COREN (Cooperativas Orensanas, Sociedad Cooperativa Galega) has established a new commercial paper programme of €50 million in MARF, BME’s Fixed Income Market.

The company will be able to issue short term debt with maturities ranging between three days and twenty-four months.

COREN is one of the largest food business groups in northern Spain. It is a second-degree cooperative. In its origins –which date back to 1962- its core business was livestock and throughout its nearly sixty years of history it has branched out into other sectors of the food industry.

The company manages all stages of the production process through a vertically integrated system. It structures its activities into 5 business areas dedicated to the poultry, porcine, beef and animal feed sectors as well as the sale of agricultural and livestock feeding.The company operates in 56 countries (e.g. Portugal, South Korea, Uruguay, Brazil, Angola and Argentina among others) and employs more than 2,000 professionals.

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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 (See the entire post)