(Bloomberg) -- Groupe SEB is the first French company to sell syndicated Schuldschein debt this year, a sign that foreign borrowers are returning to the niche German market.
SEB, which makes Tefal frying pans and All-Clad cookware, raised €650 million ($700 million) of the note. That’s more than triple the initial projection of €200 million, the company said in a statement.
A total of 37 investors, mainly banks from Asia, Germany and other parts of Europe, invested in the debt sale, which was oversubscribed, said Chief Financial Officer Olivier Casanova. SEB hired BNP Paribas SA, Citigroup Inc., Commerzbank AG, HSBC Holdings Plc and Societe Generale SA to help arrange the financing.
“This market remains one of the important sources of funding for us,” he said. Roughly 80% of the debt was sold with maturities of five years or more, and most of the debt has a floating rate, Casanova added.
French companies have largely disappeared from the Schuldschein market in the wake of the fallout related to a scandal at care-home operator Orpea SA, once a regular Schuldschein issuer. They used to be the largest group of foreign borrowers that sold the notes, a kind of German promissory that has qualities similar to loans and bonds and can have both fixed and floating rates.
“Our successful issue is reopening the market for French names,” Casanova said.
Read More: Borrowers Tiptoe Back to Schuldschein as Foreign Stigma Fades
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