Billions of euros of public funds were invested in systemically important institutions in order to sustain them at the height of the crisis. This was deemed an absolute one-off bail-out and the Financial Stability Board (FSB) introduced a proposal to end ‘too-big-to-fail’. Does this proposal effectively protect the tax payer or are we simply paying the burden in advance?
The effects of the credit crisis on corporate funding options have often been discussed. The general message is that it has become much more difficult for companies to attract bank financing since the start of the crisis in 2008. This is mainly due to worldwide deleveraging by banks, fueled by new regulations such as Basel III. However, these developments have also created an interesting opportunity for European investment grade corporates.
Impact of Basel III on corporate banking relationship
While Basel III may restore the health of the financial markets and the banking industry in the long run, it will also have an impact on the real economy and business in the mean time. The economic impact of Basel III is often mentioned, but seldom analyzed in detail. This article assesses the potential impact of Basel III on companies and outlines some options that corporate treasurers and bankers can explore in order to minimize the effects.
Alternative valuation method in the sustainable energy industry
Zanders has been involved in financing issues and transactions related to sustainable energy for several years now, supporting developers, power companies, and start-ups in a variety of countries.
As part of one of its consultancy projects, Zanders advised a Dutch developer on the valuation of its German wind farms. For this particular client, Zanders calculated the value of the implicit option embedded in the complex financing of wind energy projects.