Promissory notes are in vogue: More and more companies such as Porsche, HeidelbergCement and K + S issued these loans in ever larger volumes.

There are still fixed-income securities issued by the European Central Bank (ECB) cannot be bought. These include the promissory note, which has completed its niche in recent years and is now also appreciated by large companies as a financing tool. The promissory note is like a corporate bond but is placed in a selected group of investors. This eliminates the documentation requirements that are required for listed corporate bonds.

The list of issuers in the first half of 2016 includes familiar names: The sports car manufacturer Porsche went in March a promissory note over 1.1 billion euros. The building materials manufacturer Holcim (1.0 billion euros in May) and Heidelberg Cement (EUR 0.6 billion in January) are among them, as is the seed and fertilizer producer K + S (EUR 0.6 billion in May). The second largest promissory note ever went in March the food discounter Hofer. The subsidiary of Aldi Süd Group took about 1.7 billion euros. The recording issue comes from the automotive supplier ZF Friedrichshafen, who had placed a promissory note over 2.3 billion euros last year.

Currently, there are notes about 77.27 billion euros in circulation. As is evident from a report presented on Wednesday Market Report, which specializes in corporate finance advisory firm CAPMARCON, the volume has increased by 12 percent year to date. In the first half notes about 13.26 billion euros were placed in 53 issues. A year earlier, also 53 new bonds were counted, which, however, totaled only 9.11 billion euros.

According to CAPMARCON the promissory note market for large companies is increasingly becoming the alternative of bond financings and syndicated loans of several banks. The promissory note has both features still suffer the most traded against the corporate bond. So to separate them before the end of the term is much more difficult. A bond can, however, be easily sold on the market.

CAPMARCON holds the promissory note still interesting for small, medium enterprises. Because it would always address the market that there aufnähmen amounts to 30 million euros. Especially for medium-sized companies of the promissory note is an opportunity to tap new investors beyond the traditional banks. In addition, they move on the promissory note in their financing the capital market much closer. According to CAPMARCON and ranged in emissions in the first half of 25 million to 1.7 billion euros. the CAPMARCON professionals “The depth of the German promissory note market can be as much as small very large issuances to” consider the market development as well healthy.

Yet IOUs not be limited to German issuers. 73.5 percent of the issue size of these come in the first half. From France 7.5 percent, the Netherlands 7.3 percent and 6.5 percent from Switzerland came. Among the classic investors in promissory notes include banks and insurers. In recent years it has also strengthened Asian funds for interested.