Task definition

  • Conclusion of long-term interest rate hedges
  • Accounting requirements in accordance with IFRS 9 (hedge accounting)
  • Integration into existing intercreditor agreement and collateral pool

Industry / Function / Environment/ Expert

  • European market leader in the leasing of rail freight and tank wagons, rail and tank container logistics
  • Head of Financing & Treasury
  • Björn Gresens

Situation

  • Low, long-term interest rate level
  • Consideration of IFRS 9 requirements for hedge accounting
  • No matching of financing and interest rate hedges
  • High leverage, no external rating

Measures to be taken

  • Planning of long-term financing requirements
  • Determination of interest rate hedging requirements (maturities and volumes)
  • Creation of a new hedging strategy
  • Coordination with the auditor
  • Examination of available lines and interest of banks from the financing consortium
  • Appointment of a hedge coordinator for the placement
  • Conducting a hedge auction among the banks

  • 2-fold oversubscription and placement of a volume of over EUR 1 billion
  • Cost reduction through auction process
  • Conclusion of interest rate hedges with various maturity bands from 3 to 20 years
  • Integration into existing intercreditor agreement and collateralization of Group financing
  • Implementation of a new hedging strategy
  • Hedge accounting taking into account hedging relationships Ι

  • European market leader in the rental of rail freight and tank wagons, rail and tank container logistics
  • Customer portfolio: Railroads, rail logistics companies, chemicals and petrochemicals
  • Product portfolio: Hire of tank and tank wagons, intermodal wagons, bulk goods wagons, rail logistics, tank container logistics
Bankfachwirt Björn Gresens

Partner

 +49 40 8000 845 92 gresens@fup-ag.com
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