Feníe Energía has incorporated a new Green Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 30 million Euros. The program will allow the Company to issue debt with a maturity of up to two years over the next 12 months.
The funds will be used to finance or refinance all or part of both existing or future renewable energy and energy efficiency projects. The CPs issued under the Programme will be considered green instruments, in accordance with the Green Bond Principles (GBP) of the International Capital Market Association (ICMA). The Issuer has been granted a Second Party Opinion by EthiFinance establishing that the Programme is aligned with the four GBP principles.
The origin of the Company lies in the Federación Nacional de Empresarios de Instalaciones de España (FENIE) which launched in 2010 Feníe Energía. The company carries out its activity in the energy sector in Spain. It focuses its business, among others, on providing retail reseller services for all types of energy products, for which the Company has two wind farms with an installed capacity of 18.9 megawatts, as well as carrying out and implementing programmes to manage the demand for electricity and gas and developing energy services related to improving energy efficiency.
Currently the Company has over 3,200 shareholders, which after 12 years make up a commercial network that has become the largest network of experts in energy efficiency in Spain. EthiFinance Ratings has assigned a BB- rating with a stable trend to Feníe Energía.
Feníe Energía obtained a consolidated turnover in 2021 of 606.3 million Euros and an EBITDA of 6.8 million Euros.
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 1 to 364 days for ECP (European Commercial Paper Programmes), up to 24 months for Spanish Pagarés and up to 36 months for Italian 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 the entire post here)