Mar 23, 2011 14:48
13 yrs ago
8 viewers *
French term
United Kingdom
BA(Hons), Dip Trans IOL, MCIL London
Native in: English
Works in: French to English, English
augmentation de capital et endettement
French to English
Bus/Financial
Finance (general)
augmentation de capital / apports
Eeks - a nasty financial bit in an otherwise largely un-financial document! I am not sure I am reading this right:
première étape : acquisition en numéraire d’environ 40% de Z par X/Y après augmentation de 250 K€ du capital de X/Y par augmentation de capital et endettement de X/Y à hauteur de 450K€ (l’obtention de ces deux financements conditionnant, pour X/Y, la signature de tout engagement contraignant en vue de la réalisation des Opérations).
From what comes before, it looks like companies X and Y are wanting to merge in order to acquire company Z. They are needing to do this in two stages, the above being the first. The bit that is confusing me is the 'augmentation de capital et endettement de X/Y' of 450k euros. Finance is really not my forte! Does it mean that the shareholders' plan is to increase X/Y's capital by 250k, then again by 450k, but that it will owe the 450k? i.e. it will have capital of 600k but will owe 450k of it? Increasing its capital and its debt at the same time? It is not possible to tell from the context, as there are no further details, unfortunately. Could always try checking with client, but wanted to have a bash at grasping it myself, first! Any ideas?
première étape : acquisition en numéraire d’environ 40% de Z par X/Y après augmentation de 250 K€ du capital de X/Y par augmentation de capital et endettement de X/Y à hauteur de 450K€ (l’obtention de ces deux financements conditionnant, pour X/Y, la signature de tout engagement contraignant en vue de la réalisation des Opérations).
From what comes before, it looks like companies X and Y are wanting to merge in order to acquire company Z. They are needing to do this in two stages, the above being the first. The bit that is confusing me is the 'augmentation de capital et endettement de X/Y' of 450k euros. Finance is really not my forte! Does it mean that the shareholders' plan is to increase X/Y's capital by 250k, then again by 450k, but that it will owe the 450k? i.e. it will have capital of 600k but will owe 450k of it? Increasing its capital and its debt at the same time? It is not possible to tell from the context, as there are no further details, unfortunately. Could always try checking with client, but wanted to have a bash at grasping it myself, first! Any ideas?
Proposed translations
(English)
| 4 +2 | issue of new shares and debt |
joehlindsay
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| 5 +1 | Increase in capital and debt |
Marie-Helene Dubois
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| 4 | capital increase and debt |
Constantinos Faridis (X)
|
References
| capital increase |
rkillings
|
Proposed translations
+2
3 hrs
Selected
issue of new shares and debt
Good old 'augmentation de capital' rears it's ugly head again.
Firstly, this is possibly the single most mistranslated term in French to English finance (and Italian/aumento di capitale, Spanish/Aumento de capital, and German Kapitelerhöhing).
There is no such thing as "capital increase" as a set term in English speaking finance. It is a classic calque. When French say "augmentation de capital", what they really mean is 'issuing new shares', a 'secondary share offering', "seasoned share offering" 'issuing new equity' or 'issuing fresh equity'. (Google these terms to confirm they mean the same thing)
As usual, you will have translators (stridently) insisting that 'capital increase' exists because they have seen it so consistently mistranslated over the years. I submit, the one thing the translators have in common is innocence of any professional experience in finance. You can check people's CVs on Proz and see if they have qualifications in capital markets, etc.
Secondary offerings do increase a company's capital by offering more shares, but the term 'capital increase' does not exist except in unpolished translations. You will find it in no finance dictionaries or glossaries.
What is important about translating this correctly is this: if you just say capital has increased to most finance people in the UK or US, they will think something like retained earnings have been shifted to capital, not that new shares have been issued. New issues are very contentious because they are dilutive of current ownership, which can make shareholders quite angry. There is legislation that protects shareholders to a certain extent in France, but not in the US.
If you enter 'capital increase' in a wikipedia.com search, it will redirect you to 'seasoned share offering' as it should.
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Note added at 3 hrs (2011-03-23 17:57:44 GMT)
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What this says is that the company has raised money for the acquisition by issuing new shares (stock/equity) and debt (bonds).
Firstly, this is possibly the single most mistranslated term in French to English finance (and Italian/aumento di capitale, Spanish/Aumento de capital, and German Kapitelerhöhing).
There is no such thing as "capital increase" as a set term in English speaking finance. It is a classic calque. When French say "augmentation de capital", what they really mean is 'issuing new shares', a 'secondary share offering', "seasoned share offering" 'issuing new equity' or 'issuing fresh equity'. (Google these terms to confirm they mean the same thing)
As usual, you will have translators (stridently) insisting that 'capital increase' exists because they have seen it so consistently mistranslated over the years. I submit, the one thing the translators have in common is innocence of any professional experience in finance. You can check people's CVs on Proz and see if they have qualifications in capital markets, etc.
