CASE STUDY

Receivables Finance

Giant German chemicals distributor raises €300 million

BRENNTAG - Mülheim an der Ruhr, Germany
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Providing the key link between chemical manufacturers and the users, Brenntag is the market leader in global chemicals distribution. It operates in over 490 locations in 72 countries, employing over 13,500 people and had sales of €10 billion in 2014.

When planning a €300 million trade receivables securitisation, Brenntag initially engaged Demica to collect and analyse historical data of the receivables of operating companies in a range of locations and to prepare a structure note. Impressed with our expertise, Brenntag then appointed us to advise them on the programme and supporting their dealings with the potential funding banks, legal advisors and others involved in the financing programme.

“DEMICA’s expertise and technology platform have consistently proven themselves over 10 years. We would not have been able to implement or manage the programme without them.”
Thomas Langer
— Vice President Corporate Finance & Investor Relations, Brenntag

Involving 17 Brenntag subsidiaries across Europe and the US, the multi- jurisdictional programme required complex receivables tracking and reporting which Demica has delivered using its sophisticated technology platform. This enabled Brenntag efficiently to meet its servicer reporting obligations to its bank syndicate. When a new bank was brought into the programme the data quality was also a key success factor for the process.

€300m
Size of facility
11 years
Length of relationship
17
Number of subsidiaries