YOUR STRENGTH
GREEN AND TRANSITION FINANCE
We take the corporate perspective on green finance and transition finance as well as on other corporate finance matters.
For the following few introductory thoughts on green finance let us start by saying: It is all about increasing and ensuring sustainability on the company´s side.
The green orientation and focus of our and the company clients` ambitions is the basis. The subsequent goal can then be summarized as, help clients reduce their emissions in a proactive way and pursue their transition towards green economy conditions. This has to be based on the elaborations of their current status and paralleled by consideration of regulatory requirements.
Examples of other interesting intermediates on the path of the green transition process, which we also would like to mention here (except for transition plans and their analysis), are sectoral alignment plans and sectoral emission targets. These are of relevance with respect to status and path, also beyond individual clients´ positions and interests.
It is furthermore our personal wish to note at this point that we have been green at heart for a very long time already – with a deeply founded belief that we as a corporate identity and as individuals thereof have to contribute to a greener world not only with words. For this reason we have been engaged in green innovation from a technological route for years already, and have contributed to this effort quite a lot of work, life time and fortune. What we would like to stress by saying so is that we really know the company side and, of course, also do have an opinion on what the financing system for green technology and innovations currently looks like and what it, from our point of view, still lacks.
FINANCING TRANSFORMATION: THE SYSTEMIC PERSPECTIVE
From a financial sector perspective and from an economy-wide perspective transformation going on in the real economy has to be financed. To the questions that arise in this context and that have to be answered the sooner the better belong the following: How will these financing needs be solved? Which role will banks play in funding the sustainability, digital, and post-pandemic transformation of the economy? Which risks will emerge for the financiers of innovation (breakthrough – incremental)? How will investment horizons be affected (risks of longer-term engagements)? Which financing instruments and which sort of capital will be suitable to meet the demands?
Joachim Wuermeling, at the time of being a Member of the Executive Board of Deutsche Bundesbank, in a 2021 speech at the Bundesbank Symposium on “Banking supervision in dialogue” turned the spotlight on these issues. He paralleled the pointing out of the challenges and problems by estimates of the tremendous amounts talked about, and paid tribute to the far-reaching consequences of the transformation processes going on as well. Moreover, he emphasized the necessity to think outside the box and leave the comfort zones when approaching these issues.
Concluding: The need to overcome the hurdles of financing the green (and other) transition holds for both sides: the corporate and the systemic.
CORPORATE FINANCE
We engage in a broad spectrum of corporate finance topics, ranging from corporate capital structure issues to quantitative advice on the structuring of project and investment financing. Our perspective is an analytical one, and it is both yours and that of your counterpart – in order to work out the ideal solution for you.
The overall aim is to enable you to realize your plans and undertakings – at the lowest possible cost, with the lowest possible financial risk and while maintaining the greatest possible independence and maximum freedom of action for your company.
Consulting services are provided in particular to solve the following tasks:
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OUR ADVISORY FOCUS FOR CORPORATE FINANCE TOPICS |
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Capital structure evaluation and development of suggestions for improvement |
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Analytical structuring advice for investment and project financing |
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Setting up and optimizing company and project-related risk management |
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Expertise: Our expertise stems from corporate advisory, economic policy counseling, and startup work – such as in the fields of financing, risk modeling, risk management, budget and industrial policy analysis, banking research and economic research. Likewise, it is based on the continued dealing with academic work on financing, risk management, and regulatory issues – i. a. concerning ratings and rating models, credit risk modeling, analytical company valuation, analysis of bankruptcy triggers, credit spreads, capital structure effects et al.
