Leonardo has established its first Euro Commercial Paper program with a STEP label for a maximum amount of 1,000 million euros, which will enable the Company to issue debt over the next three years with maturities of up to 12 months. This Programme will allow the Company to diversify its short-term financing instruments, to achieve a wider spectrum of funding sources and optimize its debt management in terms of maturity profile and pricing.

Founded in 1864, Leonardo develops its business in the Aerospace, Defense and Security sectors. The company plays a leading role in major international strategic programs and is a trusted technology partner of governments, defense agencies, institutions and businesses. Innovation, continuous research, digital manufacturing and sustainability are the cornerstones of Leonardo’s business around the world.

Leonardo has several strategic business units including electronics, helicopters, cybersecurity, space, aerostructures and automotive. Leonardo’s growth plan for the next ten years involves strengthening its core activities, developing products and services, and nurturing its technological innovation processes.

Leonardo has been listed on the Milan Stock Exchange since 2005 with a current market capitalization of >2,543 million euros. As of September 2022, the Company had revenues of 13.4 billion Euros and an EBITDA of 938 million Euros.

PKF Attest acts as a permanent Dealer together with Banca Akros, Barclays Bank, Crédit Agricole and Equita SIM.

The company has a rating of Ba1 by Moody’s with a positive outlook, BB+ by S&P Ratings with a positive outlook and BBB- by Fitch Ratings with a stable outlook.

Likewise, the program has obtained a rating of F3 by Fitch and Non-Prime (NP) by Moody’s


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: Leonardo (see the entire post here)