Azvi has established its first sustainability-linked Commercial Paper program for a maximum amount of 50 million euros in MARF (BME´s Alternative Fixed-Income Market). The program will enable the company to access qualified investors to diversify its short-term financial resources, broaden its sources of funding, and optimize its debt management in terms of costs and deadlines. The validity of the Commercial Paper Program is one year from the date of incorporation into MARF as per the Information Memorandum.
The company obtained a Second Party Opinion issued by G-Advisory, confirming that the notes issued under the program will be linked to ESG criteria, with specific sustainability KPIs and indicators.
PKF Attest acts as the Registered Advisor on MARF and Global Coordinator of the program. PKF Attest will act as Dealer together with Banca March. Banco Inversis will act as the Pay Agent. J&A Garrigues has been the legal advisor.
Azvi has a presence in sectors of great importance to the Spanish and international economy. Its activities are mainly focused on construction, with extensive experience in the whole railway cycle (infrastructure, superstructure, electrification, and signaling) and the development and operation of infrastructure and services concessions.
The Group has international presence in Europe and America. As of August 31, 2023, the construction works portfolio of the Group amounted to 1,810.1 million euros (including works of integrated joint ventures), with 76% corresponding to international projects.
Regarding the Group’s concession portfolio, as of June 30, 2023, it amounted to a total of 2,198 million euros, composed of 47% national projects, 29% of development projects in Chile, 23% in Uruguay, and the remaining 1% in Mexico.
Grupo Azvi has a BB+ rating granted by EthiFinance Ratings.
As of 2022, the Group achieved a turnover of 565.25 million Euros and an EBITDA of 41.59 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: BME
