WHY LUXEMBOURG?
- Centrally located in the EU and access to a large talent pool of +11 million inhabitants.
- Luxembourg’s political, economic and fiscal stability.
- Investors who set up their business HQ in Luxembourg find a strong and reliable partner for international growth with multijurisdictional expertise and a long track-record in financial innovation.
- Bespoke toolbox of investment and financial products tailored to the needs of all types of corporate financing.
- A comprehensive service hub covering every facet of core cash activities, treasury, finance and accounting.
- A solid capital markets infrastructure, which includes the leading global venue for international bond listing and green bonds, the Luxembourg Stock Exchange (LuxSE), and Clearstream, the international central securities depositary.
Consistently rated AAA by all three major credit-rating agencies.
GDP annual growth rate in Luxembourg averaged 3.6% from 1996 until 2019.
2nd financial centre in the EU and 6th in sustainability.
Banks’ total balance sheet: EUR 851 billion.
Solvency ratio: 22.7% (EU minimum is 8%).
A WIDE RANGE OF CORPORATE FINANCE ACTIVITIES
Now, more than ever, businesses operate in a global and rapidly changing environment. Corporates need access to professionals who can evaluate the company’s financial needs, raise the appropriate type of capital and advise on the optimal source of funding and capital structure.
In order to meet their international clients’ needs, major international banking groups from Europe, North America, Asia and Latin America have established a base in Luxembourg. They offer the full scope of corporate finance services, typically using a centre of excellence or team of international experts in Luxembourg to coordinate with global banking partners.
In Luxembourg, banks and financial service providers match the international DNA of their clients by offering pan-European products and services that facilitate foreign trade and investment. They work together on a regular basis, resulting in efficient interaction. Service providers in Luxembourg can offer complete end-to-end solutions to companies or can blend seamlessly into an international service-chain.
CLIENTS
Financial service providers in Luxembourg serve the needs of a wide range of clients:
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Corporates
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Financial institutions
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Real estate
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Professional intermediaries
In addition to eurobonds and international loans (bilateral and syndicated), financing of all types is available, including working capital lines, acquisition finance, asset finance, project finance and green loans, as well as factoring, receivable finance, fiduciary finance, leasing, supply chain finance and capital markets transactions.
When financing a major investment or implementing large international projects, it can be advantageous to use a tailored structure. In this context, a wide range of special purpose vehicles can be used. Moreover, some industrial groups, such as Danieli and John Deere, have acquired a banking licence to operate their international financing activities out of Luxembourg.
From listing and trading, to clearing and settlement, Luxembourg offers a solid capital markets environment within a highly developed market infrastructure. The Luxembourg Stock Exchange (LuxSE) is a global specialist in the listing of international securities and is well known for its fast, transparent and customer-focused listing process. For more than fifty years the Exchange has helped companies, institutions and governments around the globe access international capital markets.
Furthermore, by listing new products such as green bonds, dim sum bonds and sukuk (Islamic bonds), LuxSE has actively contributed to innovation in the financial marketplace.
1st
for international bond listing in Europe
2,500+
isssuers
10,400+
new listing in 2019
World's first and only Green Exchange
117
sovereigns
60+
Listing in 60+ currencies
37,000+
securities listed
5,700+
share classes of UCIs listed
100+
jurisdictions
A FINANCIAL ECOSYSTEM HONED TO
CORPORATE FINANCE FOR INTERNATIONAL BUSINESSES
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FINANCING
Since the development of the eurobond market in the 1960s, Luxembourg has established itself as an international hub for bilateral and syndicated loans in the eurozone and beyond.
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TREASURY SERVICES
Cash management solutions need to be specifically developed to meet the challenges treasury owners face today.
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TAX ENVIRONMENT FOR CORPORATE FINANCE
Today, for corporate treasury practitioners, especially those working in multinational organisations, ensuring tax compliance while achieving tax efficiency has become a major responsibility.
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