Optiver Holding BV is looking to secure about $900 million in financing as the market maker seeks to expand its trading activities, according to people familiar with the matter. The Amsterdam-headquartered firm has hired banks to raise about $700 million in debt, the people said, asking not to be identified discussing private information. It is also looking to line up a revolving credit facility worth around $200 million.
It is unclear when the firm will launch the debt issue, given the uncertainty in the market and the US mid-term elections in November, the people said. The plans aren't final, and there is a chance the financing ultimately won't go ahead, another person said. An Optiver spokesperson declined to comment.
Proprietary trading firms are looking to secure more funding as they expand and invest in technology. Optiver, which reported a 30% increase in net trading income to €4.6 billion last year, has been working to grow in the competitive US market, where it wants to gain share in exchange traded funds. It recently also agreed to take a majority stake in Dutch power and gas trader Northpool as it seeks to build a global energy trading business.
The 40-year-old firm trades in listed derivatives, cash equities, bonds, currencies and ETFs, and employs more than 2,000 people across 11 offices globally. Competitors have also turned to debt markets to scale their businesses. Dutch rival IMC Global Holdings LLC completed its inaugural external debt issuance last year.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing