The capital market has a simple task of bringing together entities seeking capital with entities lending capital. It is not only companies who seek capital, but governments and other institutions too. The motivation for most institutional capital lenders is the prospect of multiplying their money through interest. LBBW acts as an agent between the two parties. It has built up a first-rate network of investors, not only in Germany but far and wide.
LBBW assumes an intermediary role when the amounts of money involved are too large for a traditional credit facility – or if more attractive conditions are possible through the capital market. This is not the only advantage of capital market finance for companies: Investors don't want to get involved in the operational side, and the borrowed amounts don't have to be paid back until years down the line.
However, the processes involved are more complex than for traditional credit facilities and mean you having to disclose your company's key business figures to potential investors. Fortunately, investors and agents are subject to strict confidentiality requirements, and unavoidable ratings are often designated "private ratings" – accessible to an exclusive circle of people only.