110 likes | 633 Views
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.
E N D
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