Grenergy Renovables has established the first Green Commercial Paper programme of a Spanish company in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 100 million eurosand maturities up to 24 months, which will enable the company to issue short-term debt over the next 12 months. Grenergy becomes the first Spanish company to establish a Green Commercial Paper programme aligned with the 2021 Green Bond Principles of the International Capital Market Association (ICMA).
Grenergy is a producer of renewable energy founded in 2007 and specialized in wind and photovoltaic projects. Its activity covers the whole process. Nowadays it has presence in 8 countries around Europe and Latin America.
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”.
By the end of 2020, Grenergy has consolidated revenues of 113.4 million euros and reached an EBITDA of 23.7 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: CincoDías (see the entire post here – only in Spanish)