MARF, BME’s Fixed Income market, today registered a new commercial paper (CP) programme by Finycar, company owned by Grupo Sorigué.
Finycar accesses the market to diversify its short-term financing sources. Under this programme, the company will be able to register individual tranches of CPs with nominal per-unit amounts of 100,000 euros, maximum terms of 2 years and an outstanding volume of up to 50 million euros.
Bankinter acts as the programme’s Sole-Lead Arranger and as Placement Entity for the CPs. It will also be Finycar’s Payment Agent in MARF. Deloitte Financial Advisory is the issuer’s Registered Advisor, while law firm J&A Garrigues has legally advised the issuer on the programme’s launch and registration with MARF.
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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)
