Aludium has established its first Commercial Paper Programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 50 million euros. The Commercial Paper Programme will enable the company to issue debt with a maturity of up to two years over the next 12 months.

Founded in 2015, Aludium specialises in the development and manufacture of all types of rolled products and thin sheets of aluminium in all its different forms, compositions and thickness. The company also distributes, markets, imports, exports, represents and sells them, whether manufactured in-house or by third parties.

Its activity also extends to the remelting of offcuts from its own production and from third parties and the sale of by-products and waste. Aludium has three plants located in Amorebieta and in Alicante where there is located an R&D center that is considered one of the world’s leading aluminum research centers.

In 2021, the company reported a turnover of 560.8 million euros and an EBITDA of 18.2 million euros.

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 with a predetermined maximum outstanding size, and that are renewable annually (or every 3 years for STEP label). CPs may be issued at a discount or at a premium, they may bear fixed or floating rate interest, although they most usually carry an implicit coupon.

Maturity of Notes ranges from 1 to 364 days for ECP (European Commercial Paper Programmes), up to 24 months for Spanish Pagarés and up to 36 months for Italian Cambiali Finanziaria.

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 here)