In Conversation With Etienne Oberthur, Senior Advisor, Issuers
Issuers are increasingly addressing the pressing need for fintech adoption to enhance both systems and communication with between issuer and banker. Today we chat with industry expert and seasoned Issuer Etienne Oberthur to explore the pain points faced where fintech solutions could really add significant value.
Hi Etienne thank you for your time. To kick this off, could you give us some info about your background?
“Thank you for inviting me. I have more than 19 years of experience as Funding Officer in various entities mainly in the French public sector. I have held several positions as Head of Funding and Treasury amongst which at Suez and previously, at Société du Grand Paris (SGP) where I established the financing team and implemented the first 100% Green EMTN Program. Previously, I spent 13 years successively at RFF then SNCF Réseau as a market operator then Head of Treasury Operations.”
Being on the issuer side all these years, what would be the top two or three challenges you face?
“The challenges I’ve had to face have been many, and at the same time unique to each issuer. Obviously, the primary challenge is to obtain financing in the best possible conditions at all times. The integration of new issues such as ESG has also been a challenge in recent years. But from the different issuer profiles I’ve come to know, there’s one issue that comes up quite frequently: investor relations.
Why? Because this is an area that is often ignored or neglected, even though it is crucial.
We all know that for each issuer a new bond is an important event on their annual calendar, how much work goes into preparing for a new deal?
“While market conditions and the price level offered to investors are crucial factors, well-considered distribution demands in-depth work on understanding the investor base. Knowing who has already bought, who could buy the debt, and also having a knowledge of investors’ motivations based on recent meetings, are key elements.
The question for issuers working with their bankers is how best to access this live market and investor information. A new bond issue is one stage in a long process, that of financing, but it is also the result of upstream work that makes it possible.
This upstream work is more discreet and less visible than the issue itself. However, it is just as important, as it largely determines the success of the bond issue.”
Moving forward, how do you see technology improving your partnership with the banks?
“Technology is everywhere in our world and is a challenge for many of us. But it’s a great opportunity too for more efficiency and accuracy in particular – it will change our work processes, that’s for sure. Opposing it seems pointless to me; on the contrary, we need to make the most of it.
My interest in using DealPro is to eliminate the usage of spreadsheets while leveraging all the data we share with the banks. Technology will improve processes by making them more standard, more accurate and more current, and therefore faster and more resilient, so I’m looking to improve my relationship with my bankers, whether it’s the DCM, the syndicate or the seller.
Having said that, the financing business will always retain a human component based on trust and human relationships. Our relationships with our bankers and others are critical – communication is essential. This is how we achieve the right strategy.
Finding this balance between innovation and established processes doesn’t happen overnight, but as we see new tech developments such as DealPro used across banking, issuers also need to embrace this new tech revolution.”
Etienne many thanks for your time today.
