internal sources external sources where to borrow ? in what form ? capital structure? equity or...
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INTERNATIONAL ASPECTS OF RAISING CAPITAL
What are the main sources of funding for an enterprise?
Internal Sources External Sources
External Sources
Where to borrow ? In what form ? Capital structure? Equity or debt? Choice of currency? Fixed or floating rate debt?
Equity financing
Activity 1
In which countries should equities be issued?
Other sources of funding
Parallel loans between corporations Credit swaps between banks and
corporations Loans from host governments and
development banks Private-sector alternatives World Bank group Regional and National Development
banks
Parallel or back to back loan
The exchange of funds between firms in different countries with the exchange reversed at a later date
What are the advantages & problems of such deals?
Credit swaps
Involves the exchange of currencies between an enterprise and a bank rather than 2 enterprises.
Advantages?
Special financing vehicles
Suppliers’ credit Buyers’ credit International leasing of assets