MARF, BME’s Fixed Income market, registered a new Commercial Paper (CP) programme by AEDAS Homes with a value of up to 75 million euros, which brings the outstanding balance of the 28 companies with such programmes in this market to a maximum of 2.9 billion euros. Through this new financing tool, Aedas Homes may issue, over a year, individual tranches of Commercial Paper with nominal per-unit amounts of 100,000 euros, maximum terms of 24 months and whose specific conditions will be set in each placement.
Banco Santander, Banco Sabadell, Fidentiis and Norbolsa act as the Programme’s Bookrunners. PKF Attest is the Registered Advisor of AEDAS Homes and J&A Garrigues has legally advised the company in the 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)
