Cunext Group has established its first Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 50 million euros and maturities up to 24 months, which will enable the company to issue short-term debt over the next 12 months.
Cunext is a company specialized in the transformation of copper and aluminium which operates in different sectors related to the transmission of energy, electric engines, the automotive and railway industries and many others. The Group was founded in 1917 when it was focused on the transformation of copper and in 2015 the group included the aluminium to its product portfolio. Since then, the company has focused on continuous innovation and the development of products with the aim of leading the manufacturing of efficient materials for the transmission of electrical energy and data.
The company was granted a credit rating of BB- with a stable outlook by Axesor Rating.
As of year-end 2020, Cunext had consolidated revenues of 1,217.9 million Euros and reached an EBITDA of 11.8 million Euros.
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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.
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