Ormazabal Electric S.L.U. has registered a new Commercial Paper programme of €50 million in MARF, BME’s Fixed Income Market. The Programme will allow the company to issue short-term debt with maturities up to two years.
PKF Attest is the global coordinator and the Registered Advisor of the programme in MARF. The Dealers of the programme are Banca March, Banco Santander, Bred Banque Populaire and Norbolsa. Cuatrecasas, Gonçaves Pereira is the legal advisor.
Ormazabal is a family-owned company founded in 1967. Since its beginnings the company has been involved in the development and transformation of the Spanish power sector, becoming a market leader as a provider of personalized solutions to electrical utilities and electrical end users.
The company has an international presence as it runs 15 industrial facilities in Europe, North and South America and Asia. It is also present in over 100 cities worldwide through an international network of trade delegations and local partners.
As of 2018, Ormazabal had over 2,000 employees and consolidated revenues of €444 million. Axesor granted the company a corporate rating of BBB-, stable outlook.
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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)
