The Mercado Alternativo de Renta Fija (MARF), BME’s Fixed Income market, has registered a new commercial paper (CP) programme by Operibérica with a total value of €30 million, which brings the number of companies that have used MARF’s commercial paper programmes to 27, from 13 different economic sectors.The total outstanding volume of MARF’s commercial paper programmes since this BME’s market was launched, in December 2013, has reached €2.75 billion.
Under this programme, Operibérica will be able to issue individual tranches of CPs during a year, with nominal values of €100,000 and maximum maturities of up to 24 months.
Founded in 1981, Operibérica is the parent company of a group of companies focused in the recreational gambling sector. in 2000 became part of Codere Group.
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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)
