SAP proves that a lack of credit rating is no handicap to successful bond issuance
The treasurer of German software firm SAP explains how its capital-raising strategy resulted in two euro-denominated bond offerings and a dollar deal.
Investors got a rare chance to add German business software provider SAP to their portfolios during 2010, as the company tapped the bond markets to part-finance its takeover of US rival, Sybase.
SAP is unusual for such a large company (it had a market capitalisation of €40 billion at the end of last year), in that it has no public credit rating, although it does benefit from a strong implicit investment grade rating. But it successfully utilised its brand recognition and credit story to attract
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