Debt favoured over equity
Deloitte Belgian CFO Survey Q1-2011
All means of financing remain attractive but debt remains in favour. Equity remains less popular as compared to corporate debt and bank borrowing. The attractiveness of bank borrowing has slightly decreased, potentially following the expected increase in prices and more stringent lending conditions going forward.
Consistent with previous findings, more CFOs report it is a good timing to issue (corporate) debt, as opposed to equity.
Although CFOs expect higher price terms and harder lending terms over the next six months, they also expect that bank borrowing will grow over the next twelve months. Consistent with previous results, equity will rise much slower.