CASE STUDY

Trade Receivables Securitisation

Global Facilities Service Provider Raises €350m

ISS - Copenhagen, Denmark
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One of the world’s leading facilities servicing companies, ISS has operations in over 75 countries across five continents, employs more than 510,000 people. When ISS engaged Demica, it was owned by private equity funds advised by EQT Partners and Goldman Sachs Capital Partners and sought to lower its costs and accelerate growth.

A core part of this strategy was to introduce receivables finance into its financing structure to reduce the Weighted Average Cost of Debt. The planned €350 million trade receivables securitisation programme required selling receivables from subsidiaries in 10 major European countries. Challenges with this goal included structuring the transaction outside of the complex existing security package, managing the syndicate of banks, and implementing the sophisticated reporting required for a highly geared group using  multiple ERP systems. 

“Demica helped us to capitalise on our trade debt assets to gain access to a relatively low cost, low volatile source of finance, with greatly advantageous rewards for ISS.”
Barbara Plucnar Jensen
— Senior Vice President, Head of Group Treasury, ISS

After the structuring was complete, Demica's team guided ISS staff through the key steps while we automated the processes that underpinned ISS’s role in the transaction. Demica’s platform simplified the administration of the very complex programme as while ensuring that the process was strictly compliant. Demica’s analysis of the order-to-cash processes highlighted opportunities that ISS used to streamline data flows and improve financial transparency across the group.

The net result of the programme was that ISS gained access to the low cost finance it sought – funds that played a key part in the future growth of the group and culminated in its successful IPO on the Copenhagen Stock Exchange and the exit sought by its private equity owners.

€350m
Facility size
5 years
Length of relationship
10
Number of subsidiaries