MARF today registered a new commercial paper (CP) programme by Minerales y Productos Derivados (MINERSA) with a total value of €50 million, which allows the company to issue – over a year – individual tranches of CPs with nominal amounts per unit of 100,000 euros and maturities up to 24 months.
The transaction brings the outstanding balance of the 29 companies that have registered commercial paper programs in this market to 2.9 billion euros.
Minersa has been listed on the stock exchange since 1986. This international Group is focused in the production of industrial minerals, chemical products, construction products, natural absorbents and bleaching clays. The company manages 14 mines and 15 productive facilities in Spain, France, the Netherlands, Belgium, Germany, UK, South Africa and Senegal.
As of 2017, the Group had revenues of 290.5 million Euros.
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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)
