.jpg)
1 hour ago
3
Article content
(Bloomberg) — European chemical makers are seizing a brief window created by the Iran conflict to refinance debt, even as the industry’s structural downturn shows little sign of easing, according to Lazard Inc.’s Katja Ksoll.
THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
SUBSCRIBE TO UNLOCK MORE ARTICLES
Subscribe now to read the latest news in your city and across Canada.
- Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.
- Daily content from Financial Times, the world's leading global business publication.
- Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.
- National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.
- Daily puzzles, including the New York Times Crossword.
REGISTER / SIGN IN TO UNLOCK MORE ARTICLES
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account.
- Share your thoughts and join the conversation in the comments.
- Enjoy additional articles per month.
- Get email updates from your favourite authors.
THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.
Create an account or sign in to continue with your reading experience.
- Access articles from across Canada with one account
- Share your thoughts and join the conversation in the comments
- Enjoy additional articles per month
- Get email updates from your favourite authors
Sign In or Create an Account
or
Article content
The supply chain disruptions sparked by the war temporarily lifted sentiment for European producers, which are less exposed to feedstock shortages than their Asian rivals. At the same time, liquidity in credit markets has fueled investor demand for new deals, allowing cash-strapped chemical companies to extend maturities, said Ksoll, who heads Lazard’s debt advisory for Germany, Austria and Switzerland.
Article content
Article content
Article content
“Based on the strong performance and liquid capital market, now is a good time to get deals done,” Ksoll said in an interview.
Article content
By signing up you consent to receive the above newsletter from Postmedia Network Inc.
Article content
The refinancing push comes as Europe’s chemical industry remains under severe financial pressure from years of weak demand, high energy costs and excess global capacity. Those conditions have squeezed cash flows across the sector, leaving many companies focused on preserving liquidity.
Article content
Nouryon, CABB Group GmbH, Lanxess AG and Ineos Group are among companies that recently refinanced debt, according to Bloomberg Intelligence. For firms still struggling with subdued demand, refinancing removes “the biggest headache,” allowing them to focus on operational improvements, Ksoll said.
Article content
The current market environment, however, may prove short-lived. As tensions between Iran and the US ease and the Strait of Hormuz is opening, investors are reassessing how long the temporary boost for European chemical producers can last.
Article content
“The refinancing window now appears to be closing for chemical companies,” said BI credit analyst Timothy Riminton, adding that chemicals are again returning to the bottom of the cycle. “The question is sort of how long does that take?”
Article content
For now, the supply-chain issues are still affecting industrial producers, Germany’s Ifo institute said Tuesday. Nearly 30% of chemical companies in Europe’s biggest economy are experiencing materials shortages, according to Ifo’s latest survey.
Article content
“It will likely take some time before international supply chains return to normal,” said Ifo’s head of surveys Klaus Wohlrabe.
Article content
English (US)