FCC (Fomento de Construcciones y Contratas) has established a €300 million European Commercial Paper Programme (ECP). The programme has been admitted for listing on the Irish Stock Exchange (ISE)
The dealers of the programme are Bankia, S.A. and Banco Sabadell, S.A.
FCC has been delivering services worldwide for over 100 years. Currently, FCC Group is a global reference within its sectors. The Group has three main business lines:
- Environment: management and treatment of domestic and industrial wate, street cleaning, maintenante of parks and gardens among other activities
- Water: operates within the full water cycle.
- Infraestructure: design, development and maintenance of infrastructures.
As of 2017 the company had net revenues of 5,802 million Euro and an EBITDA of 815 million Euro.
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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: FCC (See the entire post)
