Which is the most appropriate instruments for two parties

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Reference no: EM133925943

Problem

Marconi Ltd., an Italian company, wishes to fund a long-term investment in its South Africa operations. It can obtain Euro-based funding in Italy at 5.5%, and Rand-based funding in South Africa at 10.5%. On the other hand, the JSE-listed Valli Property Fund, which wants to expand its property interests into the EC, can obtain funding for this in South Africa at 7.5%, but in the EC countries it is interested in at 9.25%. All the above scenarios involved floating rate long-term loans. Get the instant assignment help. Which is the most appropriate instruments for the two parties to use to address their needs in this scenario?

Reference no: EM133925943

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