The 2023 Corporate Debt and Treasury Report, by Herbert Smith Freehills and the Association of Corporate Treasurers (ACT), found that banks remained the largest single source of corporate debt financing, at 46%.
However, the report also noted that public debt capital markets (DCM) and private-placement financing combined accounts for half of all debt, up from 37% in 2019.
Some of the finance professionals surveyed suggested that the ease of putting bank debt in place continued to be a substantial advantage compared with other debt instruments, while the report’s authors also referenced pre-conditions such as minimum size and credit rating that leave bond issuance beyond the reach of many companies.
All these markets have the ability to offer liquidity to smaller corporates who can find the preconditions of the public markets too onerous
Andrew Menzies, Societe Generale
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