The Mercado Alternativo de Renta Fija (MARF) has registered a Commercial Paper Programme by Audax Energía with a maximum amount of €50 million. The programme will allow Audax to push forward with its process of growth and diversification of its short-term sources of financing, following the issue of a 5-year bond for €21 million in 2014 through MARF.

This Programme allows single issues of CPs with an individual nominal value of €100,000 during a year and a term of between 3 days and 24 months. Axesor granted a rating of BBB- to the company.

PKF Attest is the Registered Advisor of the programme. Banco Santander, Banco Sabadell and Beka Finance act as placement entities and J&A Garrigues as the legal advisor.

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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)