In the Know: Understanding the Schuldscheindarlehen

Welcome to the May edition of In the Know, Baker McKenzie's Leveraged Finance newsletter, which analyses significant trends and salient legal issues for participants in leveraged finance and high-yield markets in Europe and around the globe.

In recent years, the Schuldscheindarlehen (SSD) has gained considerable traction as a preferred financing instrument among both German entities and international investors. While investors have become more discerning — now subscribing only top-tier creditors — the SSD continues to stand out as an attractive option on the periphery of the debt capital markets, offering appealing economic terms.

This edition of "In the Know" aims to provide an overview of the SSD, its main characteristics, the corporate acts required, perfection requirements and tax implications.

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