Ann: Boardroom Radio Broadcast - Mr Paul Burton, page-32

A large part of the capital expenditure can be structured under a Lease Purchase agreement with KFW providing the finance. KFW will raise capital by auctioning German Bunds in the primary market, these securities can be traded in the secondary market. Bunds are highly liquid debt securities and they are accepted by the European Central Bank as collateral. A Lease Purchase is just one of the strategic finance options available to minimise dilution. Ultimately the financing strategy needs to weigh up the cost of finance vs. SH dilution, and to find the optimal balance maximising SH value and reducing the risks for the financiers involved.