Vidrala, Spanish leading glass bottle manufacturer, has established a new Commercial Paper programme in MARF, BME’s Fixed Income Market. During the following 12 months, Vidrala could have a maximum outstanding amount of up to 100 million euros with maturities ranging from 3 days to 2 years.

Founded in 1965, Vidrala is dedicated to the manufacturing and sale of glass containers for food and beverage products.

The firm had in 2018 total sales of 955.4 million euros and operating income of 239.4 million euros. It has been listed on the Stock Exchange since 1985 and is an IBEX Medium Cap index constituent.

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Commercial Papers are an efficient source of funding

Commercial Papers are short-term money-market securities used as a funding source by financial institutions, as well as governments, supranational agencies and mid and large corporations.

For corporate issuers, Commercial Papers are an extremely efficient funding source, that is complementary to banking facilities and credit lines. It is an efficient working capital solution via Debt Capital Markets.

Commercial Papers are issued under a shelf programme, that has an annual validity (renewable) and a predetermined maximum outstanding size. Notes under a CP programme may be issued at a discount or at a premium, they may bear fixed or floating rate interest. Although CPs, most usually, carry an implicit coupon, they are issued at discount and mature at par (100%).

Maturity of Notes ranges from 3 days to 24 months for Pagarés Programmes and from 1 to 364 days for ECP (European Commercial Paper Programmes).

Commercial Papers are multi-currency instruments that can be issued in different currencies; predominantly in EUR, USD, CHF and GBP. They have a minimum denomination of €100K and are intended for wholesale institutional investors, both national and international.

Source: BME (see the entire post)