Discover SG CIB
Societe Generale Corporate Investment Banking (SG CIB) is part of the Global Banking & Investor Solutions pole of Societe Generale group (GBIS) that encompasses Corporate & Investment Banking, Private Banking, Asset Management and Investor Services (18,000 employees in 53 countries).
As a Corporate and Investment bank, we support our core clients in their long-term and strategic goals across four essential functions: financing, advisory services, risk management and investment solutions. Learn more about our offering.
In these areas, our teams both offer issuers -corporates, financial institutions, the public sector -a broad access to markets and investors, and provide investors- institutionals and retail such as funds, asset managers, private banks, insurance companies and family offices-, smart solutions and access to investment opportunities.
- Comprehensive advisory services in strategy covering M&A, strategic equity transactions, capital structure, and in capital raising covering IPO, equity market access (equity solutions, capital increases), thanks to Coverage and Investment Banking teams (senior bankers, customer relationship managers, Corporate Finance analyst, M&A analysts, KYC analysts…).
- Solutions for capital raising on debt capital markets (bond issues), capital & debt structure, acquisition finance and LBO; structured finance based on leading expertise and sectorial knowledge in export finance, infrastructure & asset-based, energy and natural resources, media & telecom, thanks to Global Finance teams (originators, syndication specialists, sales, structured finance specialists…).
- Solutions for hedging services on interest rate and foreign exchange, inflation, thanks to a close collaboration between the Global Finance and Global Markets’ teams (pricers, sales…).
- Suitable investment opportunities and reliable solutions in terms of risk management thanks to an integrated platform offering global market access (equities, bonds, credit, foreign exchange, commodities and derivatives), advisory services, financial planning, top quality execution, clearing and prime brokerage services, and cross-searching the various asset classes with our Global Markets’ teams (traders, sales, brokers, pricers, financial analysts, quantitative analysts, trading analysts, market-makers, marketing specialists….).
Over the years, worldwide, we have provided direct funding for projects that have helped to create thousands of jobs and improve services for individuals and businesses alike.
We rely on our differentiating factors: our worldwide leading expertise in Equity Derivatives, Natural Resources Financing, Euro Fixed Income, Cross-Asset solutions, Execution, Clearing & Prime Brokerage services; our powerful engineering expertise; and the quality of our product franchise.
Whether it is financing motorways, supporting international exports, helping to hedge clients’ foreign exchange risks, advising on capital structure, looking at strategic acquisitions, tapping into the markets, or drawing up and implementing investment strategies, we support our clients in a wide range of sectors across the globe.
Understanding the role of a corporate & investment bank in financing the economy
Understanding the role of a corporate and investment bank
On a large empty site with a sign board presenting the project. The two people are the originators of the project, from two companies that have joined forces to see it through...
INTER-TITLE (on the sign board): "TWO COMPANIES, ONE SHARED PROJECT"
Company 1 – Great, we're almost there... work will begin soon!
Company 2 – Well, not just yet. We've still got to finalise the financing. But it's true that we've made fast progress since the start of this joint-venture.
Company 1 – A renewable energy specialist joining forces with a construction materials expert to build a new generation of wind turbines seemed simple enough… Luckily, we had the advice of our corporate and investment bank. It means we've started with really solid foundations.
Company 2 – For sure, but it wasn't the obvious course of action !
Narration - Yes, as part of its Strategic Advisory business, the CIB advised its client, which had strong expertise in renewable energy and a limited borrowing capacity, to join forces with another company, complementary in both areas.
Rather than a simple partnership, the bank recommended the creation of a common subsidiary: a joint-venture. With a clear vision of the responsibilities and benefits for both parties, it made working together easier, more sustainable and more transparent.
A meeting room. Three characters: a senior banker and the two companies
Bank – The bank agrees to lend you a considerable portion of your capital needs. For the rest, we will look for investors who are seeking investments in the sector.
Company 1 – But will we have to sign a contract with each investor? That could take ages!
Bank - No, we'll issue only one contract – a bond – on the capital markets. It will have unique characteristics: a rate, a maturity date... just like a traditional loan. Various investors can then lend you capital by simply buying this bond. Company 2 – But how do we calculate the bond's rate? What interest will we have to pay on the loans?
Narration - Financing is the Corporate and Investment Bank's second core business. It can of course lend capital directly; but also organises indirect financing by providing its client with access to capital markets where funding is available through institutional investors.
In the present case, institutional investors will be able to take part in the financing by buying a bond initially issued by the bank on behalf of its client: the "issuer".
The bank will advise its client (the issuer) on the bond's rate based on a number of parameters: the financial solidity of the issuer, current market interest rates, the appeal for investors, etc.
Same setting, same characters
Bank – There’s just one thing we need to clear up…
Company 1 – What's that?
Bank – You'll need a lot of raw materials, like steel for example, to build your wind turbines. And as you know, the price of steel changes all the time. It's very volatile...
Company 2 – Yes, I know. The contracts signed with the steel supplier stipulate that prices may vary. It's a big risk. So what can we do about it?
Bank – We have hedging solutions which can allow us to fix the price of steel today that you'll pay on delivery, even if this delivery is in a few years' time.
Company 1 – That's exactly what we need! It's a bit like fixed exchange rates, right?
Narration - Exactly. It's the third group of services that the bank offers its clients, whether they’re large companies or financial institutions: helping them with their financial risk management.
Price variations of raw materials, foreign currency exchange rates, interest rates and many other parameters... This business is key in helping issuers protect themselves against market uncertainties. Without this, such a project would never get off the ground.
In a roadshow room: 3 presenters (identical characters), and 30 or so people in the room.
Bank – To sum up then, this project has three major components:
Company 1 – A strong potential for success thanks to a solid business model, notably with the joint forces of our two companies.
Company 2 – An ethical approach to environmental and social issues, since it involves the production of clean electricity.
Bank – And a very interesting yield/risk profile thanks to the attractive interest rates and hedging of risk management.
Applause [ TBC ]
The trading room. Written on the bottom of the screen: "A few days later..."
Trader, on phone – OK for the purchase of 300 Energica bonds at primary issuance, sir; it's noted. Payment and delivery will be made on the day the bonds are issued.
Narration - The fourth, but not least, service consists in offering investment solutions to actors on the financial markets, notably by acting as intermediary between the needs of issuers and investors. But who are these investors? Insurance companies, pension funds, asset or portfolio managers... They have considerable capital to invest, with precise yield/risk targets. The bank's role is to help them make the right choices. And to build appropriate investment strategies with them. Here, the bank has invited the investors whose needs suit the characteristics of our issuer's bond. They have given the thumbs-up: solid proof that this new generation of wind turbines, and our clients, have a very bright future!
Understanding the role of a corporate and investment bank
Taking a concrete example of a company with a project to build a new generation of wind turbines, this educational video explains the services provided by a corporate and investment bank which enable the project to see the day.
The four main services offered include providing strategic advice, organising the financing, helping the client manage financial risk and offering appropriate investment solutions.
In this way, Societe Generale plays a role in financing the economy.