Endesa has relocated its Commercial Paper Program from the Irish Stock Exchange (ISE) to AIAF, Spain’s main regulated Fixed Income market.

This new Programme, which is under Spanish Law, has a size of €3 billion and allows the company to issue Commercial Paper securities with a denomination of either €100.000 or $500.000 and maturities ranging from 3 to 364 days.

The company is rated by Standard & Poor’s with an A-2 short-term, stable outlook, by Moody´s with a P-2 stable and by Fitch with a rating of F-2 stable.

Endesa had in 2018 consolidated revenues of €20.19 billion and an EBITDA of €3.62 billion.

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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)