Greenalia has established its first Green Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 100 million euros and maturities up to 24 months, which will enable the company to issue short-term debt over the next 12 months. The company becomes the second Spanish company to establish a Green Commercial Paper programme aligned with the 2021 Green Bond Principles (GBP).
Greenalia is a producer of renewable energy founded in 2006 and specialized in the production and storage of energy with the use of wind, sun and biomass from certified plantations. At the beginning, the company was focused on the forestry sector and afterwards, it expanded its activity to the energetic sector, specifically to the biomass power generated from the use of organic and inorganic matter formed in biological or mechanical processes. Nowadays, the company is also specialized in other renewable energies such as wind and solar photovoltaic energy.
The headquarters of Greenalia are in A Coruña and the company operates principally in Spain. In July the Group started a project in a new photovoltaic station in Texas (United States), diversifying its portfolio internationally.
The green rating agency, Sustainalytics, has anticipated that the company “has the appropriate measures to identify, manage and mitigate the environmental and social risks associated with renewable energy projects”.
As of 2020, Greenalia has consolidated revenues of 43 million euros and reached an EBITDA of 11 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, 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: El Economista (see the entire post here – only in Spanish)