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Private debt

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  • The UK Treasury’s decision to raise the cost of borrowing for local authorities has caused quite a stir in private placement markets, as players realise institutional investors are prepared to offer debt at more attractive rates than the Public Works Loan Board (PWLB). But the more adventurous local authorities may find capital markets a tougher pitch to play on, writes Silas Brown.
  • The University of Nottingham is looking to sell US private placements, according to market sources, becoming the third UK university to enter the private debt market this year.
  • Australian medical centre operator Sonic Healthcare has raised $550m of US private placements (PPs) across three tranches, as Australian borrowers solidify their position as a key source of growth for the market.
  • Celia Murray has been appointed as head of M&A and corporate finance for the UK at JP Morgan.
  • Capital markets have long been unattractive funding routes for UK local authorities as the Public Works Loan Board — a government body that provides loans to public bodies — has offered lending levels that public and private markets could not compete with. But a recent Treasury announcement may have tipped the scales in PP players' favour.
  • The Bel Group, the French cheese company behind brands Babybel and The Laughing Cow, has become the first company to issue Euro private placement (Euro PP) notes with sustainability-linked margins, following in the footsteps of the loan market, the Schuldschein market and subsequently the bond market.