Public debt markets

Despite our focus on the public debt markets, banks still provide the bulk of corporate Europe s credit needs. Bank loans to commercial and industrial borrowers in Europe total 3,000 billion, compared to 651 billion of public fixed-rate investment grade debt. 

Over the next 20 years, the Itaipu debt would be restructured and refinanced many times as inflation in Brazil and global financial crises altered conditions in major financial markets. By 2006 the foreign debt had been retired completely, and the remaining debt for the construction of Itaipu, equal to some US 20 billion, was internal public debt in Brazil, as shown in Table 92.3. 

Victrex "went public" in 1995, which has helped it to avoid debt to finance its expansions. Since then, the company has shown relatively consistent high rates of sales growth and profitability (approaching a 30% return on sales) it has paid a regularly increasing dividend. This extraordinary record makes Victrex as unique a company as the product it makes and markets. 

Float public stock offerings when the market is high (but never ceding control), and buy back when the market is low. The proceeds of the stock offerings are used to pay down debt, part of which was issued previously to buy back stock. Unlike many financial investors who usually take companies public in order to pocket the proceeds. Huntsman uses this financial technique to strengthen its balance sheet and add to its flow of investment funds from depreciation and retained earnings. 

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