CAF has incorporated a new Commercial Paper programme in the Alternative Fixed Income Market (MARF) for a maximum amount of 250 million euros and maturities of up to 24 months. This program will allow the company to diversify its sources of financing and issue short-term debt over the next 12 months.
PKF Attest Capital Markets acts, together with Banco Sabadell, Banco Santander and Norbolsa, as Dealers. Norbolsa is as well, the Arranger and Registered Advisor of the Programme. The Paying Agent will be Banco Santander.
The CAF Group, an international reference as a supplier of comprehensive transport systems, both in the railway (underground, trams, high speed, suburban, commuter, LRVs, locomotives) and buses (conventional, electric, CNG , hydrogen) segments, offers a wide range of products and services at the forefront of technology in the field of sustainable mobility, as well as project management along all its stages: analysis and feasibility studies, engineering and system design, civil works, signaling, electrification, supply of rolling stock and system rehabilitation, operation and maintenance.
The Group has a wide international presence, operating in over 40 countries. It has production plants in Spain, France, the United States, Brazil, Mexico, Poland, and the United Kingdom, as well as a large number of subsidiaries throughout the world.
The company is listed on the stock exchange and is an IBEX Medium Cap Index constituent. As of 2019 the Group had consolidated revenues of 2.6 billion euros and an EBITDA of 244 million.
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 here)