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ICF - Finance Instruments Primarily for Large Enterprises

Structured finance

More about structured finance.

Acquisition and leverage finance

Growth can either be achieved through a company’s own earning power or through the acquisition (takeover) of other companies or parts of other companies.

Acquisition financing is the provision of financing for the purchase price (debt financing) either to the purchaser directly, to a company that has been founded for that purpose (a so-called SPV, special purpose vehicle) or to the company to be acquired (target), especially if its debt is refinanced as part of the acquisition.

This financing alters the financial standing of the new corporate group and requires a corresponding analysis, regardless of whether the acquisition is primarily financed by the target’s cash flow alone, in part by the purchaser or if it is financed on the purchaser's balance sheet.

A series of complex legal issues (such as fiscal, corporate and takeover laws) must be taken into account in the preparation of an optimised financing solution. Particulary, the risks identified in the analysis must be covered entirely, and the conditions necessary for success (such as tax optimisation coupled with a bankable financing structure) must be provided.

Key figures that form the basis of the financing structure (for example the applicable interest margin, the required collateral, etc.) are identified on the basis of corporate planning scenarios prepared together by the customer and Bank Austria, and are then agreed in so-called covenants. This provides the customer and the bank with a comprehensible information system that serves to improve transparency.

Target group

Corporates with financing needs in excess of EUR 10 million that expect appropriate advisory services corresponding to the higher opportunity and risk level associated with such a transaction. Bank Austria offers solutions for acquisition and leverage finance ranging from bilateral loans all the way to the arrangement of large-volume, internationally syndicated loans on the basis of its experience, underwriting capacity and its proven placement strength on the capital market.


Bank Austria develops individual solution models on the basis of your precise needs.
These solutions come along with the optimal use of our complete range of corporate finance products (especially CA IB advisory services and Private Equity products such as Mezzanine Capital).
Opportunities for more cost-attractive refinancing (for example through OeKB) are identified.
The granting of a mandate to Bank Austria for the arrangement of a large credit volume ensures successful structuring and underwriting and subsequent syndication on the national and international credit market.
This means that our customers have not only a reliable partner for the structuring and realisation of demanding transactions, but also for all follow-up services.


A successful acquisition financing requires an open dialogue between your company and Bank Austria to analyse all relevant requirements and parameters in detail.

This may also require the know-how of external consultants, legal experts, etc. for the due diligence of the target. The concluding discussion of the opportunity and risk profile of the financing and the financing alternatives recommended by Bank Austria on the basis of this (including the standard international practices that apply especially to large volume transactions) form the basis for a custom-tailored financing.

The successful realisation of an acquisition can only be guaranteed when you rely on professionals who are experienced in the assessment, structuring and realisation of such financings. Success or failure is also decided by a balanced financing structure.

Profit from our experience: Bank Austria has an experienced team that has demonstrated its know-how in a large number of successful transactions. The following excerpt from our list of concluded deals documents this.

Project finance

You intend to implement a precisely defined business venture (project), for example as part of a growth strategy. This might be the construction and operation of a power plant, a motorway toll system or a GSM network. It is important that such a project be based on a proven technology.

Target group

Project financing is especially suited to corporate customers (also called initiators or sponsors) that are pursuing a national or international expansion strategy while at the same time minimising their risks. This product is also suited to joint ventures with multiple sponsors. The financing needs should be at least 10 million Euro.


As the initiator or sponsor of the project, you establish a project company (special purpose company) and provide the necessary equity capital. The capital stock of this company must be approximately one third of the project volume.

The amount of debt capital that can be serviced by the company is based on the economic efficiency analysis to be submitted by the company in the form of a financial model (with budgeted income statement, balance sheet and cash flow statement), which is used to determine the expected operating cash flow. This calculation presents different scenarios (sensitivity analyses) in order to take potential developments of important influence factors into account. The cash flow generated by the project is the primary source of funding to service the financing.

Bank Austria assesses potential risks of the project together with external consultants as part of a so-called "due diligence" and tries to eliminate these risks, if possible, or allocates them to the respective project partner that can best assess and deal with the risk. This means that our experts work together with you to design a custom-tailored financing solution that minimises the risk for all involved. This risk-sharing approach offers investors a significant advantage in that they are not required to bear all risks associated with the project alone, as would be the case when financing the project on the sponsor’s own balance sheet (through a classic bank loan). We also accompany you for the entire duration of the project, and can convert the project financing into a traditional corporate financing in the event that the project company develops according to plan.

