Leading Spanish railway manufacturer, Construcciones y Auxiliar de Ferrocarriles, (CAF), lists for the first time on the Main Securities Market (MSM) of the Irish Stock Exchange (ISE) with issuance of €25m notes from its €200m Euro Commercial Paper (ECP) programme.
PKF Attest is the advisor and global coordinator of the programme. The dealers are Banco Sabadell, Banco Santander, ING and Norbolsa. Clifford Chance is the legal advisor
The Basque-based multinational is a leading manufacturer of railway vehicles and equipment. CAF has delivered railway systems in Spain, been involved in the design and build of the express trains to Hong Kong and Heathrow airports; and the provision of metro trains in Helsinki, Santiago de Chile and the US cities of Washington, Sacramento and Pittsburgh.
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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: ISE (see the entire post)
