Arquimea has established its first Commercial Paper for a maximum outstanding of 75 million euros, as well as a bond programme pf 100 million in BME’s Alternative Fixed Income Market (MARF). The Commercial Paper programme will enable the company to issue debt over the next 12 months with maturities up to 24 months, while the bond issue will allow the company to issue mid- and long-term debt.
Arquimea is a cross-sectoral international technology company which operates in many different sectors. The company was founded in 2005 and nowadays it counts with approximately 500 employees spread over five business units that work on the following activities: Aerospace & Defence, Industrial Services, Healthcare, Agrotech and Fintech. The main principle of Arquimea are R&D and the development of innovative products and services with high added value which enable the company to solve society’s problems in all the sectors where the Group operates.
With more than 15 years of experience, the company has diversified its presence in different activity sectors, in areas as diverse as space and industry; healthcare and biotechnology; defence
and security, or critical infrastructures. This has been possible due to the combination of the own generation and development of ideas and technologies, as well as to the addition of companies that share the same objectives and vision.
Arquimea is one of the leading technology companies in Spain and in the last five years, the company has developed more than 150 projects and mobilized a volume of more than 320 million euros in R&D&I.
PKF Attest and Beka Finance have acted as Dealers in the Commercial Paper Programme and PKF Attest as Registered Advisor.
In the bond programme, PKF Attest has acted as Dealer as well as as Registered Advisor. J&A Garrigues has been the Legal Advisor in both issues.
The company was granted a long-term rating of BB with a stable outlook by Axesor Rating.
As of last year-end, in March 2021, ARQUIMEA Group had consolidated revenues of 72 million euros and reached an adjusted EBITDA of 15.3 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, 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: (see the entire post here)