OK Mobility has established its first Commercial Paper programme in BME’s Alternative Fixed Income Market (MARF) for a maximum outstanding of 80 million euros and maturities up to 24 months, which will enable the company to issue short-term debt over the next 12 months.
OK Mobility is a multinational group specialized in offering global mobility solutions founded in 2004 by Othman Ktiri. Its activity covers from individual and corporate car rental to retail purchase and sale of vehicles. The Group commercialises more than 200,000 vehicles per year in over 15 countries and has more than 2 million visits in their offices per year. OK Mobility Group keeps growing thanks to its new digital tools which simplifies processes as well as the user experience with the aim of becoming leaders in global mobility.
Nowadays, the company has more than 450 employees and around 45 offices in the main touristic destinations in Spain, Portugal, Italy, Germany, France, Greece and Malta.
As of 2020, OK Mobility had consolidated revenues of 296.4 million euros and reached an EBITDA of 17.1 million euros. The company expects to reach an EBITDA over 50 million euros as of 2021.
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.
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