The results of these analyses also serve to identify operating performance indicators, which are agreed in the credit agreement in the form of covenants, and which serve as the basis for pricing and the necessary collateral.

Financing risk

The borrower in a project financing is the respective project company. As the sponsor, you contribute to the success of the project through your know-how, your experience in the sector and through the equity capital invested in the project company. Under so-called non-recourse financing (which stipulates no recourse to the sponsor), you are not subject to any liability in the form of a loan guarantee or other obligations. Variants with limited rights of recourse are often agreed, whereby specific obligations are to be fulfilled under exactly defined circumstances.

Success criteria

A successful project financing depends greatly on the willingness of all involved parties to work together in a partnership. The analysis procedure for project financing is more extensive than for classic corporate finance, and requires an open dialogue between you and our experts. These analyses serve as the basis for a risk profile, and the risk profile in turn as the basis for the design of an optimal, custom-tailored financing solution.

The risk profile is based primarily on your financial standing, your experience in the sector and the amount of equity capital paid into the project company.

Further factors for the success of the project are a solid outlook and the economic efficiency of the project, which is analysed by Bank Austria with the assistance of external experts and which is a source of important information for you as well.

Bank Austria is here to support you with a team of experts with a track record of a large number of successful transactions. We guarantee in advance the successful structuring and secured underwriting of large loan volumes with subsequent syndication on the national and international credit market.

Corporate bonds

The issuance of a bond (debt instrument) allows a corporate to raise long-term capital on a fixed interest rate (usually paid anually) or variable interest rate basis (usually calculated and paid on a half-yearly or quarterly basis). The principal is repaid at the end of the term. In addition to costs that are in line with market conditions (no government loan tax fee), a significant advantage with this financing form is that the placement of a bond expands the financial base of a company without making use of credit lines with the company's banks, thereby increasing flexibility in covering short-term liquidity needs. The issue of a bond also brings with it a certain level of publicity, which can be utilised for a product placement.

Target group

Corporates with balance sheet totals exceeding EUR 200 million. The company should be well known or should have a marketable “investment story”.


As the leading issuing bank in Austria, Bank Austria offers you professional advice and processing of bond issues. The optimal product is developed on the basis of your financing needs and the intended use of the bond proceeds. An team of experts completes all necessary analyses, defines the terms and contract provisions, and handles the sale of the bond issue under the coordination of an experienced Bank Austria bond issuance expert. Our connection with HypoVereinsbank puts the placement strength of the third largest bank in Europe at your disposal.


In addition to financing needs (nominal issue volume) of at least EUR 50 million, the marketability of a bond on the capital market depends above all on the issuer’s willingness to undergo a due diligence process. The economic and legal situation of the issuer is assessed and a financial standing assessment of the firm, at least in the form of a corporate analysis, is completed.

Equity offerings / IPO

An initial public offering (IPO) is referred to when a stock company offers its shares for the first time to the market, usually in connection with the admission of its shares to listing on a stock exchange. The preparation for an IPO includes internal and external aspects such as preparing for appropriate financial reporting, designing corporate organization and by laws, developing the investment story, valuation, corporate communication as well as the attending to the admission to listing procedure, the preparation of the prospectus, selection of the underwriting syndicate and the marketing for the offering.

Target group

There are no fixed requirements relating to size for companies planning to do an IPO; this as well as the respective business sector the company is active in are judged by the capital markets depending on the current economic environment and cycle. Size and development stage of a company are important criteria insofar as private or venture capital might be more suitable for financing companies in an early stage.


Services offered by Bank Austria include advisory services as well as the structuring and execution of equity offerings on the capital markets. In addition, Bank Austria coordinates the external consultants (such as auditors, lawyers etc.) and the internal functions (Equity Research, Sales, Settlement) involved in an IPO. We also provide our services to customers in case of capital increases, the sale of shares by existing shareholders (secondary offerings), block trades or the admission to listing without any shares being placed, and provide competent advice in all stock exchange and capital market related matters.


The company should have a corporate history of at least three years and post profits.
The IPO should serve for financing the expansion of the company`s business, an acquisition or a similar project (no sale of existing shares only).
In order to provide sufficient liquidity in the shares on the secondary market, free float after the IPO should not be less than 25%, and the volume of the placement should not be less than EUR 30 - 40 millions.