the public debt markets or other means, the commonly cited benefits of private placements have to do with their inherent flexibility. The private placement market allows an issuer to work with its banking partners to customize an offering along several parameters, including:
The importance of global expertise
If issuers are seeking to benefit from the flexibility and customization of the private placement market, then quality of advice and the breadth of resources working on their behalf are critical to a successful transaction. A banking partner with global reach and sector expertise is of particular importance in an environment of increasingly numerous and complex transactions. An issuer looking at the private placement market will likely want to appoint a bank with the following characteristics:
Partnering with Canada’s international bank
Since its founding, Scotiabank has committed to maintaining its position as a truly global partner for its clients worldwide. The Bank has been a pioneer in cross-border transactions, and utilizes the resources of its on-the-ground presence. The scope of Scotiabank’s geographic reach and the breadth of product offerings and expertise have made it a leader in holistic debt capital markets solutions.
For more information on Scotiabank’s private placements solutions, please contact:
Managing Director and Head, Debt Capital Markets, U.S.
Director and Head, Global Private Placements
1. USPP Year End Wrap-Up, 2018, Scotiabank/Private Placement Monitor.