Back-to-back financing

In back-to-back finan­cing, loans (strings) are gran­ted at compa­ra­ble condi­ti­ons over seve­ral stages, e.g. by group compa­nies. For exam­ple, the parent company issues a loan to its subsi­diary (for exam­ple, to finance an acqui­si­tion) and raises the funds requi­red for this purpose as a loan on simi­lar terms from its share­hol­ders and/or on the capi­tal market.