Secondary offerings do increase a company's capital by offering more shares, but the term 'capital increase' does not exist except in unpolished translations. You will find it in no finance dictionaries or glossaries.
What is important about translating this correctly is this: if you just say capital has increased to most finance people in the UK or US, they will think something like retained earnings have been shifted to capital, not that new shares have been issued. New issues are very contentious because they are dilutive of current ownership, which can make shareholders quite angry. There is legislation that protects shareholders to a certain extent in France, but not in the US.
If you enter 'capital increase' in a wikipedia.com search, it will redirect you to 'seasoned share offering' as it should.
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Note added at 3 hrs (2011-03-23 17:57:44 GMT)
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What this says is that the company has raised money for the acquisition by issuing new shares (stock/equity) and debt (bonds).
Note from asker:
| Just to answer one of the comments your answer generated: it was not actually a financial translation - and that was precisely why I sought help on the bit I wasn't comfortable with. Pity that so many people on here feel the need to make such comments... they go nowhere, well, nowhere worthwhile, anyway. Anyway, the answers I received were, mostly, helpful. Thank you. |
Peer comment(s):
| agree |
Rob Grayson
: Indeed. Thus illustrating the dangers of taking on financial translations when one does not genuinely specialise in the field.
2 mins
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Thank you very much indeed.
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| agree |
AllegroTrans
: agree in general with you, and anyway this appears to be a share company; but a sole trader/partnership/etc. could also "augmenter son capital" and obviously would do so by straight cash injection
7 hrs
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One can theorise, but 99 times out of 100, when some one uses the term 'augmentation de capital', he/she means 'issue new equity', especially when the noun phrase 'augmentation de capital' and not 'augmenter son capital' is used.
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4 KudoZ points awarded for this answer.
Comment: "Selected automatically based on peer agreement."
5 mins
capital increase and debt
16 Feb 2010 ... KW), will seek a capital increase and to convert some debt into equity in 2010, Zain Saudi's Chief Executive Saad al-Barrak said on Tuesday. ...
www.reuters.com/.../us-kuwait-zain-saudi-idUSTRE61F1O120100...
www.reuters.com/.../us-kuwait-zain-saudi-idUSTRE61F1O120100...
+1
1 hr
Marie-Helene Dubois
Spain
Spain
Native in English
Specializes in field
Spain
Word class
Native in: English 
Works in: Spanish to English, Dutch to English, French to English, and 1 more.
Related KudoZ points
:
76
Increase in capital and debt
It's a bit of a strange turn of phrase there because it looks as though they are saying with "par" that the increase of 250k€ of capital is as a result of the increase of capital and debt by 450k€ which is later contradicted by saying that they are "deux financements".
You can however increase your capital and debt at the same time by obtaining a loan which provides this increase so the correct translation of this phrase would be "increase in capital and debt" in that both are being incremented by obtaining this loan.
I have included an article which I hope will help to put that into context..
You can however increase your capital and debt at the same time by obtaining a loan which provides this increase so the correct translation of this phrase would be "increase in capital and debt" in that both are being incremented by obtaining this loan.
I have included an article which I hope will help to put that into context..
Reference:
Reference comments
3 days 17 hrs
Reference:
capital increase
Financial Times Lexicon:
"An increase in the size of a company's equity capital, either through the issue of new shares or a hike in the par value of its capital stock."
See also the longer entry in the Deutsche Börse glossary, which includes increase by incorporation of retained earnings (2nd link).
"An increase in the size of a company's equity capital, either through the issue of new shares or a hike in the par value of its capital stock."
See also the longer entry in the Deutsche Börse glossary, which includes increase by incorporation of retained earnings (2nd link).
Discussion
If in the future it decides it needs more capital, as in this case where it wants to acquire another company, it goes back to an investment bank and has them stage another share offering which is called a "secondary share offering" often expressed as "issue new shares, issue new equity, issue fresh equity.
The company can also issue new bonds which have an interest rate that must be paid. That makes bonds debt, because the holder doesn't get any ownership in the company, it just loans money that must be repaid with interest.
So this text says that the company is raising money for the acquisition in two ways: 1) increasing its shares with a secondary share offering 2) increasing its debt, most probably by issuing new bonds, but possibly, again it isn't disclosed, also taking out bank loans.
That is to say: "...après augmentation du capital" du X/Y ..."
Please note that here they say "du" capital, this means that they will increase total capital, but then they say "par augmentation DE capital" which is a set term and means 'secondary (or seasoned) share offering'/issue new shares/issue fresh equity/issue new equity in English.
You can just say issue new equity or shares and new debt. The debt is most likely bonds rather than bank lending, but that isn't disclosed. Corporate borrowing for acquisitions is usually done by bond issue and secondary share offerings rather than banks. Debt (endettement) means either bonds or similar instruments, or bank loans.
In finance, stocks or shares are are known as equity, and bonds and similar instruments are known as debt.