Ence Energía y Celulosa has established a sustainable commercial paper program for a maximum amount of 200 million euros in MARF, BME’s Fixed Income Market A program with which the company will be able to access qualified investors to diversify its financial resources in the short term, a greater range of financing sources and optimize the management of its debt in regarding costs and deadlines. The CP program will allow the company to issue debt with a maturity of up to two years over the next 12 months.
The Company obtained a Second Party Opinion, issued by G-Advisory, confirming that the notes issued under the programme will be linked to ESG criteria, with specific sustainability KPIs and indicators.
Ence Energía y Celulosa is a Spanish multinational with more than 60 years of experience in its sector, European leader in the production of eucalyptus pulp, which accounts for a large part of its business, as well as being a pioneer in Spain in the production of renewable energy from agricultural and forestry biomass, with great potential for energy generation.
At the end of 2022 the Group had a turnover of 1.003 million euros and an EBITDA of 248 million euros.
The Company has been listed since 2001 and currently, is a component of the Ibex Medium Cap.
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 with a predetermined maximum outstanding size, and that are renewable annually (or every 3 years for STEP label). CPs may be issued at a discount or at a premium, they may bear fixed or floating rate interest, although they most usually carry an implicit coupon.
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), and up to 36 months for Cambiali Finanziaria.
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 full article here)
