The Mercado Alternativo de Renta Fija (MARF) has registered a new Commercial Paper programme by Galletas Siro (Grupo SIRO) with a total value of €50 million, which brings the number of companies that have used this short –term financing formula to 25. The total balance of MARF’s commercial paper programmes since the launch of this businesses financing platform, in December 2013, amounts to €2.6 billion.
MARF’s commercial paper programmes have become a very useful tool for providing companies with short-term financing, while also adding financial flexibility and broadening their investor base.
Galletas Siro is the leading company of Gruopo Siro, made up of companies dedicated to the manufacture and marketing of cereal-based food products. With a total staff of 3,200 employees, it has 12 production centres in Spain.
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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: BME (see the entire post)
