Debitos introduces new trading segment dedicated to Schuldscheine
- Debitos rolls out dedicated support for Schuldscheine transactions on the marketplace.
- The new segment aims to deepen liquidity, standardize sales processes, and stimulate transactions.
- Over 35 Sparkassen savings banks have already registered and begun using the platform.
Frankfurt – September 19, 2023: Debitos, Europe’s leading marketplace for secondary debt sales, has broadened its asset base by introducing a trading segment specifically for Schuldschein transactions. This move aims to enhance liquidity, transparency, and transaction volume for this unique German financial instrument.
A Dedicated Trading Segment for Schuldscheine
Debitos has rolled out a specialized trading segment to facilitate transactions between Schuldscheine buyers and sellers. Over 35 Sparkassen, German savings banks, have registered and begun selling Schuldscheine on the platform within the last 12 months.
The first Schuldscheine transactions went already live in the general trading segment of Corporate Loans . Positive feedback from the market has driven the decision to introduce an additional dedicated trading segment for these kind of loans. Deals mainly involve borrowers from the textile, automotive, and construction industries, with sizes ranging from €1 to €5 million.
Schuldschein: A Brief Overview
The Schuldschein market has been experiencing significant growth, particularly in the past few years. It is estimated that the market is currently valued at around €30 billion per year, with annual transactions increasing by approximately 10% year over year. This robust growth demonstrates the increasing demand for this asset class, further reinforcing the importance of having a dedicated trading platform.
Schuldschein loans are a hybrid type of syndicated corporate loan, designed by German lenders for creditworthy local SME borrowers and governed by German law. These loans blend elements of syndicated loans, privately placed bonds, and loan participation notes. Typically, Schuldscheine are unsecured and have medium to long-term maturities.
For borrowers, Schuldschein loans provide cost savings, investor diversification, flexibility, ability to improve debt maturity profile and low minimum issue amount. Schuldschein can be as small as €20 million, a significant appeal to SMEs, and also require no borrower prospectus, stock exchange listing or external credit rating. Among the benefits for credit investors, Schuldscheine loans typically offer higher yields than corporate bonds and syndicated loans, due to relatively lower investor liquidity, while providing exposure to smaller investment-grade companies.
Marketplace to enhance liquidity
“Debitos is well-positioned to digitize the burgeoning secondary market for Schuldscheine, which is growing not just in Germany but across Europe,” says Timur Peters, founder and CEO of Debitos.
He adds, “By supporting Schuldscheine, we aim to boost market liquidity and institutionalise standardized sales processes. Our platform facilitates quick and efficient connections between buyers and sellers. This is especially beneficial for non-German Schuldschein investors looking to exit positions under certain circumstances. They now have a platform that ensures they secure the best possible price for their holdings.”
Peters also noted that the gap between market offers and seller expectations has narrowed in 2023, largely due to the increased demand for Schuldschein loans as government financial support phases out post-pandemic.
Debitos is the leading loan transaction platform in Europe that enables banks, funds and companies to sell their credit exposures on the market through its open and transparent auction-based online transaction platform.
The platform leverages on the digitalisation of the entire sale process and can reduce the expected disposal timing to 3-8 weeks compared to 3-6 months of the traditional process. Debitos was founded in Frankfurt in 2010 and has since successfully transacted more than 900,000 loans in 16 countries. By now, more than 1,900 investors from all over Europe have registered with Debitos.