FNAC DARTY has registered a new NEU Commercial Paper programme for 300 million Euro.
The commercial paper (NEU CP –Negotiable EUropean Commercial Paper) and medium-term notes (NEU MTN – Negotiable EUropean Medium Term Note) market allows issuers to diversify their sources of funding and provides investment opportunities in euro and other currencies.
In accordance with the French financial and monetary code, securities issued since June 1st 2016 are “titres négociables à court terme ” and “titres négociables à moyen terme ”. Their trade name is NEU CP (Negotiable EUropean Commercial Paper) for short term programs, and NEU MTN (Negotiable EUropean Medium-Term Note) for medium term programs. The use of either trade or legal name is equivalent.
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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: Banque-France (see the entire post)
