Arteche has registered a new Commercial Paper programme with a maximum outstanding of €50 million in MARF, BME’s Fixed Income Market. The programme will allow the Company to issue short-term debt with maturities up to 24 months and to diversify its funding sources during the following 12 months.
Arteche is an industrial multinational company founded in 1946 and focused on the electrical sector. It has almost 75 years of experience in the design, manufacture, integration, and marketing of instrument transformers, becoming one of the world’s leading companies in this field.
The Group has an international presence, as it operates in countries such as Spain, France, Germany, USA, Chile, Brazil, Mexico, Argentina, India, Thailand, UAE, China and Australia, allowing the Group to export its products and services to over 150 countries worldwide.
It also carries out projects for substations and renewable energy plants and offers solutions related to energy quality and distribution automatization.
In 2019 the company obtained revenues of €271,3 million and an EBITDA of €25,5 million, and it has more than 1800 employees worldwide. The Group has BB, positive outlook, corporative rating by Axesor.
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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 (Read the entire post here)
